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Illinois vs Minnesota Payroll Comparison

Compare payroll compliance requirements between Illinois and Minnesota. See key differences in wages, taxes, leave policies, and employer obligations.

Compare State Payroll Requirements

Select 2 states to compare their payroll compliance requirements side-by-side.

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RequirementIllinoisMinnesota
Minimum Wage⚠️$15.00/hour (state); $16.60/hour (Chicago large employers)N/A
Tipped Minimum60% of minimum wage ($9.00 state)✓Same as regular minimum wage (no tip credit)
Overtime Threshold40 hours/week (1.5x regular rate)40 hours/week (federal FLSA)
Final Pay (Termination)Next regular payday⚠️Immediately on demand
Final Pay (Resignation)Next regular paydayNext regular payday
PTO Payout Required?⚠️Yes (accrued vacation must be paid)⚠️Yes (if policy provides)
Pay Frequency MandateSemi-monthly (most employees)At least monthly; within 15 days
State Income Tax⚠️Yes (4.95% flat rate)⚠️Yes (5.35% - 9.85%)
Unemployment InsuranceYesYes
State Disability Insurance✓No✓No
Paid Family Leave✓No (state program not yet enacted)Coming 2026
Paid Sick Leave⚠️Yes (40 hours/year - Paid Leave for All Workers Act)⚠️Yes (Earned Sick & Safe Time - 48 hrs/yr)
Workers' Comp Required⚠️Yes (all employers)⚠️Yes (all employers)
Minimum Wage (Large Employer)N/A⚠️$10.85/hour (2024)
Minimum Wage (Small Employer)N/A⚠️$8.85/hour (2024)
⚠️More restrictive / complex✓Simpler / no requirement

Summary

Minnesota has the most complex compliance requirements with 7 restrictive rules compared to Illinois's 5.

Key Differences: Illinois vs Minnesota

ILIllinois

  • Minimum Wage:$15.00/hour (state); $16.60/hour (Chicago large employers)
  • Tipped Minimum:60% of minimum wage ($9.00 state)
  • Overtime Threshold:40 hours/week (1.5x regular rate)
  • Final Pay (Termination):Next regular payday
  • Final Pay (Resignation):Next regular payday
  • PTO Payout Required?:Yes (accrued vacation must be paid)
View full Illinois guide →

MNMinnesota

  • Minimum Wage (Large Employer):$10.85/hour (2024)
  • Minimum Wage (Small Employer):$8.85/hour (2024)
  • Tipped Minimum:Same as regular minimum wage (no tip credit)
  • Overtime Threshold:40 hours/week (federal FLSA)
  • Final Pay (Termination):Immediately on demand
  • Final Pay (Resignation):Next regular payday
View full Minnesota guide →

Understanding Illinois and Minnesota Payroll Differences

State Income Tax: Illinois has state income tax (Yes (4.95% flat rate)), while Minnesota has state income tax (Yes (5.35% - 9.85%)). This significantly impacts both employer withholding responsibilities and employee take-home pay.

Minimum Wage: Illinois minimum wage is $15.00/hour (state); $16.60/hour (Chicago large employers), compared to Minnesota at $10.85/hour (2024). Employers must pay at least the higher of federal, state, or local minimum wage requirements.

Paid Sick Leave: Illinois: Yes (40 hours/year - Paid Leave for All Workers Act). Minnesota: Yes (Earned Sick & Safe Time - 48 hrs/yr). States with mandatory paid sick leave require employers to track accruals and provide specific leave entitlements.

For complete compliance requirements, review the full state guides for Illinois and Minnesota.