Illinois vs New Jersey Payroll Comparison
Compare payroll compliance requirements between Illinois and New Jersey. 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.
| Requirement | Illinois | New Jersey |
|---|---|---|
| Minimum Wage | ⚠️$15.00/hour (state); $16.60/hour (Chicago large employers) | ⚠️$15.13/hour (2024) |
| Tipped Minimum | 60% of minimum wage ($9.00 state) | $5.26 + tips = $15.13 |
| Overtime Threshold | 40 hours/week (1.5x regular rate) | 40 hours/week (1.5x) |
| Final Pay (Termination) | Next regular payday | Next regular payday |
| Final Pay (Resignation) | Next regular payday | Next regular payday |
| PTO Payout Required? | ⚠️Yes (accrued vacation must be paid) | ✓No (unless policy requires) |
| Pay Frequency Mandate | Semi-monthly (most employees) | At least semi-monthly |
| State Income Tax | ⚠️Yes (4.95% flat rate) | ⚠️Yes (1.4% - 10.75%) |
| Unemployment Insurance | Yes | Yes |
| State Disability Insurance | ✓No | ⚠️Yes (TDI required) |
| Paid Family Leave | ✓No (state program not yet enacted) | ⚠️Yes (FLI up to 12 weeks) |
| Paid Sick Leave | ⚠️Yes (40 hours/year - Paid Leave for All Workers Act) | ⚠️Yes (40 hours/year) |
| Workers' Comp Required | ⚠️Yes (all employers) | ⚠️Yes (all employers) |
Key Differences: Illinois vs New Jersey
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)
NJNew Jersey
- Minimum Wage:$15.13/hour (2024)
- Tipped Minimum:$5.26 + tips = $15.13
- Overtime Threshold:40 hours/week (1.5x)
- Final Pay (Termination):Next regular payday
- Final Pay (Resignation):Next regular payday
- PTO Payout Required?:No (unless policy requires)
Understanding Illinois and New Jersey Payroll Differences
State Income Tax: Illinois has state income tax (Yes (4.95% flat rate)), while New Jersey has state income tax (Yes (1.4% - 10.75%)). 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 New Jersey at $15.13/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). New Jersey: Yes (40 hours/year). 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 New Jersey.