Illinois vs New York Payroll Comparison
Compare payroll compliance requirements between Illinois and New York. 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 York |
|---|---|---|
| Minimum Wage | ⚠️$15.00/hour (state); $16.60/hour (Chicago large employers) | ⚠️$17.00/hr NYC/LI/Westchester, $16.00/hr rest of state (2026) |
| Tipped Minimum | 60% of minimum wage ($9.00 state) | Varies by region and industry |
| Overtime Threshold | 40 hours/week (1.5x regular rate) | 40 hours/week (FLSA) |
| 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) | Weekly for manual workers; semi-monthly for others |
| State Income Tax | ⚠️Yes (4.95% flat rate) | ⚠️Yes (4% - 10.9%) |
| Unemployment Insurance | Yes | Yes |
| State Disability Insurance | ✓No | ⚠️Yes (DBL required) |
| Paid Family Leave | ✓No (state program not yet enacted) | ⚠️Yes (up to 12 weeks) |
| Paid Sick Leave | ⚠️Yes (40 hours/year - Paid Leave for All Workers Act) | ⚠️Yes (40-56 hours depending on employer size) |
| Workers' Comp Required | ⚠️Yes (all employers) | ⚠️Yes (all employers) |
Key Differences: Illinois vs New York
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)
NYNew York
- Minimum Wage:$17.00/hr NYC/LI/Westchester, $16.00/hr rest of state (2026)
- Tipped Minimum:Varies by region and industry
- Overtime Threshold:40 hours/week (FLSA)
- Final Pay (Termination):Next regular payday
- Final Pay (Resignation):Next regular payday
- PTO Payout Required?:No (unless policy requires)
Understanding Illinois and New York Payroll Differences
State Income Tax: Illinois has state income tax (Yes (4.95% flat rate)), while New York has state income tax (Yes (4% - 10.9%)). 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 York at $17.00/hr NYC/LI/Westchester, $16.00/hr rest of state (2026). 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 York: Yes (40-56 hours depending on employer size). 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 York.