Illinois vs Ohio Payroll Comparison
Compare payroll compliance requirements between Illinois and Ohio. 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 | Ohio |
|---|---|---|
| Minimum Wage | ⚠️$15.00/hour (state); $16.60/hour (Chicago large employers) | ⚠️$10.45/hour (2024); small employers $7.25 |
| Tipped Minimum | 60% of minimum wage ($9.00 state) | $5.25 + tips = $10.45 |
| Overtime Threshold | 40 hours/week (1.5x regular rate) | 40 hours/week (federal 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) | Semi-monthly (twice per month) |
| State Income Tax | ⚠️Yes (4.95% flat rate) | ⚠️Yes (0% - 3.75% progressive) |
| Unemployment Insurance | Yes | Yes |
| State Disability Insurance | ✓No | ✓No |
| Paid Family Leave | ✓No (state program not yet enacted) | ✓No |
| Paid Sick Leave | ⚠️Yes (40 hours/year - Paid Leave for All Workers Act) | ✓No statewide mandate |
| Workers' Comp Required | ⚠️Yes (all employers) | ⚠️Yes (BWC state fund - monopolistic) |
Key Differences: Illinois vs Ohio
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)
OHOhio
- Minimum Wage:$10.45/hour (2024); small employers $7.25
- Tipped Minimum:$5.25 + tips = $10.45
- Overtime Threshold:40 hours/week (federal FLSA)
- Final Pay (Termination):Next regular payday
- Final Pay (Resignation):Next regular payday
- PTO Payout Required?:No (unless policy requires)
Understanding Illinois and Ohio Payroll Differences
State Income Tax: Illinois has state income tax (Yes (4.95% flat rate)), while Ohio has state income tax (Yes (0% - 3.75% progressive)). 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 Ohio at $10.45/hour (2024); small employers $7.25. 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). Ohio: No statewide mandate. 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 Ohio.