Illinois vs Washington Payroll Comparison
Compare payroll compliance requirements between Illinois and Washington. 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 | Washington |
|---|---|---|
| Minimum Wage | ⚠️$15.00/hour (state); $16.60/hour (Chicago large employers) | ⚠️$17.13/hour (2026); Seattle $21.30 |
| Tipped Minimum | 60% of minimum wage ($9.00 state) | ✓$17.13 (no tip credit) |
| Overtime Threshold | 40 hours/week (1.5x regular rate) | 40 hours/week |
| Final Pay (Termination) | Next regular payday | End of next regular pay period |
| Final Pay (Resignation) | Next regular payday | End of next regular pay period |
| PTO Payout Required? | ⚠️Yes (accrued vacation must be paid) | ✓No (unless policy requires) |
| Pay Frequency Mandate | Semi-monthly (most employees) | At least monthly |
| State Income Tax | ⚠️Yes (4.95% flat rate) | ✓None |
| Unemployment Insurance | Yes | Yes |
| State Disability Insurance | ✓No | ✓No (separate from PFML) |
| Paid Family Leave | ✓No (state program not yet enacted) | ⚠️Yes (WA PFML) |
| Paid Sick Leave | ⚠️Yes (40 hours/year - Paid Leave for All Workers Act) | ⚠️Yes (1 hour per 40 hours) |
| Workers' Comp Required | ⚠️Yes (all employers) | ⚠️Yes (all employees) |
Key Differences: Illinois vs Washington
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)
WAWashington
- Minimum Wage:$17.13/hour (2026); Seattle $21.30
- Tipped Minimum:$17.13 (no tip credit)
- Overtime Threshold:40 hours/week
- Final Pay (Termination):End of next regular pay period
- Final Pay (Resignation):End of next regular pay period
- PTO Payout Required?:No (unless policy requires)
Understanding Illinois and Washington Payroll Differences
State Income Tax: Illinois has state income tax (Yes (4.95% flat rate)), while Washington has no state income tax. 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 Washington at $17.13/hour (2026); Seattle $21.30. 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). Washington: Yes (1 hour per 40 hours). 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 Washington.