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Employer checklist · Illinois · 2027

Illinois employer compliance checklist for 2027

Registration, new hires, pay rates, leave, breaks, insurance, final pay and year-end filing, in the order you meet them, each from the state's own pages.

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Sources checked:

Quick answer. Illinois: $14,250 SUTA wage base (2026); 3.35% new employer rate; new hires reported in 20 days; $15.00 minimum wage; paid sick leave required; meal breaks required; final pay by the next payday if fired. 18 of 20 checklist items are confirmed on official pages; 2 are marked not confirmed, with the page to check.

Illinois 2027 employer checklist

1. Register for unemployment tax and withholdingBefore the first payroll.

2. Report new hires and check work eligibilityFor every hire, rehire and, where the state says so, contractor.

  • ConfirmedReport each new hire to the state

    Within 20 days of the employee's first day on the payroll.

    • Who: New hires, including independent contractors.
    • Independent contractors: yes, report them too. IDES says to report new hires including independent contractors.
    • How: online, fax, mail, electronic file. Fax 1-217-557-1947; mail to the Illinois New Hire Directory, 115 S. LaSalle St, Chicago, IL 60603-3820.

    Source: IDES: New Hires, checked November 2026 · More: First hire checklist for Illinois

  • ConfirmedWorkplace posters

    Illinois Department of Labor lists the required posters.

    Source: Illinois Department of Labor: Posters, checked November 2026 · More: First hire checklist for Illinois

  • ConfirmedE-Verify for private employers

    No state rule requires it, and neither the State nor any local government may require an employer to use E-Verify beyond what federal law requires. Effective: The current notice and limit rules took effect January 1, 2025 (Public Act 103-0879).

    Neither the State nor any of its political subdivisions, nor any unit of local government, including a home rule unit,
    • If skipped: A civil penalty of $2,000 to $5,000 for a first violation of the Act's E-Verify rules, with higher amounts for later violations.

    Source: Public Act 103-0879 (amends the Right to Privacy in the Workplace Act), Illinois General Assembly, checked November 2026 · More: Illinois E-Verify

3. Set pay at the minimum wage: January 1 and mid-yearCheck every hourly and tipped rate against the floor.

4. Paid sick leaveAccrual, limits and notice.

  • ConfirmedPaid sick leave

    Paid Leave for All Workers Act (820 ILCS 192). Yes: a statewide paid sick leave law covers private employers.

    • Accrual: At least 1 hour of paid leave for every 40 hours worked.
    • Yearly limit: Accrual may be limited to 40 hours in a 12-month period.
    • Small employers: Applies to employers of all sizes, including non-profits and religious organizations. School districts and park districts are excluded from the definition of employer.
    • Carryover: Unused accrued leave carries over each year, except where the employer front-loads the minimum, in which case it need not carry over.
    • Notice to employees: Employers must post the Department's notice in a conspicuous place and include it in any written handbook; first audit violations carry a $500 civil penalty and later ones $1,000.
    • When it can be used: Employees may begin using paid leave 90 days after their employment starts.

    Source: Paid Leave for All Workers Act FAQ (Illinois Department of Labor), checked November 2026 · More: Illinois paid sick leave

  • ConfirmedCity or county sick leave rules

    Paid Leave for All Workers Act FAQ (Chicago and Cook County)

    Source: Paid Leave for All Workers Act FAQ (Illinois Department of Labor), checked November 2026 · More: Illinois paid sick leave

5. Meal and rest breaksAdults and workers under 18.

6. Workers' compensationCoverage, posters and proof.

  • ConfirmedWorkers' compensation insurance

    Most employers must carry it. The page gives no headcount threshold.

    Illinois law requires most employers to provide workers' compensation insurance.
    • Owners and officers: Sole proprietors, partners, corporate officers and LLC members may exempt themselves, or come under the Act by insuring themselves.
    • Poster: Post a completed workers' compensation notice in a conspicuous place at every work site.
    • Check a policy: Search an employer's insurance coverage through the commission's lookup; it doesn't include employers in self-insurance pools. The Information Unit is at 866-352-3033.

    Source: Insurance Coverage (Illinois Workers' Compensation Commission), checked November 2026 · More: Workers' comp requirements by state

  • ConfirmedIf there's no coverage

    Up to $500 a day, with a $10,000 minimum, a possible work-stop order, and misdemeanor or felony charges against responsible officers.

    Source: Insurance Coverage (Illinois Workers' Compensation Commission), checked November 2026 · More: Workers' comp requirements by state

7. Final payWhen someone leaves.

  • ConfirmedFinal pay when you let someone go

    At separation if possible, and in no event later than the next regularly scheduled payday.

    in no event later than the next regularly scheduled payday

    Source: Illinois Department of Labor: Wage Payment and Collection Act FAQ, checked November 2026 · More: Final paycheck laws by state

  • ConfirmedFinal pay when an employee quits

    At separation if possible, and in no event later than the next regularly scheduled payday.

    in no event later than the next regularly scheduled payday
    • Unused vacation: Earned vacation is part of final compensation and is paid as its money equivalent.
    • If it's late: In a Department claim or a lawsuit, the employee can recover damages of 5% of the underpayment for each month it stays unpaid, plus costs and reasonable attorney's fees in court.

    Source: Illinois Department of Labor: Wage Payment and Collection Act FAQ, checked November 2026 · More: Final paycheck laws by state

8. Year-end W-2 and 1099 filingState copies, due in early 2027 for 2026 pay.

  • ConfirmedState copies of W-2s and 1099s

    IDOR: Forms 1099 other than 1099-K are not included in the electronic filing mandate, 'nor are they required to be submitted to Illinois.' Pub-110 adds that IDOR may request them and that payers may voluntarily file 1099s reporting Illinois withholding. Form 1099-K must be filed electronically with Illinois.

    • W-2s: January 31 (accepted by IDOR; next business day if it's a weekend or holiday)
    • Annual reconciliation: None: Illinois does not require an annual reconciliation return (Form IL-941 is filed quarterly), due Not applicable.
    • Electronic filing: W-2s, W-2c and W-2G must be filed electronically; without an approved waiver the penalty is $5 per form.

    Source: IDOR: Pub-110, Forms Filing and Storage Requirements (January 2024), checked November 2026 · More: 1099 and W-2 deadline finder

Key dates for 2027

Only the dates our files state. A date on a weekend or holiday is flagged, not moved, unless the agency's page says it moves.

DateWhatSource
Sunday, January 31, 2027
Unemployment tax report and payment for the fourth quarter of 2026
Falls on a Sunday. This is the date as the agency states it; check its rule for weekend due dates (see step 1).
Monday, February 1, 2027
W-2s accepted by IDOR
Monday, February 1, 2027
Form W-2 Copy A (with W-3) to SSA, and employee copies (federal)
Monday, February 1, 2027
Form 1099-MISC copies to payees (federal)
Monday, February 1, 2027
Form 1099-NEC to the IRS and to each payee (federal)
Monday, March 1, 2027
Form 1099-MISC to the IRS on paper (federal)
Wednesday, March 31, 2027
Form 1099-MISC to the IRS electronically (federal)
Friday, April 30, 2027
Unemployment tax report and payment for the first quarter of 2027
Saturday, July 31, 2027
Unemployment tax report and payment for the second quarter of 2027
Falls on a Saturday. This is the date as the agency states it; check its rule for weekend due dates (see step 1).
Sunday, October 31, 2027
Unemployment tax report and payment for the third quarter of 2027
Falls on a Sunday. This is the date as the agency states it; check its rule for weekend due dates (see step 1).

Still to confirm

Illinois kit

Illinois Employer Compliance Kit 2027

This checklist as a printable document with every source link and check date, a 2027 deadline calendar, a start-here guide, and an Excel workbook with a deadline tracker and new-hire and pay-change checklists, all built from the same data as this page.

Get the kit, $19 Or the 2027 Employer Compliance Bundle (7 Kits), $59

General information, not legal, tax or payroll advice. We are not lawyers, and MCC Solutions is not a law firm or a payroll service. Nothing here guarantees compliance. Rules change, cities and counties can add their own, and the agency's own page has the final word.

Common questions

What is the Illinois unemployment tax wage base for 2027?

Not confirmed in our data files. Check IDES: 2026 State Experience Factor and Employers' UI Contribution Rates (EA-50) (https://ides.illinois.gov/content/dam/soi/en/web/ides/ides_forms_and_publications/EA-50_2026.pdf). The latest published base is $14,250 per employee in 2026.

How soon must a Illinois employer report a new hire?

Within 20 days of the employee's first day on the payroll.

What is the Illinois minimum wage in 2027?

$15.00 an hour; no scheduled change in our data. No scheduled increase on the department's FAQ or the US DOL table.

Does Illinois require paid sick leave?

Paid Leave for All Workers Act (820 ILCS 192). Yes: a statewide paid sick leave law covers private employers. Accrual: At least 1 hour of paid leave for every 40 hours worked.

When is a final paycheck due in Illinois?

If the employer ends the job: At separation if possible, and in no event later than the next regularly scheduled payday. If the employee quits: At separation if possible, and in no event later than the next regularly scheduled payday.

Does Illinois require state W-2 or 1099 filing?

IDOR: Forms 1099 other than 1099-K are not included in the electronic filing mandate, 'nor are they required to be submitted to Illinois.' Pub-110 adds that IDOR may request them and that payers may voluntarily file 1099s reporting Illinois withholding. Form 1099-K must be filed electronically with Illinois. W-2s: January 31 (accepted by IDOR; next business day if it's a weekend or holiday) Annual reconciliation: None: Illinois does not require an annual reconciliation return (Form IL-941 is filed quarterly), due Not applicable.

Do Illinois employers need workers' comp?

Most employers must carry it. The page gives no headcount threshold.

Related: Employer compliance by state · 2027 changes for employers

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