Trusted Employer of Record Services in Illinois

Expanding and managing your workforce in Illinois requires careful attention to payroll, legal compliance, and HR management. That’s where HR Options comes in to help your business with specialized employer of record (EOR) services. We simplify hiring and ensure full compliance with state employment laws.

Our expert team handles everything, from talent acquisition to onboarding, to streamline your business operations and minimize legal risks. We also have an advanced online platform that offers real-time updates and transparent reporting to keep you informed at every step.

You can count on our professionals to handle payroll, benefits administration, tax compliance, and administrative tasks. Contact us today to build a winning team and grow your business with freedom!

Trusted HR Solutions for Your Business in Illinois

Navigating the hiring process and managing employment logistics in Illinois can be challenging, but the HR Options team makes it easier. Our EOR experts support businesses of all sizes by handling every aspect of recruitment and compliance. Whether you need temporary staff or a long-term workforce, we ensure a smooth and compliant hiring experience. Our HR solutions include:

On-boarding
Off-boarding
Payroll Processing
Tax compliance
Timesheet collection
Handling W-2 and 1099 form management
Managing employee benefits
Employee Relations & HR support
Full-service workforce administration

Valuable Benefits for Employees in Illinois

Loyal employees are the backbone of your business success! At HR Options, we create competitive benefits packages to help Illinois businesses attract top talent and keep teams motivated. We can collaborate with your business to create a customized package that aligns with your goals and policies to ensure a supportive and rewarding workplace for employees. Our benefits plans may include:

Life Insurance
Medical Insurance
Vision Insurance
Dental Insurance
Long-Term Disability Insurance (LTD)
Health Savings Account (HSA)
Flexible Spending Account (FSA)
Pension or 401(k) Retirement Plans

Essential Employment Information for Illinois

Looking for reliable employer-of-record services in Illinois? Here’s some essential employment information we think you should know:

What is the Minimum Wage Rate in Illinois?

As of 2025, the minimum wage in Illinois is $15.00 per hour for most workers. However, the minimum wage in Chicago is $16.20 per hour for employers with 21 or more employees and $15.00 per hour for smaller businesses. These wages are subject to annual increases to keep up with the cost of living.

Illinois also has different wage structures for tipped employees and workers in specific industries. For example, tipped workers have a lower base wage, but their earnings and tips meet the standard minimum wage.

What is Considered Full-Time Employment in Illinois?

In Illinois, employees who work 35 to 40 hours per week are typically considered full-time. The Affordable Care Act (ACA) defines full-time workers as those who work at least 30 hours per week. However, Illinois labor laws do not provide a strict legal definition, and employers can set their policies regarding work hours, benefits eligibility, and overtime pay. Employees should review their company’s policies to avoid misunderstandings.

What is Considered Part-Time Employment in Illinois?

Part-time employment in Illinois generally refers to roles where employees work fewer than 30 hours per week. While part-time employees may not always qualify for benefits like health insurance or retirement plans, some businesses offer perks such as flexible schedules or pro-rated benefits to attract and retain talent.

What Are the Overtime Pay Rules in Illinois?

Illinois follows the federal Fair Labor Standards Act (FLSA), which requires employers to pay 1.5 times the regular hourly rate for any hours worked beyond 40 in a week. However, certain positions may be exempt from overtime based on job duties or industry regulations. Employees should review their employer’s overtime policies to ensure they receive fair compensation for extra hours worked.

How Long Does Onboarding Take in Illinois?

In Illinois, our onboarding process typically takes two business days after receiving all the required information. For non-U.S. citizens, work eligibility verification may take up to three additional days. Our Employer of Record service experts ensure a smooth process to help businesses get new employees up and running quickly.

What is the Payroll Cycle in Illinois?

Illinois law requires employers to pay employees at least twice per month. Most employees typically receive payments on set dates, such as the 15th and the last day of the month. These payments are equal in amount and cover completed work.

Are Employers Required to Offer 401(k) in Illinois?

Yes, Illinois law requires certain employers to provide a retirement savings plan for their employees. Businesses can offer qualified retirement plans or enroll employees in the state-sponsored Illinois Secure Choice Program.

This program applies to businesses that:

Have at least five employees
Have been registered for at least two years
Do not already provide a qualified retirement plan

The Illinois Secure Choice Program automatically deducts a portion of employees’ wages into a Roth IRA to help them save for retirement.

Are Employers Required to Provide Health Insurance in Illinois?

According to the federal Affordable Care Act (ACA), employers with 50 or more full-time employees must offer health insurance benefits. Many businesses also offer supplemental health insurance options to ensure employees can access routine care and emergency coverage. As a trusted employer-of-record service provider, we ensure all employees get the same benefits to maintain fair hiring practices.

Details of New Hire
Paperwork Requirements in Illinois

When hiring employees in Illinois, employers must collect several essential documents to comply with both state and federal regulations. These forms ensure smooth onboarding and legal compliance. Below are the required documents:

Employment Eligibility Verification (Form I-9)

Employers must complete Form I-9 to verify the new hire’s identity and work eligibility in the United States. The employer must complete this verification form within three days of the employee’s start date.

Employee’s Withholding Certificate (Form W-4)

This federal form determines the exact amount of federal income tax withholding from an employee’s paycheck. Employees must complete it upon hire to ensure proper tax deductions.

Illinois Employee’s Withholding Certificate (Form IL-W-4)

The IL-W-4 form helps calculate the amount of Illinois state tax to withhold. Employees must complete it to specify their additional allowances and specific tax adjustments.

New Hire Reporting Program

Employers must report all new hires and rehires to the Illinois Department of Employment Security (IDES) within 20 days of the employee’s start date. The report should include the employee’s full name, address, Social Security number, and hire date.

W-9 Form (For Independent Contractors)

If your business hires independent contractors, you must provide a W-9 form. This form collects tax identification details such as the contractor’s Social Security number (SSN) or Employer Identification Number (EIN) to allow proper tax reporting.

Work Opportunity Tax Credit (WOTC Form)

This optional federal form provides tax credits to employers who hire individuals from certain groups, such as veterans and ex-felons.

Additional Recommended Documents

Direct Deposit Form

If a company offers direct payroll deposits, this form helps employees provide their banking information for seamless payments.

Employment Contract

This contract outlines the terms of employment if required by the company.

Job Offer and Description

It provides the employee with a written copy of the job offer and a detailed job description.

Benefits Enrollment Form

If offering benefits, employers should provide forms for health insurance, retirement plans, and other applicable benefits.

Emergency Contact Form

Collects information about whom to contact in case of an emergency involving the employee.

Confidentiality and Non-compete Agreements

These agreements are applicable, especially in industries involving sensitive information or intellectual property.

Employment Taxes in Illinois

Employment taxes and statutory fees affect Illinois employees’ overall payroll. Here’s a clear breakdown of known taxes in this state:

Employer Taxes

Employment Tax	Tax Percentage
FICA (Medicare)	1.45%
FICA (Social Security	6.2%
State unemployment insurance tax (SUTA)	0.75% to 7.85%
Federal unemployment insurance tax (FUTA) (charged on the first $7,000 earnings per year of an employee)	6%

Employee Taxes

Tax Type	Tax Percentage
FICA (Medicare)	1.45%
FICA (Social Security	6.2%
Federal income tax	10% to 37%
State income tax	4.95%

Important Leave Laws in Illinois

Leaves Title	Law
Bereavement Leave	Employers with 50+ employees must provide leave for the loss of a family member, pregnancy-related loss, adoption, surrogacy, or fertility treatment. Additional leave may apply for child loss due to suicide or homicide. All employers must provide leave for bereavement activities related to domestic violence or violent crimes.
Paid Sick Leave	In Illinois, no state law requires employers to provide paid sick leave. However, under the Family and Medical Leave Act (FMLA), eligible employees can take up to 12 weeks of unpaid sick leave if they have worked for the same employer for at least 12 months.
Blood/Organ/Bone Marrow Donation Leave	Employers must provide leave for blood and organ donation, including bone marrow donation.
Crime Victims' Leave	All employers must provide leave for employees who are victims of violent crimes.
Court Attendance/Witness Leave	Illinois employers must provide leave for employees serving as witnesses in criminal proceedings.
Domestic/Sexual Violence Victims' Leave	All employers must grant leave for employees affected by domestic violence or sexual assault.
Election Officials' Leave	Employers with 25+ employees must provide leave for election officials. Small businesses may offer time off for employees to vote in elections.
Family and Medical Leave	All employers must allow employees to use personal sick leave benefits (if provided) for a family member’s illness, injury, or medical appointment.
Family Military Leave	Employers with 15 or more employees must provide leave for family military activities.
Jury Duty Leave	Under the state law, employers must allow employees to serve on jury duty. They cannot penalize or terminate employees for fulfilling their civic duty.
Legislative/Political Leave	No state law in Illinois requires employers to grant leave for legislative or political activities. However, employers can provide paid or unpaid leave for such activities based on company policies.
Military Service/Veterans' Leave	All employers must provide leave for military service, and employers with 15+ employees must also provide leave for Civil Air Patrol service.
School Activities/Visitation Leave	Employers with 50+ employees must provide leave for school activities or visitation.
Volunteer Emergency Responder Leave	All employers must allow leave for volunteer emergency responders.
Voting Leave	Illinois law requires all employers to grant leave to employees to vote in elections.

Comprehensive Employment Termination Details

Probation Period

In Illinois, no state law requires a probation period for new employees. However, many employers implement trial periods to assess an employee’s performance and suitability. These periods typically range from 3 to 6 months, depending on the company's policies.

Termination Protocol

Illinois follows the "at-will" employment doctrine, which means the employer or employee can terminate employment at any time, with or without cause. However, terminations cannot be discriminatory or retaliatory, as state and federal laws protect employees from wrongful termination. Employers must also comply with the Illinois Human Rights Act and other applicable laws.

Notice Period

Employers or employees are not legally required to give notice before ending employment unless specified in a contract. However, it is common practice for employees to offer a two-week notice period when resigning.

Severance and Final Pay

In Illinois, severance pay is not required unless mentioned in an employment contract or company policy. However, employers must pay any unused vacation or paid time off (PTO) as decided.

Which Laws Apply to Your Organization?

In the United States, each state has its own laws governing the relationship between employers and employees. Businesses must comply with these regulations to ensure security and avoid penalties. At HR Options, our EOR specialists help you navigate and adhere to state and federal employment laws that apply to your organization. Here are some of the key regulations that may affect your business in Illinois:

Law	Applies To	Description
Illinois Human Rights Act (IHRA)	Employers with 15+ employees	This law prohibits discrimination based on race, color, religion, national origin, disability, age, sex, sexual orientation, marital status, military status, and other categories.
Equal Pay and Opportunities Act	All employers	Mandates equal pay for men and women performing similar work. However, exceptions are allowed for seniority or merit systems.
Pay Transparency Law	Employers with 15+ employees	Requires employers to include salary ranges in job postings and prohibits retaliation against employees discussing wages.
Minimum Wage Law	All employers	As of 2025, this law sets the state minimum wage at $15 per hour and $9 per hour for tipped workers in Illinois. However, Chicago has a higher minimum wage rate of $16.20 per hour.
Overtime Pay Law	All employers	It requires overtime pay of 1.5 times the regular wage for non-exempt employees working over 40 hours per week.
Illinois Paid Leave for All Workers Act	All employers	This act requires employers to provide up to 40 hours of paid leave per year that employees can use for any reason.
Pregnancy Accommodation Law	Employers with 1+ employees	Requires employers to provide reasonable accommodations for pregnancy, childbirth, and related conditions, including time off and modified duties.
Wage Payment and Collection Act	All employers	Protects employees from wage theft, ensures timely payment of wages, and provides recourse for unpaid wages.
Workers' Compensation Law	Employers with 1+ employees	Provides compensation for employees who suffer work-related injuries or illnesses, including medical benefits and wage replacement.
Meal Breaks Law	Employers with non-exempt employees	Under this law, employees can take a 20-minute unpaid meal break after working 7.5 hours or more. They can get additional breaks for longer shifts.
Jury Duty Leave Law	All employers	Employers must provide leave for employees serving on jury duty and cannot penalize them for their service.
Right to Organize	Employers with a unionized workforce	According to this law, employees can organize and join a union, collectively bargain, and participate in labor actions without retaliation.
Occupational Safety and Health Act (OSHA)	All employers	Requires employers to maintain a safe workplace by eliminating health hazards and ensuring employee safety under the strict state regulations in Illinois.
Family Medical Leave Act (FMLA)	Employers with 50+ employees	Under the FMLA, employees with serious illness or family issues can get up to 12 weeks of unpaid leave with job protection.
Smoke-Free Illinois Act	All employers	Prohibits smoking in enclosed workplaces and public spaces to promote a smoke-free environment.
Crime Victim Leave Law	All employers	Provides unpaid leave for employees who are victims of crime to attend legal proceedings.
Voting Leave Law	All employers	Employers must allow employees to take leave to vote in elections.
Illinois Sick Leave Act (Accrual)	Employers with 1+ employees	Illinois law states that employees can use their accrued sick leave for family members' medical needs. Employees earn one hour of paid leave for every 40 hours worked, with a maximum accrual of 40 hours per year.
Illinois Child Labor Law	Employers with 20+ employees	This law restricts work hours, occupations, and conditions for minors under 16.
Illinois Family Bereavement Leave Act	Employers with 50+ employees	Under this law, employees can get up to 10 days of unpaid leave for the death of a child, spouse, parent, or other covered family members.
Illinois Whistleblower Act	All employers	Protects employees from retaliation for reporting illegal activities or unsafe workplace conditions.
Wage Theft Prevention Act	All employers	This act protects employees from wage theft by requiring employers to provide written notice of pay rates and work hours.
Illinois WARN Act (Worker Adjustment and Retraining Notification Act)	Employers with 75+ employees	It requires 60 days' advance notice for mass layoffs, plant closings, or large workforce reductions.
Illinois Secure Choice Retirement Savings Program	Employers with 5+ employees	Employers who don’t offer a retirement plan must enroll employees in a state-qualified retirement savings plan unless the employee opts out.

Want to Streamline Your Hiring Process?

Contact our HR specialists for the most reliable employer-of-record services and HR solutions to hire top talent and grow your business.