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Payroll Information for Chicago area Small Businesses

Chicago Payroll Information

Chicago Employers Payroll Tax

The Employers’ Expense Tax applies to businesses that employ 50 or more full-time workers or employees that perform 50% or more of their work service per calendar quarter in the City of Chicago. Employees must earn more than $4,300 in a calendar quarter to be considered taxable.

Tax Base: $4.00 per employee per month

Exemptions, Deductions and Credits: The Employers’ Expense Tax does not apply to:

  • Domestic service in a private home
  • Newspaper delivery when the individual is under the age of 18 years
  • Employees who are immediate family (Father, Mother, Spouse, Son or Daughter)
  • Insurance Company Personnel
  • Not for Profit, Educational and Charitable Organizations
  • Agricultural Labor
  • Independent Contractors
  • Partners

Read more about Chicago Employers’ Expense Tax
2011 Employers’ Expense Tax Form