How do I register as a household employer in Illinois?

Start with a federal EIN, then register with Illinois for each account that applies to you. Apply for a federal EIN at IRS.gov. It is free and takes about 15 minutes. Register with Illinois's unemployment insurance agency once you cross $1,000 in any calendar quarter. Most states want this within 20 days of becoming a covered employer. If you will withhold Illinois income tax at your nanny's request, register separately with the state revenue department for a withholding account.

What payroll taxes does Illinois charge for a household employee?

Federal FICA and FUTA, Illinois SUTA, and anything else below that applies to you. Federal FICA: 7.65% employer share, matched by your nanny. Federal FUTA: 6.0% on the first $7,000, an effective 0.6% after the state SUTA credit. Illinois SUTA: 0.75% - 7.05% on a state-specific wage base, with a separate rate for new employers. State income tax withholding is optional unless your nanny elects it on the state W-4.

What are Illinois's minimum wage and overtime rules for nannies?

At least $15.00 an hour for a nanny in Illinois. That is Illinois's own minimum wage, above the federal $7.25 floor. Some cities and counties may set a higher floor, so check your locality before you set a rate. Overtime is 1.5x pay for hours over 40 in a week, under the FLSA. Live-in nannies are exempt from FLSA overtime, but not from minimum wage. Source: US DOL, State Minimum Wage Laws.

Can I require my nanny to use direct deposit in Illinois?

No. Illinois does not let an employer require direct deposit, so your nanny has to opt in. Illinois requires that authorization in writing. Federal Regulation E sets the floor, and Illinois adds an employee-consent rule on top.

What records do I need to keep for a Illinois household employee?

Keep them for at least 4 years after the return reporting the tax was due, or the tax was paid, whichever is later. Timesheets, pay stubs, W-2 copies, payment confirmations and SUTA filings. Illinois follows the federal baseline, so 4 years covers both. Most household-employer audits open with the IRS or a state agency asking for exactly these records, so keep them with your tax filings. Source: IRS Publication 926.

All State Guides

Illinois Nanny Tax Guide

Illinois has a flat income tax of 4.95% with a personal exemption that reduces taxable income. The state's $15.00 minimum wage is above the federal level.

Illinois household employer quick facts

Applies in Illinois

State income tax withholding
State unemployment

Not in Illinois

Disability insurance
Paid family leave

Minimum Wage

$15.00/hour

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SUTA Rate Range

0.75% - 7.05%

New employers: 3.35% on the first $14,250 (2026). Illinois Department of Employment Security (IDES)

Key things to know

Flat state income tax of 4.95%
State minimum wage is $15.00/hour
Personal exemption of $2,925
No state disability or paid family leave program, but paid leave is required: 1 hour per 40 hours worked, up to 40 hours a year, more in Chicago

Illinois Employer Requirements

State Income Tax

Illinois uses a flat 4.95% income tax rate. A personal exemption of $2,925 reduces taxable income. The state uses exemptions rather than standard deductions.

State Unemployment Insurance

Employers pay SUI tax on the first $14,250 of wages. New employer rate is 3.35%, with 2026 rates ranging from 0.75% to 7.05% based on experience.

Workers' Compensation

Illinois requires workers' compensation once the people you employ in your home together work 40 or more hours a week, for 13 or more weeks in a calendar year. Two part-time caregivers at 20 hours each reach it together. Below that it's optional, but still worth considering for the protection it gives you both.

Illinois household employer questions

What will it cost?

Wondering what you'll actually owe as a Illinois employer? Adjust the numbers below to get a quick estimate of your annual tax obligations.

This guide is for informational purposes only and should not be considered legal or tax advice. Tax laws change frequently. Always verify current requirements with your state's tax agency or consult with a qualified tax professional.

Verified accurate as of June 2026Sources: Illinois tax agency, IRS Publication 926

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Illinois Nanny Tax Guide

Illinois household employer quick facts

Illinois Employer Requirements

State Income Tax

State Unemployment Insurance

Workers' Compensation

Illinois household employer questions

What will it cost?

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