Unemployment Tax

Unemployment Compensation Taxes
An unemployment compensation tax is applied to the first $12,960 in wages paid to each employee annually. A “new employer” rate applied for the first 3 years of operation: after 13 months experience in Illinois, an “experience-adjusted” rate is calculated. When an employed has been in business in Illinois at least 13 months, but less than 36 months, that employer pays the higher of the two rates; after 36 months, the employer plays its “experience-adjusted” rate” The 2017 New Employer rate is 3.45 percent. Adjusted rates may vary from 0.7 percent to 8.6 percent. Employers who have incurred liability for the payment of contributions within each of the three or more years immediately preceding 2009 will qualify for a variable rate based on their individual experience: Determine the Benefit Ratio, Multiply the Benefit Ratio by the State Experience Factor, and Add the Product to the Fund Building Rate. 

For more information: Illinois Department of Employment Security

Historical Unemployment Tax Rate Information – State of Illinois

Year
Taxable Wage Base
Min. Tax Rate
Max. Tax Rate
Standard Rate
Small Employer Rate
(gross wages under $50,000)
2017 $12,960 0.55% 7.35% 3.45% 5.4% 
2015 $12,960 0.55% 8.15% 3.75% 5.4%
2009 $12,300 0.6% 6.8% 3.1% 5.4%
2008 $12,000 0.8% 7.2% 3.4% 5.4%
2007 $11,500 1.0% 8.2% 3.9% 5.4%
2006 $11,000 1.1% 8.9% 4.2% 5.4%
2005 $10.500 1.2% 9.8% 4.7% 5.4%
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