Illinois paycheck calculator employers use for hourly paychecks
The paycheck calculator from Beyond, available at the top of this page, makes it easy to double-check your calculations for hourly employees and ensure they receive the correct take-home pay. If you are rewarding your team members with bonuses and looking for a simple way to get the numbers right, our Illinois bonus tax calculator is also well worth a closer look.
How is Payroll Different for Hourly and Salaried Employees?
At the end of the day, the fundamental act of running payroll is quite similar for any type of employee. You begin with their gross wages (or how much money they’ve earned in a given pay period) and then withhold local, state, and federal payroll taxes, plus any additional payroll deductions for things like health benefits, retirement plans, or garnishments.
The journey from gross wages to net wages (or take-home pay) does not change much. The primary difference between payroll for hourly and salaried employees lies in how you calculate those gross wages in the first place.
Gross Wages for Hourly Employees
For workers whose compensation is based on the amount of time they work, you calculate their gross wages by multiplying the number of hours they worked during a pay period by their hourly pay rate.
This is generally straightforward, but a number of states have overtime laws that can increase employees’ pay rate if they work more than a certain number of hours in a day or in a week (typically 8 hours/day or 40 hours/week). Be sure to account for these specific rules when calculating paychecks for hourly workers.
Gross Wages for Salaried Employees
For employees who are paid an annual salary, gross pay is calculated by dividing their annual salary by the number of pay periods in a year. For instance, if an employee earned an annual salary of $100,000, this is what their gross wages would be for different pay periods (assuming there are no other pre-tax deductions):
| Pay Schedule | Gross Wages (based on $100k salary) |
| Weekly (52 pay periods/year) | $1,923.08 |
| Bi-Weekly (26 pay periods/year) | $3,846.15 |
| Bi-Monthly (24 pay periods/year) | $4,166.67 |
| Monthly (12 pay periods/year) | $8,333.33 |
Built for Business Owners
After using the paycheck calculator that Illinois employers trust, you may be looking for ways to simplify running payroll and other back-office tasks. Beyond is a top-rated online payroll service trusted by businesses across the U.S., with features designed to make the payroll process and administrative work less of a heavy lift.
Who Should Be Salaried and Who Should Be Paid Hourly?
When hiring an employee, employers have some flexibility in choosing who is paid hourly and who is paid a salary. Typically, employees whose hours are fixed (or consistent), and those at higher compensation levels, are offered a salary. Employees at lower compensation levels whose hours are more variable tend to receive an hourly paycheck.
However you choose to handle compensation, there are specific rules that must be followed—most notably the rules for exempt and non-exempt employees under the Fair Labor Standards Act (FLSA). In short, the FLSA mandates that employees should be entitled to overtime pay when they work more than 40 hours in a week, unless they are “exempt” and fit into one of these categories:
– They are an executive
– They offer skilled professional services
– They have administrative or management responsibilities
– They are highly compensated (earning more than $151,164 per year in 2025)
– They are a computer programmer or analyst
– They have an outside sales role
There are several other small exceptions. Take a closer look at the classification of exempt and non-exempt employees or reach out to an employment or tax professional if you have more questions.
Getting from Gross Wages to a Paycheck
Once you have determined the gross wages, it is time to calculate the actual payroll by withholding federal, state, and local payroll taxes and applying any other deductions that might apply to an employee. This process essentially works the same for all employees, whether they are salaried or hourly. See more on how to set up payroll if you want to really get into the specifics.
Further Information for Illinois Employers
Finished using the paycheck calculator that Illinois employers rely on? Here is more information you can use:
State Minimum Wage: $15.00 per hour in 2025.
Is Workers’ Comp a requirement? Yes, for most employers. Learn more in our guide on Illinois workers’ comp.
New Hire Reporting Required? Yes.
2025 SUI (State Unemployment Insurance) Rate Taxable Wage Base: $13,916.
– Rates range from 0.75% to 7.85%.
– Tax rate for new employees: 3.65%.
This article (and the mentioned paycheck calculator tool) is provided for informational purposes only and should not be relied on for tax, legal, or accounting advice. You should consult your own tax, legal, and accounting advisors for formal consultation and final payroll numbers.