Employee Cost: Illinois vs Washington (2026)

Side-by-side comparison of employer costs, payroll taxes, SUTA rates, and workers' comp.

At a $60,000 salary

Illinois saves $1,138/employee/year

$65,720 in Illinois vs $66,858 in Washington

Illinois

$65,720

1.1x salary

Washington

$66,858

1.11x salary

Cost Breakdown Comparison

Based on $60,000 annual salary

Cost Component IL WA Diff
Base Salary $60,000 $60,000
Social Security (6.2%) $3,720 $3,720
Medicare (1.45%) $870 $870
FUTA (0.6%) $42 $42
SUTA (State Unemployment) $374 $1,050 -$676
Workers' Compensation $714 $888 -$174
State-Mandated Insurance $0 $288 -$288
Total Employer Cost $65,720 $66,858 -$1,138

Tax Rate Comparison

Rate Illinois Washington
SUTA Rate Range 0.5% – 6.75% 0.2% – 5.8%
SUTA Typical Rate 2.75% 1.75%
SUTA Wage Base $13,590 $67,600
Workers' Comp Rate 1.19% 1.48%
State Income Tax Yes No
Paid Family Leave Not required 0.48%

What This Means for Employers

For a business hiring at a $60,000 salary, choosing Illinois over Washington saves $1,138 per employee per year in employer-side payroll costs alone. For a team of 10, that's $11,383 annually.

The biggest difference comes from SUTA (state unemployment tax) — Illinois charges 2.75% vs Washington's 1.75%. Note that federal taxes (Social Security, Medicare, FUTA) are identical in both states.

These numbers reflect employer-side costs only and don't include benefits, overhead, or the employee's own tax burden. Use the interactive Employee Cost Calculator to model different salary levels and benefits packages.

Cost Comparison at Different Salary Levels

How the gap changes from $30K to $150K

Salary IL Total WA Total Difference
$30,000 $33,068 $33,450 -$382
$40,000 $43,952 $44,586 -$634
$50,000 $54,836 $55,722 -$886
$60,000 $65,720 $66,858 -$1,138
$75,000 $82,046 $83,433 -$1,387
$100,000 $109,256 $110,835 -$1,579
$125,000 $136,466 $138,238 -$1,772
$150,000 $163,676 $165,640 -$1,964

Click any amount to see the full cost breakdown for that salary and state. Amounts shown from the perspective of IL.

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