★★★★★ 5.0 from 100+ Google reviews

Payroll Services in Chicago, IL

End-to-end payroll for Chicago businesses and nonprofits. We run every pay cycle, file federal and Illinois payroll taxes, and keep you current with Chicago’s minimum wage and paid leave rules, all tied to your books and tax return.

Every pay cycle, handled

  • Direct deposit for employees and contractors
  • Federal 941 and Illinois IL-941 filed on time
  • IDES unemployment reports every quarter
  • Chicago minimum wage and paid leave tracked
  • W-2s and 1099s delivered by January 31
  • Payroll posted straight into your books
10+ yrstax and accounting experience
100+five-star Google reviews
Federal + ILevery payroll filing handled
Locala Chicago team you can call by name

Certified on the platforms our clients use

QuickBooks ProAdvisor Level 2 (Advanced) certifiedQuickBooks Payroll certified ProAdvisorXero Advisor certifiedAmbrook Advisor certifiedIntuit ProConnectIntuit QuickBooks
Chicago payroll

Payroll that follows Chicago rules, not just federal ones

Accurate payroll is essential for every organization, from a two-person shop to a growing multi-location company. In Chicago it is also unusually detailed. The city sets its own minimum wage and tipped wage, requires both paid leave and paid sick leave, and updates both every July. Illinois adds its own withholding, unemployment and new hire rules, and the federal filings sit on top of all of it.

National payroll software gives you a dashboard. Heard & Associates LLC gives you a local team that runs the payroll, files the taxes and answers the questions. Because we also handle bookkeeping and business tax returns, every paycheck lands in the right account in your books and lines up with your year-end return.

Running a smaller team? Our small business payroll service is built for owners with a handful of employees who want payroll off their plate.

Payroll services for Chicago businesses
Payroll, taxes and books togetherOne team, one set of numbers.
Services

Chicago payroll services we handle for you

One local team runs your payroll, files the payroll taxes and keeps the numbers tied to your books.

Payroll Processing

Weekly, biweekly or semi-monthly pay runs with direct deposit or checks, pay stubs, overtime, tips, bonuses and deductions calculated correctly every time.

Small business payroll →

Payroll Tax Filing

We deposit and file federal Form 941 and 940, Illinois IL-941 withholding and IDES unemployment reports on schedule, so notices and penalties stay off your desk.

Business tax preparation →

New Hires and Year-End

W-4 and IL-W-4 setup, Illinois new hire reporting, then W-2s for employees and 1099-NEC forms for contractors filed by January 31.

Bookkeeping services →

S Corp Owner Payroll

If you run an S corp, you need a reasonable salary on payroll. We set your owner pay, run it through payroll and match it to your 1120-S.

S corp tax preparation →

Nonprofit Payroll

Payroll for churches, charities and community groups, including clergy housing allowance and the payroll details that feed your Form 990.

Nonprofit accounting →

Payroll Problem Cleanup

Missed deposits, wrong withholding or a payroll notice from the IRS or IDES? We fix the filings, correct past quarters and respond for you.

IRS representation →
Local rules

Chicago and Illinois payroll rules we track for you

Chicago employers follow more than federal payroll law. The city sets its own minimum wage, which rises every July 1, and its own paid leave rules. As of July 1, 2026, most Chicago employers must pay at least $17.05 an hour and $12.96 an hour for tipped workers, and the revised Chicago Paid Leave and Paid Sick and Safe Leave rules took effect June 1, 2026.

Illinois adds its own layer: state income tax withholding at a flat 4.95%, quarterly IL-941 returns, IDES unemployment reports, new hire reporting within 20 days and paydays at least twice a month for most employees. Businesses with five or more employees and no retirement plan must also offer Illinois Secure Choice. Outside the city limits, the Illinois Paid Leave for All Workers Act applies instead. We build all of this into your payroll setup so nothing depends on you remembering it.

$17.05Chicago minimum wage per hour from July 1, 2026
$12.96Chicago tipped minimum wage per hour
40 + 40Hours of paid leave and paid sick leave for most Chicago workers each year
4.95%Flat Illinois income tax withheld from wages
Payroll calendar

The payroll filings a Chicago employer owes each year

Every one of these is on our calendar, not yours. Here is what gets filed, when, and where it goes.

Filing
What it covers
When it is due
Form 941
Federal income tax withholding, Social Security and Medicare
Quarterly, by the last day of the month after each quarter, with tax deposits made monthly or semiweekly
Form IL-941
Illinois income tax withheld from wages
Quarterly to the Illinois Department of Revenue, with withholding payments on your assigned schedule
IDES UI-3/40
Illinois unemployment insurance wages and contributions
Quarterly to the Illinois Department of Employment Security
Form 940
Federal unemployment tax (FUTA)
Annually by January 31, with deposits during the year when owed
W-2 and W-3
Employee wages and withholding for the year
To employees and the Social Security Administration by January 31
1099-NEC
Payments to independent contractors above the IRS reporting threshold
To contractors and the IRS by January 31
New hire report
Each new or rehired employee
To the Illinois New Hire Directory within 20 days of hire
Choosing a provider

What to look for in a Chicago payroll company

National payroll software runs the numbers. A local payroll accounting firm also answers the questions, owns the filings and ties payroll to your taxes.

Local rule knowledge

What to look forA provider that knows Chicago minimum wage, Chicago paid leave and Illinois filings, not just federal payroll.
At Heard & AssociatesWe work with Chicago and South Suburban employers every week and update your setup when city and state rules change.

A real person to call

What to look forSomeone who picks up the phone and knows your business, not a ticket queue or a rotating call center.
At Heard & AssociatesYou get a Chicago team you can call by name at (312) 810-3603, in person or online.

Payroll tied to your books

What to look forPayroll entries that land correctly in your accounting, so wages, taxes and benefits match at tax time.
At Heard & AssociatesWe post payroll to your books each cycle and use the same numbers for your business tax return.

Help when something goes wrong

What to look forA provider that responds to IRS, Illinois or IDES notices and fixes past mistakes, not just future pay runs.
At Heard & AssociatesWe correct past quarters, file amended returns and handle notices as part of our IRS representation work.
How it works

Switching your payroll to us

Most businesses move over in a single pay period, with no gap in paychecks.

1

Payroll review

We look at your current payroll, filings and any open notices, then confirm what needs to be set up or fixed.

2

Setup and accounts

We register or connect your IRS, Illinois Department of Revenue and IDES accounts and load employee pay and tax details.

3

First pay run

We run your first payroll with you, check every stub and confirm direct deposits and tax deposits went out.

4

Ongoing filings

Each quarter and year-end we file every return, post payroll to your books and flag rule changes before they hit.

Client reviews

Rated 5.0 by 100+ clients on Google

Chicago business owners trust us with their payroll, taxes and books. Here is what they say.

Getting started

What to have ready for payroll setup

Missing something? That is normal. We can request most of it for you.

  • Your EIN and Illinois account numbers
  • Employee W-4 and IL-W-4 forms
  • Pay rates, schedules and direct deposit details
  • Year-to-date payroll reports if switching mid-year
  • Recent Form 941 and IL-941 filings
  • Any IRS, Illinois or IDES letters

Switching mid-year? No problem.

We bring over year-to-date wages and taxes so your W-2s come out right in January, even if you changed providers in the middle of the year.

Already working with us on bookkeeping or taxes? Payroll plugs into the same records.

Book a payroll consultation →
FAQ

Chicago payroll questions

Have a question about your payroll? Call (312) 810-3603 and talk to our team.

Book a consultation →
How much does payroll cost for a small business in Chicago?

It depends on how many employees you have, how often you run payroll and whether you also need bookkeeping or tax filing. We give you a clear quote after a short consultation.

Do you handle payroll taxes as well as paychecks?

Yes. We calculate, deposit and file federal Form 941 and 940, Illinois IL-941 withholding returns and IDES unemployment reports, and we prepare W-2s and 1099-NEC forms at year-end.

What is the Chicago minimum wage in 2026?

As of July 1, 2026, the Chicago minimum wage is $17.05 an hour for most employers and $12.96 an hour for tipped workers. The rate changes each July 1, and we update your payroll when it does.

Do Chicago employers have to offer paid leave?

Yes. Most Chicago employees earn up to 40 hours of paid leave and 40 hours of paid sick leave each year under the city ordinance, which was updated on June 1, 2026. Outside Chicago, the Illinois Paid Leave for All Workers Act generally requires up to 40 hours.

What is Illinois Secure Choice and does it apply to me?

Illinois Secure Choice is a state retirement savings program. Employers with five or more employees that do not offer a retirement plan must enroll their workers. We help you register and handle the payroll deductions.

Can you switch my payroll over in the middle of the year?

Yes. We bring over your year-to-date wages and tax payments so quarterly returns and W-2s stay accurate, and most clients switch in one pay period.

Do you run payroll for S corp owners?

Yes. S corp owners who work in the business need a reasonable salary paid through payroll. We set it up, run it and match it to your S corp tax return.

Do you work with businesses outside Chicago?

Yes. We serve Chicago from our Hyde Park office, the South Suburbs from Olympia Fields and businesses across Illinois online.

Ready to hand off payroll?

Book a payroll consultation and we will review your current setup, flag any compliance gaps and show you how we would run it.