Illinois

Employer Costs, Take-Home Pay, and Tax Wedge for an
Average Manufacturing Wage Worker in ILLINOIS


	Annual
	Amount	Rank


Total Cost to Employer*	$30,872	25

Take-Home Pay	$22,346	28
Take-Home Pay, % of Employer Costs	72.4%	24

Tax Wedge*	$8,526	22
Tax Wedge, % of Employer Costs	27.6%	21

Gross Earnings	$27,200

Taxes Withheld from Worker's Paycheck
Social Security/Medicare Payroll Tax	$2,081
Federal Income Tax	$2,048
State Income Tax	$726	24
	-----------
Total Taxes Withheld	$4,854

Hidden Taxes Paid by Employer on Worker's Behalf
Social Security/Medicare Payroll Tax	$2,081
Workers' Compensation Contribution	$1,292	25
State Unemployment Insurance Tax	$243	17
Federal Unemployment Insurance Tax	$56
	-----------
Total Employer-Paid Taxes	$3,672

Employer-Paid (hidden) Share of the Tax Wedge	43.1%	24


Source: Dean Stansel, "The Hidden Burden of Taxation: How the Government Reduces
Take-Home Pay," Cato Institute Policy Analysis No. 302, April 15, 1998.
*Total cost to employer does not include the cost of fringe benefits (such as employer contributions to private health insurance plans and pensions) and tax and regulatory compliance. The tax wedge does not include the host of other taxes--property taxes, sales taxes, gas taxes, cigarette taxes, etc.--that workers must pay with their remaining take-home pay.