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Employers' Expense Tax (7540)

  

 NOTE:

The Employers' Expense Tax was repealed effective 1-1-2014.  Final returns for the 2014 tax year were due 8-15-2014.

Municipal Code Reference: 3-20
CAPS Code Reference: 1002920051901
Tax Return Form Code: Form 7540
Procedure:

The Employers' Expense Tax applied to businesses that employed 50 or more full-time workers or employees that performed 50% or more of their work service per calendar quarter in the City of Chicago. Employees must earn more than $4,300 in a calendar quarter to be considered taxable.

Tax Base: $2.00 per employee per month ($4.00 prior to 7-1-2012)
Exemptions, Deductions and Credits: The Employers’ Expense Tax did not apply to:
  • Domestic service in a private home
  • Newspaper delivery when the individual is under the age of 18 years
  • Employees who are immediate family (Father, Mother, Spouse, Son or Daughter)
  • Insurance Company Personnel
  • Not for Profit, Educational and Charitable Organizations
  • Agricultural Labor
  • Independent Contractors
  • Partners
Rulings and Procedures:

Employers' Expense Tax Ruling 1: Tips as part of Wages
Employers' Expense Tax Ruling 2: Unitary Business Group as "Employer"

Employers' Expense Tax Relief Ordinance

Employers' Expense Tax Relief Ordinance FAQ's

Employers' Expense Tax Relief Issues