Chicago · Payroll & Tax
Restaurant Payroll & Tax in Chicago, IL
FORCS handles restaurant payroll and tax in Chicago — the $16.60 minimum wage, the One Fair Wage tip-credit phase-out and its 2026 pause, plus the 10.25%-plus sales tax and downtown MPEA food-and-beverage tax filed reconciled to your POS.
Chicago is actively phasing out its tipped subminimum wage under the One Fair Wage ordinance — a moving target no static payroll setup keeps up with. The City Council paused the next step for two years in May 2026, so the tipped cash wage holds at $12.96 against a $16.60 minimum, but the schedule marches toward full elimination for larger employers by 2030. Get the tip-credit math wrong across a busy staff and the back-wage exposure adds up fast.
Payroll is where Chicago restaurants face the most moving risk. The city’s $16.60 minimum wage sits on top of a tip credit that is actively being phased out under the One Fair Wage ordinance — and that schedule already shifted once in 2026 when the Council paused the next step for two years. One misconfigured tip credit, multiplied across a busy staff and applied at a stale rate, becomes a real liability.
FORCS runs Chicago restaurant payroll and tax the right way: tip-compliant, tracked against the current phase-out step, integrated with your POS and scheduling, and reconciled straight into your books. We also file your 10.25%-plus sales tax — including the downtown MPEA tax where it applies — and keep your year-end clean for your CPA, so payroll and tax stop being a source of risk.
We run tip-compliant payroll and sales-tax filings for Chicago restaurants every pay cycle.
What's included
- Payroll processing. Accurate, on-time payroll across hourly, salaried and tipped staff, integrated with your POS and scheduling.
- Tips & tip-credit management. Tip reporting, tip-credit calculations and allocated tips handled correctly to keep you compliant.
- Labor & benefits reporting. Labor cost broken out by location and role so you can manage your second-biggest expense.
- Sales tax & filings. Sales tax and applicable local filings prepared and filed on schedule so you avoid penalties.
- Payroll tax compliance. Federal, state and local payroll taxes calculated, withheld and remitted correctly.
- Year-end tax prep for your CPA. Clean, organized year-end financials handed off so your CPA can focus on strategy.
Other services in Chicago
Payroll & Tax in Chicago — FAQs
What is the tipped minimum wage in Chicago in 2026?
Chicago's minimum wage is $16.60 an hour. Under the One Fair Wage ordinance the tip credit is being eliminated, but the City Council paused the next increase for two years in May 2026 — so the tipped cash wage holds at $12.96 for now. We handle the cash-wage-plus-tip-credit calculation correctly every payroll.
How does the One Fair Wage phase-out affect my payroll?
The tip credit shrinks on a set schedule until it disappears — currently targeted for 2030 for larger employers and later for smaller ones — and the timeline has already shifted once in 2026. We track each step and adjust your tipped cash wage automatically so you're never paying an outdated rate.
Do you file my Chicago restaurant's sales tax?
Yes. We prepare and file the 10.25%-plus combined sales tax and the Chicago Restaurant Tax on your prepared-food sales, plus the 1% MPEA food-and-beverage tax if you're downtown, reconciled to your POS and on schedule — accurate and penalty-free.
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