Family Caregiver Taxes and Employment in Illinois

When you employ a family member as your household caregiver in Illinois, your caregiver's age and/or their relationship to you may mean certain federal and Illinois taxes apply a little differently. We've broken down these differences below — along with the state-specific employment requirements you'll want to know — so you always know what's going on with your employee's payroll.

Tax exemptions

Requirements and rates vary by state and are subject to change. The information below is current as of 2026.

Federal taxes

FICA (Social Security and Medicare) and FUTA (Federal Unemployment Tax) may apply a little differently based on your caregiver's age and family relationship to you.

Caregiver relationship	FICA (Social Security and Medicare)	FUTA (Federal Unemployment)
A minor under 18 who isn't your child	Exempt (until age 18)	Applies
Your child, currently under 21	Exempt (until age 21)	Exempt (until age 21)
Your spouse	Exempt	Exempt
Your parent	Usually exempt (see parent-childcare exception)	Exempt

When your caregiver passes one of the age thresholds, we'll automatically update how their wages are taxed based on the information in your account, and email you in advance. For the full federal breakdown, see How federal tax exemptions work for family caregivers.

Illinois state taxes

Illinois Unemployment Insurance (UI) follows the federal family caregiver exemption with one important difference: the child age cutoff is under 18, not under 21. Illinois has no state PFML program and no state SDI program.

Caregiver relationship	Illinois UI
A minor under 18 who isn't your child	Applies
Your child, currently 18–20	Applies (IL cutoff is under 18)
Your child, currently under 18	Exempt
Your spouse	Exempt
Your parent	Exempt

Illinois state income tax withholding generally applies to caregivers regardless of family relationship (current as of 2026; rules subject to change).

Employment requirements

Quick overview

For spouse, parent, and adult child caregivers, Illinois generally applies standard household employment rules. Most special handling is driven by minor-employment laws (work permits, meal breaks, minor wage rate), not family relationship.

Requirements by relationship

Where you see "Standard rules" in the table below, family caregivers follow the same rules as any other household employee — no family-specific carve-out applies.

Requirement	Spouse	Parent	Your child <18	Your child <21	Non-family minor <18
Minimum wage	Standard rules	Standard rules	Minor rate: $13.00/hr (current as of 2026; check IL DOL for updates)	Standard rules	Minor rate: $13.00/hr (current as of 2026; check IL DOL for updates)
Overtime	Standard rules	Standard rules	Standard rules	Standard rules	Standard rules
Day of rest	Standard rules	Standard rules	Standard rules	Standard rules	Standard rules
Workers' comp	Standard rules	Standard rules	Standard rules	Standard rules	Standard rules
Paid Leave for All Workers Act	Standard rules	Standard rules	1 hr paid leave per 40 hrs worked	Standard rules	1 hr paid leave per 40 hrs worked
Sick time	Standard rules	Standard rules	Covered under IL Paid Leave Act	Standard rules	Covered under IL Paid Leave Act
Meal breaks	Standard rules	Standard rules	Minors <18: 30-min unpaid meal break required	Standard rules	Minors <18: 30-min meal break required
Recordkeeping and work permits	Standard rules	Standard rules	Minors <16 (often <18): work permit required	Standard rules	Work permit required
Posting	Standard rules	Standard rules	Standard rules	Standard rules	Standard rules

Disclaimer: This information is provided for general educational purposes and should not be considered tax, legal, financial, or human resources advice.