Easily manage employment in Wisconsin

Payroll management in Wisconsin

Wisconsin has a strong economy supported by industries such as manufacturing, healthcare, agriculture, and technology. With state-specific payroll regulations, including a progressive state income tax and unemployment insurance requirements, employers in Wisconsin must ensure compliance with both state and federal payroll laws. Understanding these regulations is crucial for smooth payroll operations and compliance.

Payroll breakdown in Wisconsin

Employers in Wisconsin must adhere to both federal and state payroll regulations regarding wages, taxes, and benefits. Below is an overview of key payroll components:

Minimum wage and overtime

• Minimum wage: Wisconsin follows the federal minimum wage of $7.25 per hour, as the state has not set a higher minimum wage.
• Tipped employees must be paid a minimum of $2.33 per hour, with tips making up the difference to meet the standard minimum wage.
• Overtime rules:
• Wisconsin follows federal overtime laws, requiring employers to pay 1.5 times an employee’s regular rate for hours worked beyond 40 hours in a workweek.
• Some exemptions apply based on job classification and industry.

State income tax

• Wisconsin has a progressive state income tax system, with rates ranging from 3.54% to 7.65%, depending on income levels.
• Employers must withhold state income tax and remit it to the Wisconsin Department of Revenue.

Unemployment insurance (UI) tax

• Employers must contribute to Wisconsin’s Unemployment Insurance (UI) program, managed by the Wisconsin Department of Workforce Development (DWD).
• The UI wage base in Wisconsin is $14,000.
• UI tax rates vary based on an employer’s experience rating and range from 0% to 12%.
• New employers typically pay a 3.05% UI tax rate.

Workers’ compensation

• Wisconsin law requires all employers with three or more employees to carry workers’ compensation insurance to cover medical expenses and lost wages for employees injured on the job.
• Some exceptions apply, including certain agricultural and domestic workers.

Payroll tax filing and payment deadlines

• Employers must register for a Wisconsin Withholding Tax Account with the Wisconsin Department of Revenue.
• State withholding tax returns must be filed monthly, quarterly, or annually, depending on employer classification.
• UI tax reports must be submitted quarterly to the Wisconsin Department of Workforce Development (DWD).
• Payroll tax payments can be made electronically through the Wisconsin My Tax Account online portal.

Quick facts: Important considerations for employers

• State minimum wage compliance: Wisconsin follows the federal minimum wage of $7.25 per hour.
• Final paycheck rules:
• If an employee is terminated, employers must provide the final paycheck by the next scheduled payday.
• If an employee resigns, the final paycheck must be provided by the next scheduled payday.
• New hire reporting: Employers must report new hires to the Wisconsin New Hire Reporting Center within 20 days.
• Paid sick leave: Wisconsin does not require employers to provide paid sick leave, but employers may choose to offer it as a benefit.
• Payroll recordkeeping: Employers must maintain payroll records for at least three years to comply with state and federal laws.
• Right-to-work state: Wisconsin is a right-to-work state, meaning employees cannot be required to join a union as a condition of employment.

Run payroll in Wisconsin with Remote

Managing payroll in Wisconsin requires careful attention to state-specific regulations, including minimum wage compliance, UI tax requirements, and workers’ compensation laws. Employers must stay informed about tax rates, wage laws, and reporting deadlines to ensure smooth payroll processing and avoid penalties.

The good news is, you can pay anyone, anywhere — from your team in the office to your team abroad, all with Remote Payroll. To see just how easy global payroll can be, book a demo with Remote today.