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Wisconsin Wage and Payroll Tax Facts

February 02, 2024

Having to comply with unique state taxes and wage laws can make processing payroll doubly daunting. Here’s everything you need to know about these rates and laws for the state of Wisconsin.

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Table of Contents

  1. Wisconsin Minimum Wage Rates
  2. Wisconsin State Income Tax (SIT) Rates
  3. Wisconsin State Unemployment Insurance (SUI) Rates
  4. Wisconsin State Disability Insurance (SDI) Rates
  5. Miscellaneous Wisconsin Tax Information
  6. Wisconsin Employer Registration
  7. Additional Wisconsin Payroll Tax Resources

Wisconsin predominantly uses the same minimum wage rate requirements as the federal government’s Fair Labor Standards Act (FLSA). There is one exception though, for employees who are under the age of 20, whereby employers can pay an “opportunity wage” during the first 90 days of employment. In such cases, the state allows employers to use a lower than normal wage rate. 

When it comes to processing payroll, Wisconsin-based organizations must handle the following taxes in addition to those required by the federal government:

The below information was last updated January 31, 2024. It is not intended as legal or tax advice.

Wisconsin Minimum Wage Rates

Wage Type

Wisconsin Rates

Federal Rates

Minimum Wage

 $7.25*

$7.25

Tipped Minimum Wage

 $2.33

$2.13

Actual Tip Credit

 $4.92

$5.12

*Opportunity employees may be paid $5.90 per hour.

Wisconsin State Income Tax (SIT) Rates

Wisconsin's SIT is progressive, meaning it adjusts based on the income level of the employee paying the tax:

Income Tax Bracket
[Over X] - [But not over Y]

2024 Income Tax Rate

$0 – $12,760

3.54% of excess over $0

$12,760 – $25,520

$451.70 + 4.65% of excess over $12,760

$25,520 – $280,950

$1,045.04 + 5.30% of excess over $25,520

$280,950 or greater

$14,582.83 + 7.65% of excess over $280,950

 

Additional Wisconsin SIT Details

Valid Filing Statuses
  • S = Single
  • M = Married

Exemptions
  • Military service members in a combat zone
  • Certain farm workers
  • Employees working for foreign governments
  • Ministers
  • Newspaper deliverers under age 18 and news dealers/newspaper and magazine sellers to ultimate consumers, if certain requirements are met
  • Services not in the course of employer's business, to the extent not paid in cash
  • Employees earning tips paid in a medium other than cash or that are less than $20 per month
  • County fair employees
  • Employees who prepaid the tax
  • Employees with no tax liability
  • Employees covered by reciprocity (IL, IN, KY & MI)
  • Persons employed by interstate carriers
  • Residents working outside the U.S. may be exempt due to tax treaty
  • Persons with low earnings
  • Wages paid to election workers for services performed in national, state, county, and municipal elections

Form W-4

 Form WT-4

Reconciliation Frequency

Annual

Wisconsin State Unemployment Insurance (SUI) Rates

SUI provides unemployment benefits to eligible workers who are unemployed through no fault of their own (as determined by state law) and meet the state’s eligibility requirements.

Wisconsin SUI Tax Details

Taxable Wage Base

$14,000

Employee Subject to Tax

No

Rates for Experienced Employers

0.00% - 12.00%

Rates for New Employers
  • 3.05% (employers with a taxable payroll of less than $500,000)
  • 3.25% (employers with a taxable payroll of $500,000 or greater)

Effective Period

Calendar Year

Voluntary Contributions Allowed

Yes; must be received by November 30.

Wisconsin State Disability Insurance (SDI) Rates

SDI benefits are funded by employees through mandatory payroll deductions from each paycheck. Wisconsin, however, doesn't require employers to collect an SDI tax.

Miscellaneous Wisconsin Tax Information

Reciprocal Agreement(s)

Reciprocal agreements are when workers who live and work in different states are only required to pay taxes to the state where they live. Wisconsin currently has reciprocal agreements with the following states:

  • Illinois
  • Indiana
  • Kentucky
  • Michigan

Employees residing in these states must complete a Form W-220 to declare their status as a nonresident working in Wisconsin. 

Paid Sick Leave (PSL) Taxes

The state of Wisconsin doesn’t require employers to collect PSL taxes, nor does the state have a program providing such leave to employees.

Paid Family and Medical Leave (PFML) Taxes

The state of Wisconsin doesn’t require employers to collect PFML taxes, but it does require protected, unpaid leave for certain employees under its Family and Medical Leave Act (FMLA).

Wisconsin FMLA Details

Covered Employees

All who have worked for a covered employer for at least 52 consecutive weeks and at least 1,000 hours in the prior 52-week period

Covered Employers

All who have at least 50 permanent employees during at least 6 of the prior 12 months

Maximum Leave

Up to 2 weeks

FAQs

Wisconsin Employer Registration

The agencies below can help with your state-based employer registration, including best practices, account numbers, and unemployment information. Contact the Department of Revenue for withholding tax topics or the Department of Workforce Development for unemployment tax topics.

Registration Details

Department of Revenue

 Department of Workforce Development

Phone

 (608) 266-2776 (608) 261-6700

Online Registration

 My Tax Account Page DWD New Employer Registration

Registration Form

 Form BTR-101 Form UTC-1-E

Registration Instructions

 Online and paper registration options are available. Account numbers are issued in 2 days via the online process or in 2-3 weeks via mail. Online and paper registration options are available. Account numbers are issued during the online process or in 1 week via mail.

Employer Self-Service Login

 My Tax Account Page DWD Login Page

Additional Wisconsin Payroll Tax Resources

 

This information is provided as a courtesy and may be updated at any time. It is not intended as legal or tax guidance. If you have questions or concerns, we encourage you to seek the advice of a qualified CPA, tax attorney, or advisor.

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