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.
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:
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 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 only pay taxes in the state where they live, not the state where they work. Michigan 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)
The state of Wisconsin doesn’t require employers to collect tax for paid sick leave, nor does the state have a program providing paid sick leave to employees.
Family and Medical Leave (FMLA)
The state doesn’t require employers to collect a tax for its Family and Medical Leave Act (FMLA) program, but it does provide such protected, unpaid leave for certain employees.
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.
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.
Get Taxes Done Right, Without the Stress
We know there's a lot that goes into preparing and filing payroll tax forms. Save time and get support from our expert team. As a Registered Reporting Agent with the IRS, we can help prepare and file all the necessary forms you need to remain compliant - even in the face of changing legislation. Learn more here.
