Article
3 min read
Your Ultimate Guide to Wisconsin Payroll
Author
Anja Simic
Published
August 22, 2023
Last Update
August 16, 2024
Table of Contents
Paying unemployment insurance
Withholding personal income tax from your Wisconsin employee
Payroll tax due dates
Submitting Wisconsin payroll taxes
Paying your Wisconsin workers’ compensation
Determining the need for company registration in Wisconsin
Simplify US payroll tax compliance with Deel
Key takeaways
- In Wisconsin, employers are required to withhold personal income tax, workers' comp, and unemployment insurance.
- Worker's compensation is procured through a qualified commercial carrier that meets state coverage standards.
- The nature of your business activities will determine if you need to register the company after your first hire.
Employers have to navigate a variety of regulations and requirements to ensure proper payroll withholding in each US state. This guide serves as an introduction to what employers need to pay and withhold from payroll in Wisconsin, including unemployment insurance, personal income tax, and workers' compensation.
Paying unemployment insurance
On top of withholding federal taxes such as Medicare and Social Security taxes, you are also responsible for withholding and paying certain Wisconsin state taxes from your employee’s payroll. These taxes together are referred to as employer payroll taxes or payroll withholding. One of the taxes that you will need to pay is Unemployment Insurance.
Unemployment insurance is a nationwide program overseen by the US Department of Labor, providing temporary financial assistance to individuals who find themselves unemployed through circumstances beyond their control. Unemployment insurance is the responsibility of the employer. You can manage your unemployment insurance contribution through an online portal. For more details, refer to the Wisconsin Department of Workforce Development website.
The State Unemployment Insurance (SUI) tax rates for new employers vary based on the industry and total payroll. Here’s how the rates are structured:
| Employer Type | Payroll Less Than $500,000 | Payroll Greater Than $500,000 |
|---|---|---|
| Construction Industry | 2.90% | 3.10% |
| All Other Industries | 3.05% | 3.25% |
Withholding personal income tax from your Wisconsin employee
In addition to federal tax withholdings, employers in Wisconsin must withhold specific state taxes from their employees' paychecks. These collective taxes are referred to as employer payroll taxes or payroll withholdings.
Personal income tax, sometimes called individual income tax or state income tax, is levied on the income of Wisconsin residents. As an employer, it's your responsibility to deduct this tax from your employees' wages and remit it to the state. You can manage these withholdings through an online portal. For more detailed information on how to process and pay the withheld amount, visit the Wisconsin Department of Revenue dedicated page.
Wisconsin's individual income tax rates vary based on marital status and income. Here’s a breakdown of the rates for different filing statuses:
Tax Rates for Single Taxpayers, Head of Household, Estates, and Trusts
| Income Range | Tax Rate |
|---|---|
| Up to $13,810 | 3.50% |
| $13,810 to $27,630 | 4.40% |
| $27,630 to $304,170 | 5.30% |
| Over $304,170 | 7.65% |
Tax Rates for Married Taxpayers Filing Jointly
| Income Range | Tax Rate |
|---|---|
| Up to $18,420 | 3.50% |
| $18,420 to $36,840 | 4.40% |
| $36,840 to $405,550 | 5.30% |
| Over $405,550 | 7.65% |
Tax Rates for Married Taxpayers Filing Separately
| Income Range | Tax Rate |
|---|---|
| Up to $9,210 | 3.50% |
| $9,210 to $18,420 | 4.40% |
| $18,420 to $202,780 | 5.30% |
| Over $202,780 | 7.65% |
Nonresidents and part-year residents must prorate their taxes based on the ratio of Wisconsin income to federal adjusted gross income.
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Payroll tax due dates
Wisconsin has specific due dates for filing payroll taxes, which depend on the filing frequency:
| Filing Frequency | Due Date |
|---|---|
| Annual | January 31 |
| Quarterly | Last day of the month following the quarter |
| Monthly | Last day of the following month |
| Semi-monthly | Last day of the month or the 15th of the following month |
Due dates are adjusted if they fall on a weekend or legal holiday.
Submitting Wisconsin payroll taxes
Employers in Wisconsin must file electronically using various methods such as My Tax Account, third-party software, Telefile, ACH Credit, or WT-6 file transmission. Here are the specifics:
- Quarterly, Monthly, and Semi-monthly Filers: Must file an electronic deposit report (Form WT-6) even if no tax is withheld.
- Annual Filers: Report their withholding on a WT-7 form.
Paying your Wisconsin workers’ compensation
It's important to remember that in Wisconsin, even if you only have one employee, you are still required to provide workers' compensation insurance in addition to payroll taxes.
Workers' compensation insurance safeguards employees in case of work-related injuries. Employers typically secure this insurance from a qualified commercial carrier within the state. Wisconsin State offers resources to help you identify suitable carriers through their platform. Choosing workers' compensation insurance that meets state coverage standards is crucial for protecting your employees and your business.
| Benefit Type | 2024 Maximum Rate | Additional Details |
|---|---|---|
| Temporary Total Disability | $1,944 per week | Applicable for injuries on or after January 1, 2024 |
| Permanent Total Disability | $1,944 per week | Applicable for injuries on or after January 1, 2024 |
| Death Benefits | $1,944 per week | Applicable for injuries on or after January 1, 2024 |
| Permanent Partial Disability | $645 per week | Applicable for injuries on or after January 1, 2024 |
| Maximum Annual Wage | $97,200 | Applicable for all compensation types |
| Maximum Monthly Rate for Spouse | $5,616 | Maximum monthly payment to spouse |
| Maximum Payment from Children's Fund | $561.60 per month | Maximum monthly payment from children's fund |
| Maximum Daily Rate | $216 | Daily rate for applicable benefits |
| Maximum Monthly Rate for PPD Only | $1,898 | Monthly rate for Permanent Partial Disability only |
Wisconsin companies on average will pay 10.5% less in worker's compensation insurance rates starting Oct. 1, 2024
Determining the need for company registration in Wisconsin
Determining whether your company needs to register with the state of Wisconsin upon hiring the first employee depends on the nature of your business activities and whether they align with legal definitions. Seek legal counsel to ensure compliance with state laws.
FAQs
What are the basic components of Wisconsin payroll taxes?
Wisconsin payroll taxes include state income tax, Social Security tax, Medicare tax, and unemployment taxes (both state and federal). Employers are responsible for withholding these taxes from employee wages and paying them to the appropriate agencies.
How do I determine the amount of state income tax to withhold from an employee's wages?
The amount of state income tax to withhold depends on the employee's earnings, their tax filing status, and the number of allowances claimed on their WT-4 form (Wisconsin’s equivalent of the federal W-4 form). Employers can refer to the Wisconsin withholding tax tables or use the online withholding tax calculator provided by the Wisconsin Department of Revenue.
Are there any local taxes that need to be withheld in Wisconsin?
No, Wisconsin does not have any local city or county income taxes that need to be withheld from employees' wages. All state residents and workers are subject only to state and federal income taxes.
What is the rate for Wisconsin unemployment tax for new employers?
For new employers, the Wisconsin unemployment tax rate is generally set at a standard rate for the first three years. As of the latest updates, this rate is 3.05% on the first $14,000 of each employee's earnings. This rate can vary, so it's important to check with the Wisconsin Department of Workforce Development for the most current rate.
What forms do I need to file for Wisconsin payroll taxes?
Employers need to file Form WT-6 (Withholding Tax Deposit Report) for submitting state income tax withholdings. For unemployment taxes, Form UCT-101 (Employer's Quarterly Contribution Report) is used.
Can I file and pay Wisconsin payroll taxes online?
Yes, Wisconsin encourages employers to file and pay payroll taxes online through the Wisconsin Department of Revenue and Wisconsin Department of Workforce Development websites. This method is faster and often more convenient than paper filing.
What should I do if I missed a payroll tax payment or filing deadline in Wisconsin?
If you miss a deadline, it's important to file and pay as soon as possible to minimize penalties and interest. Contact the Wisconsin Department of Revenue or the Department of Workforce Development to explain the situation and seek guidance on how to proceed.
Are there any exemptions from Wisconsin payroll taxes?
Certain types of payments and some nonprofit organizations may be exempt from Wisconsin payroll taxes. It’s advisable to consult with a tax professional or contact the state agencies directly to understand any specific exemptions that may apply to your situation.
How do I register as a new employer in Wisconsin for payroll tax purposes?
New employers in Wisconsin need to register with both the Wisconsin Department of Revenue for withholding taxes and the Wisconsin Department of Workforce Development for unemployment taxes. This can typically be done online through the respective department websites.
Continuous Compliance™
Simplify US payroll tax compliance with Deel
While this guide provides essential information on Wisconsin payroll taxes, payroll compliance, and state requirements extend beyond what is covered above. To streamline the process and ensure full compliance, companies can turn to Deel.
Deel offers a comprehensive solution for managing US and international payroll, including payments, taxes, worker classification, and more. Speak with an expert today to see how you can streamline your US payroll processes and ensure compliance with state regulations.
Disclaimer: This article is provided for general informational purposes and should not be treated as legal or tax advice. Consult a professional before proceeding.
About the author
Anja Simic is a passionate advocate for remote work and leveling the playing field for diverse talents worldwide. She’s the Director of Content Marketing at Deel. As a content marketing professional, she thrives on shaping impactful narratives through different formats such as long-form content, webinars, and newsletters (to name a few).
