Employer of Record for Wisconsin

In Wisconsin, workers’ rights are protected by numerous employment and labor laws, at both the state and federal level.  As a result, employees enjoy protection from discrimination based on age, religion, sexual orientation, gender, and race.Here are the key things you need to know about hiring in Wisconsin.

Do I need an EIN or Payroll Tax Number to Employ in Wisconsin

Employers in Wisconsin are required to obtain a Federal Employer Identification Number (EIN) and a Wisconsin withholding tax number if they plan to hire employees and withhold taxes. Registering for these numbers can be done through the Wisconsin Department of Revenue and is necessary for fulfilling tax obligations​.

Working Hours in Wisconsin

There are no specific state laws that govern the number of hours an adult employee can work; thus, federal standards typically apply. For minors, there are specific restrictions based on age, with required breaks for those under 18 working more than 6 consecutive hours​.

What Is Considered Full-Time Employment in Wisconsin?

Wisconsin does not specifically define full-time employment by hours. Therefore, the definition often depends on the employer’s policy or the standards set by federal laws, such as those used for benefits eligibility under the Affordable Care Act.

Probation Period in Wisconsin

Wisconsin does not mandate a specific probationary period for new hires. Employers are free to set their probation terms, commonly ranging from 30 to 90 days, depending on company policy​.

Minimum Wage in Wisconsin

As of 2025, Wisconsin's minimum wage is:

• $7.25 per hour.
• This rate is in line with the federal minimum wage, as Wisconsin does not have a state-specific minimum wage law.

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Read our Wisconsin average salary guide for more.

Wisconsin Anti-Discrimination Laws

In Wisconsin, the Fair Employment Act (WFEA) prohibits discrimination based on race, sex, age, disability, sexual orientation, and more. Employers must also comply with federal laws like Title VII (race, sex, religion, etc.), ADA (disability), and ADEA (age 40+). Additionally, Wisconsin’s Equal Pay Law mandates equal pay for equal work regardless of gender. Employers must also comply with federal laws. 

Overtime in Wisconsin

In Wisconsin, overtime follows the federal guidelines under the Fair Labor Standards Act (FLSA). Employees must receive 1.5 times their regular pay rate for any hours worked over 40 hours in a workweek. Unlike some states, Wisconsin doesn’t have a daily overtime rule,  overtime only kicks in once you hit that 40-hour threshold for the week.

Overtime Exemptions in Wisconsin

Not everyone is eligible for overtime, though. There are specific exemptions, and here’s how they break down:

• Salary Requirement: Employees who earn $1,128 per week (or $58,656 annually) are generally exempt from overtime. If an employee earns below this amount, they’re usually entitled to overtime pay.
• Duties Test: Even if an employee makes above the salary threshold, they still need to meet the duties test. This means their primary job responsibilities should be executive, administrative, or professional in nature. So, managers, supervisors, and specialized professionals may not be entitled to overtime.
• Licensed Professions: Certain licensed professionals – like lawyers, doctors, and teachers – are typically exempt from overtime, as long as their primary job duties align with those exemptions.

It’s super important for employers to get the classification right – incorrectly classifying employees can lead to penalties and other issues down the road.

When it comes to payroll in Wisconsin, employers (local and global) have flexibility in choosing the right payroll cycle for their business. Wisconsin state law doesn’t mandate a specific payroll frequency, the choice depends entirely on your organization’s policies and business needs. Whether you're paying employees weekly or monthly, what matters most is consistency and timely payments.

Payroll Cycle in Wisconsin

In Wisconsin, employers are free to choose their payroll cycle based on business needs. The most common payroll cycles used are:

• Weekly: Employees receive paychecks every week.
• Bi-weekly: Paychecks are issued every two weeks.
• Semi-monthly: Employees receive paychecks twice a month, typically on specific dates like the 1st and 15th.
• Monthly: Employees are paid once a month.

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Types of Payroll Taxes in Wisconsin

Payroll taxes in Wisconsin come in various forms, and employers need to stay on top of each one to ensure compliance. Here’s a quick rundown of the key payroll taxes you’ll need to manage:

• Federal Income Tax: Employers must withhold federal income tax from employees' wages, based on their W-4 form.
• Wisconsin State Income Tax: Employers must withhold state income tax based on the employee’s earnings and the state’s progressive tax brackets.
• Social Security Tax (FICA): Both employers and employees contribute 6.2% of the employee’s wages, up to the annual wage limit.
• Medicare Tax (FICA): Both employers and employees contribute 1.45% of the employee's wages; no wage limit for Medicare tax.
• Unemployment Insurance (UI): Employers contribute between 0.3% to 7.0% of the first $14,000 in wages per employee, depending on their experience rating.
• Workers’ Compensation Insurance: Rates vary based on the industry and risk level of the business.
• Local Taxes: Some localities may impose additional taxes, like Milwaukee's paid sick leave ordinance, which can impact payroll calculations.

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How to Comply with Wisconsin Payroll Taxes

Staying compliant with Wisconsin payroll taxes is crucial for your business's success, getting it wrong can lead to costly penalties. To make things easier, here’s a simple 6 step list to help you stay on track and avoid any issues:

1. Withhold Wisconsin State Income Tax: Use the WT-4 form to determine the withholding amounts based on employee earnings and filing status.
2. Pay Unemployment Insurance (UI): Employers must pay between 0.3% and 7.0% on the first $14,000 of each employee’s wages, depending on their claims experience.
3. Pay Workers’ Compensation Insurance: Employers must obtain insurance based on their industry’s risk classification. Ensure you’re paying the appropriate rate.
4. Report and Remit Taxes: Submit your quarterly reports to the Wisconsin Department of Revenue and the Department of Workforce Development. For federal taxes, use IRS Form 941.
5. Stay Updated: Tax rates and payroll regulations can change. Make it a habit to review updates from the Wisconsin Department of Revenue and the IRS to ensure you’re always compliant.
6. Leverage Payroll Software: Tools like Playroll can streamline your payroll process, ensuring that taxes are accurately calculated and paid on time.

Employers are required to make several tax contributions related to employment. These taxes include federal, state, and local obligations that help fund various programs such as unemployment benefits, social security, and other state-specific initiatives. Employers must withhold these taxes from employees' wages and make matching contributions for certain taxes.

Employer Tax Contributions

You and your employees are responsible for specific employment taxes that contribute to federal and state programs, supporting benefits such as unemployment insurance, disability, and healthcare. Here's a quick summary of employer-specific contributions:

Employee Payroll Tax Contributions

Your company will be subject to several payroll taxes, contributing to state programs and federal benefits. Here's a snapshot of what employee payroll tax contributions you need to be aware of:

Tax Due Dates in Wisconsin

In Wisconsin, the tax return deadline for individual income taxes is typically April 15 each year. If that date falls on a weekend or holiday, the deadline is extended to the next business day.

It should be noted that in the US, typical benefits such as vacation time, maternity leave, health insurance, etc. aren't legally required. However, it’s standard practice to offer them. As part of our global employment services, Playroll can create a globally compliant and competitive compensation package that can help you attract and retain top talent in the US.

Employee Benefits For Wisconsin

Competitive benefits are essential for attracting and retaining top talent in Wisconsin. Offering the right package helps employees feel valued and motivated. Our benefits experts understand the local labor market's trends, requirements, and expectations, ensuring your employees feel valued and supported. Common benefits in our Wisconsin packages include:

• Pension or 401(K)
• Vision Insurance
• Life Insurance
• Medical Insurance
• Dental Insurance
• Health Savings Plan (HSA)
• Flexible Spending Account (FSA)

Are Employers Required To Provide Health Insurance in Wisconsin?

In Wisconsin, employers are not required to provide health insurance unless they have 50 or more full-time equivalent employees. If they do, they must comply with the federal Affordable Care Act (ACA). For smaller employers (fewer than 50 employees), providing health insurance is optional. For smaller employers, health insurance is not mandated, though they may choose to offer it as a benefit.

Do Part-Time Employees Get Benefits in Wisconsin?

Part-time employees in Wisconsin are not automatically entitled to benefits like health insurance or paid leave, unless specified by their employer. There is no state law requiring benefits for part-time workers. However, part-time employees may qualify for benefits if their employer offers them, or if the employer has a policy that includes part-time workers. 

Are employers required to offer 401k in Wisconsin?

In Wisconsin, private retirement plans like 401(k)s are not mandatory for private-sector employees, but if offered, employers must comply with federal regulations like ERISA. Don’t forget about part-time employees!  The SECURE Act mandates that long-term, part-time employees (those working at least 500 hours per year for three consecutive years) must be allowed to contribute to their retirement plan, if your company offers one.

Is Vacation Leave Mandatory in Wisconsin?

In Wisconsin, there is no state law that requires employers to provide vacation leave (paid or unpaid). This means it’s up to the employer to decide if they want to offer vacation benefits to their employees. Some businesses may choose to provide paid or unpaid vacation as part of their employee benefits package, while others may not.

If you do decide to offer vacation leave as a voluntary benefit, your company can establish its own policies regarding how much vacation time employees receive, how it accrues, and whether it carries over from year to year.

What Are Mandatory Leave Entitlements in Wisconsin?

Below are the mandatory leave entitlements for full-time employees in Wisconsin.

Paid Time Off in Wisconsin

Wisconsin does not have a state law requiring employers to provide paid time off (PTO), including vacation or personal days. PTO is generally offered at the discretion of the employer, and companies may establish their own policies for vacation, sick leave, and personal days.

Maternity & Paternity Leave In Wisconsin

There is no state law in Wisconsin that mandates paid maternity leave. However, eligible employees may take time off under the Family and Medical Leave Act (FMLA) for the birth and care of a newborn child. The leave is unpaid, but employees are entitled to job protection during this time. There is no state mandate for paid paternity or maternity leave, but employers may offer paid time off at their discretion.

Sick Leave In Wisconsin

Wisconsin does not require employers to provide paid sick leave. Employees may use unpaid leave for illness under FMLA if they meet the eligibility requirements. Some municipalities in Wisconsin, like Milwaukee, have ordinances that mandate paid sick leave for workers, but this is not a statewide requirement.

Military Leave in Wisconsin

Under both federal law (via USERRA) and state law, employees who serve in the U.S. Armed Forces are entitled to leave for military service and job protection upon returning to work. Employers must provide unpaid leave for military duty and must reinstate employees in their previous roles or a similar one when they return, as long as the service did not exceed five years.

Jury Duty in Wisconsin

Wisconsin law requires employers to allow employees to take time off for jury duty. Employers are prohibited from firing or retaliating against employees who serve on a jury. Whether this leave is paid is at the employer’s discretion, as there is no state law mandating paid jury duty leave.

Voting Leave in Wisconsin

In Wisconsin, employers are required to provide paid leave for employees to vote in elections, but only under certain circumstances. If an employee's work hours conflict with the time polls are open, they are entitled to up to three hours of paid leave to vote. If the employee has sufficient time to vote either before or after their shift, however, the employer is not obligated to provide paid leave.

Domestic Violence Leave in Wisconsin

In Wisconsin, employees who are experiencing domestic violence can take unpaid leave to handle related situations, whether it’s seeking medical care, going to counseling, or taking other necessary steps. Employers must allow this leave without penalty, though it’s unpaid.

When it comes to terminating employment in Wisconsin, understanding the legal obligations regarding severance pay and contributions is essential. Below is a detailed overview of the key considerations for both employers and employees.

Termination Process in Wisconsin

The termination process is governed by the at-will employment doctrine, meaning that either the employer or the employee can end the employment relationship at any time, for any lawful reason, or for no reason at all. However, there are exceptions. Termination cannot occur based on discriminatory reasons such as race, gender, age, religion, or disability. Additionally, an employer cannot terminate an employee in retaliation for engaging in protected activities, such as filing complaints about workplace safety or discrimination.

Notice Period in Wisconsin

There is no legal requirement regarding a specific notice period before terminating an employee. Employers and employees are free to establish their own notice periods if outlined in an employment contract or company policy. If such terms exist, both parties must adhere to them.

Severance in Wisconsin

Wisconsin does not mandate severance pay upon termination. Severance is generally determined by company policy or individual employment contracts. If a severance package is offered, it is usually negotiable and may include severance pay or other considerations.