Payroll Wisconsin Unique Aspects of Wisconsin Payroll Law and Practice
Below is a MRR and PLR article in category Business -> subcategory Other.
Unique Aspects of Wisconsin Payroll Law and Practice
Overview
Wisconsin's payroll system features several unique laws and regulations. This article covers essential aspects such as tax withholding, unemployment insurance taxes, wage and hour laws, and child support withholding.
Wisconsin State Income Tax
The Wisconsin Department of Revenue manages state income tax collection and reporting. Employers can use the Federal W-4 form or the "WT-4, Employee's Wisconsin Withholding Exemption Certificate/New Hire Reporting" for state tax withholding.
Tax Treatment of Benefits
- Cafeteria Plans: Not taxable for income tax or unemployment insurance.
- 401(k) Deferrals: Not taxable for income tax but are taxable for unemployment purposes.
Supplemental Wages Tax Rates
- Under $7,970: 4.6%
- $7,970 - $15,590: 6.15%
- $15,590 - $115,140: 6.5%
- Over $115,140: 6.75%
Magnetic Media Filing
If you have at least 250 employees and file federal W-2s electronically, you must do the same for Wisconsin state W-2s.
Unemployment Insurance
Managed by the Department of Workforce Development, the taxable wage base is $10,500. Employers must use magnetic media for quarterly wage reporting if they have 100 or more employees. Records must be kept for at least six years.
Wage and Hour Laws
The minimum wage is $5.15 per hour. Overtime for non-FLSA employers is 1.5 times the regular rate after 40 hours per week. Wage records must be retained for three years.
New Hire Reporting
Employers must report new hires and rehires with the following information within 20 days:
- Employee's name, address, birth date, social security number, and hire date
- Employer's name, address, and Federal Employer Identification Number (EIN)
Payment Regulations
- Pay Frequency: No less than monthly, with specific rules for final paychecks.
- Direct Deposit: Required but must comply with federal Regulation E.
- Pay Stub Information: Must include amounts and reasons for deductions.
Child Support Withholding
The Department of Workforce Development oversees child support orders. Deductions must start within a week of receiving an order and payments sent within five days of payday. A termination notice must be sent within ten days. The maximum administrative fee is $3 per payment, and withholding limits follow federal CCPA rules.
Additional Considerations
- Escheat Laws: Unclaimed wages must be sent to the state after one year, with records maintained for five years.
- Tip Credit: No more than $2.82 may be used as a tip credit.
- Rest Breaks: Only minors under 16 must receive a 30-minute rest after working six hours.
This summary captures key elements of Wisconsin payroll laws. Stay updated, as regulations can change.
You can find the original non-AI version of this article here: Payroll Wisconsin Unique Aspects of Wisconsin Payroll Law and Practice.
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