![]() How to Submit Your Wisconsin Payroll Taxesīefore withholding, filing, or paying any tax for your Wisconsin payroll, you need to have your business registered with the relevant state departments and have all employees in the state’s new hire reporting system. So, your responsibility for this employee is $427 for the year ($14,000 x 0.0305). You calculate your unemployment tax for them based on $14,000, disregarding the other $38,000 they earn.Īs a new employer with a payroll of $300,000, your unemployment tax rate is 3.05%. The employee earning $52,000 a year earns more than the wage base of $14,000. The wage base for Wisconsin is $14,000, so you’ll only pay unemployment tax on the first $14,000 each employee makes each year. Wisconsin’s unemployment tax for new employers with a payroll less than $500,000 is 3.05% or 3.25% with a payroll of $500,000 or more.Īfter you move out of new employer status, Wisconsin will assign you a new rate, which may vary each year between 0% and 12%. That means you don’t need to withhold anything from employee paychecks for this tax, but you must still file and pay this tax on your own. But unlike withholding tax, Wisconsin’s unemployment tax is paid only by employers, not employees. State unemployment tax goes toward the state’s unemployment program that pays employees when they’re out of work. Wisconsin also has an unemployment tax that you’ll need to pay as part of your payroll taxes. If they get paid biweekly, they earn $2,000 per paycheck, so their income tax withholding for Wisconsin would be $106 per paycheck ($2,000 x 0.053). Their income puts them into the 5.3% tax bracket. Let’s use an example of an employee making $52,000 per year. ![]() You’ll need to withhold the amount required for your employees, which could vary by employee if you have different types of earners. Most people in Wisconsin fall into the 5.3% tax bracket for earnings between $27,630 and $304,170. Single filers making $13,810 or less get taxed at 3.50%, while those making $304,170 or more get taxed at the highest rate of 7.65%. Wisconsin has four tax brackets with tax rates ranging from 3.50% to 7.65%. If you pay biweekly, you’ll withhold this tax 26 times a year-once for each pay period. To do that, you’ll need to withhold the tax from your employees’ paychecks for each pay period. This tax technically comes out of each employee’s paycheck, although its amount varies based on the employee’s tax bracket.īut ultimately, you, the employer, are required to file and pay this tax with Wisconsin. Wisconsin withholding income tax is better known as state income tax. Wisconsin doesn’t have local income taxes for employers to withhold and pay.īefore setting up your business to handle Wisconsin payroll, read the following guide to learn everything you need to know. Unemployment tax does not come out of paychecks instead, it’s only paid by employers. Income tax is also known as withholding tax because employers withhold it from employee paychecks before filing and paying it to the state. Wisconsin employers need to pay income tax and unemployment tax for each employee they have.
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