Wisconsin Payroll Compliance
Every rate, wage base, and threshold Wisconsin employers need for 2026 — sourced from the Dept. of Revenue and DWD — including the progressive bracket system and Schedule D SUI rates.
Minimum Wage & Hours
Wisconsin’s minimum wage sits at the federal floor of $7.25/hour with no state-level increase enacted or scheduled. No local jurisdiction sets a higher rate. Wisconsin does have its own state overtime statute, requiring 1.5× pay for hours over 40 — mirroring federal FLSA but applying under state law independently.
| Item | 2026 Value | Notes |
|---|---|---|
| State minimum wage | $7.25/hr | Matches the federal FLSA floor |
| Tipped cash wage | $2.33/hr | Wisconsin-specific; lower than the federal $2.13 |
| Opportunity wage | $5.90/hr | Under-20 employees, first 90 days |
| Overtime rule | 40 hrs/week | State overtime statute mirrors federal FLSA |
| Local wage ordinances | None | No Wisconsin locality sets a separate rate |
State Income Tax Withholding
Wisconsin uses four progressive brackets from 3.50% to 7.65%, with a standard deduction that phases out based on income. The deduction disappears entirely for higher earners, effectively raising their marginal rate.
| Item | 2026 Value | Notes |
|---|---|---|
| Bracket 1 | 3.50% | Up to ~$14,680 (single) |
| Bracket 2 | 4.40% | ~$14,680 – $29,360 |
| Bracket 3 | 5.30% | ~$29,360 – $323,960 |
| Bracket 4 (top) | 7.65% | Above ~$323,960 |
| Standard deduction | Phases out | Disappears above ~$73,000 of income (single filer) |
| Required certificate | Form WT-4 | Wisconsin-specific; includes age/blind and HOH allowances |
| Local income tax | None | No Wisconsin municipality imposes one |
| Reciprocity | IL, IN, KY, MI | Residents of these states may be exempt from WI withholding |
Paid Leave
Wisconsin has no state disability insurance, no mandatory paid family/medical leave, and no statewide paid sick leave. Federal FMLA is the only baseline, plus Wisconsin’s own Family and Medical Leave Act (WFMLA), which applies at a lower threshold (25+ employees in the state) with 2 weeks of medical leave and 6 weeks of family leave — but is unpaid.
Unemployment Insurance (SUI)
Wisconsin’s SUI runs on Schedule D for 2026, with a $14,000 taxable wage base and rates from 0.00% to 12.00%. New employers pay 3.05% (or 3.25% for payrolls above $500,000), with construction employers at a separate lower entry rate.
| Item | 2026 Value | Notes |
|---|---|---|
| SUI wage base | $14,000 | Per employee, per year |
| Tax schedule | Schedule D | Per Wis. Stat. § 108.18 |
| New employer (<$500K payroll) | 3.05% | Non-construction |
| New employer (>$500K payroll) | 3.25% | Higher-payroll tier |
| Construction new employer (<$500K) | 2.50% | Different from most states where construction pays more |
| Experienced range | 0.00% – 12.00% | Widest possible spread; best employers can hit 0% |