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REMOTE EMPLOYEES

Hiring a remote employee in Wisconsin

Your company is in another state and one employee lives and works from home in Wisconsin. Which state's taxes apply, unemployment, paid leave and Wisconsin's employer rules, each with its official source.

Facts from the official sources listed at the end of this page; the oldest was read from an archived copy dated July 31, 2026. For employers. General information, not legal or tax advice: confirm a rule with the agency before you rely on it.

Wisconsin at a glance

Income tax
Wisconsin withholding
Reciprocity
With Illinois, Indiana, Kentucky and Michigan
Unemployment
$14,000 wage base, 3.05% to 3.25% new employer
Paid leave
None
New hire report
Within 20 days

Which state's taxes apply

Work state
Wisconsin taxes wages for work done in Wisconsin. Withhold Wisconsin income tax on the employee's wages.Source: Wisconsin DOR, Publication W-166, Withholding Tax Guide (1/26, PDF) (opens in a new tab), checked October 5, 2026
Withholding form
Form WT-4Source: Wisconsin DOR, Publication W-166, Withholding Tax Guide (1/26, PDF) (opens in a new tab), checked October 5, 2026
Reciprocity
If your office is in Illinois: Wisconsin residents working there are withheld for Wisconsin, with IL-W-5-NR. If your office is in Indiana: Wisconsin residents working there are withheld for Wisconsin, with WH-47. If your office is in Kentucky: Wisconsin residents working there are withheld for Wisconsin, with Form K-4 (box 4) or 42A809. If your office is in Michigan: Wisconsin residents working there are withheld for Wisconsin, with MI-W4 (line 8b).Source: IDOR, Form IL-W-5-NR, Employee's Statement of Nonresidence in Illinois (PDF); Publication 130 (February 2026) (opens in a new tab), checked October 5, 2026; Indiana DOR, Income Tax Information Bulletin #28 (December 2024, PDF) (opens in a new tab), checked October 5, 2026; Kentucky Department of Revenue, Form K-4 Kentucky's Withholding Certificate 2026, 42A804(12-2025) (PDF) (opens in a new tab), checked October 5, 2026; Michigan Treasury, Form 446, 2026 Michigan Income Tax Withholding Guide (Rev. 02-26, PDF) (opens in a new tab), checked October 5, 2026
Convenience rules
If your company is in Delaware, New York or Pennsylvania, the employee is assigned to an office there and works there on some days, that state taxes the days worked from home in Wisconsin for the employee's convenience.Source: Delaware Division of Revenue, 2025 Form PIT-NON Instructions, Non-Resident Individual Income Tax Return (PDF) (opens in a new tab), checked October 6, 2026; NYS DTF, TSB-M-06(5)I, New York Tax Treatment of Nonresidents and Part-Year Residents: Application of the Convenience of the Employer Test to Telecommuters and Others (May 15, 2006, PDF) (opens in a new tab), checked October 6, 2026; PA Department of Revenue, PA Personal Income Tax Guide, Gross Compensation (opens in a new tab), checked October 6, 2026
Office days in your company's state
That state's day limit, if it has one, decides whether it withholds on those days: see its page, or the helper below.
An employee from another state working in Wisconsin
Wisconsin sets no day count before a nonresident's wages for work there are withheld.Source: Wisconsin DOR, Publication W-166, Withholding Tax Guide (1/26, PDF) (opens in a new tab), checked October 6, 2026

Where to withhold: two states

Pick your company's state, the state where the employee lives and works from home, and the days a year the employee works at your office. The answer reads each state's rules from the data on these pages.

Your company is in
Employee lives and works from home in
Days a year at your office
Assigned to an employer office in New YorkMatters only in the states with a convenience rule (Connecticut, Delaware, New Jersey, New York and Pennsylvania), and only with office days there.

Income tax withholding

  • Wisconsin: all wages.

No New York withholding: the employee does no work in New York.

Unemployment

Wisconsin: the employee works from home there, so the work is localized in Wisconsin.

Simplified: resident credits, dollar tests, local taxes and a move during the year are not worked out here. Each state's rule and its source are on its page.

Unemployment

The employee works from home in Wisconsin, so the work is localized in Wisconsin: pay Wisconsin unemployment tax, not your company state's.

Agency
Wisconsin Department of Workforce Development (DWD), Unemployment Insurance DivisionSource: Wisconsin DWD, Unemployment Insurance Employer Resources (opens in a new tab), checked October 5, 2026
Wage base
$14,000 Fixed by lawSource: Wisconsin DWD, Unemployment Insurance 2026 Tax Rates (opens in a new tab), checked October 5, 2026
New employer rate
3.05% to 3.25% 3.05% with taxable payroll under $500,000, 3.25% at $500,000 or more; new construction employers pay 2.50% or 2.70% Surcharges included Construction 2.5% to 2.7% 3.05% to 3.25% from January 1, 2027Source: Wisconsin DWD, Unemployment Insurance 2026 Tax Rates (opens in a new tab), checked October 5, 2026

Open the account: Wisconsin payroll tax registration

Wisconsin has no paid leave program funded through payroll.

Wisconsin employer rules

Employment law applies where the employee works, so these follow the employee into Wisconsin.

Final pay
Fired: Next regular payday (or within 31 days of when the wages were earned, if earlier) Quit: Next regular payday (or within 31 days of when the wages were earned, if earlier)Source: Wisconsin Statutes s. 109.03(2), Payment to discharged or resigned employees (opens in a new tab), read from an archived copy dated July 31, 2026 (opens in a new tab)
Pay frequency
At least monthly, covering wages earned to a day no more than 31 days before paydaySource: Wisconsin DWD Labor Standards, Wage Payment and Collection (opens in a new tab), checked October 5, 2026
Pay notice
No pay-rate notice at hire. Each paycheck or attached stub must show hours worked, rate of pay, and the amount of and reason for each deduction; electronic stubs are allowed.Source: Wisconsin DWD Labor Standards, Wage Payment and Collection (opens in a new tab), checked October 5, 2026
New hire reporting
Within 20 days of the start date.Source: Wisconsin DWD, UI Employer Handbook (UCB-201-P), Section 5 Part 3: New Hire Reporting Instructions (opens in a new tab), checked October 5, 2026
E-Verify
No state E-Verify requirement for private employers or public contractorsSource: Wisconsin Statutes ch. 16 (Department of Administration: state purchasing and public works contracts), published 4-3-26 (opens in a new tab), checked October 5, 2026
Sick leave
No state sick leave law.Source: Wisconsin DWD Equal Rights, Wisconsin Family and Medical Leave Act (opens in a new tab), checked October 5, 2026

When the employee moves

Re-check the work state and the registrations before the next payroll: a move changes which state's withholding, unemployment, paid leave and employer rules apply.

Registering your business in Wisconsin, and whether one remote employee creates tax nexus for your company, are separate questions this page does not cover.

More on Wisconsin

WORKLIO HCM

Payroll for employees who work from home in another state

Worklio HCM withholds by home and work state, reciprocity included, and handles city and county taxes. We help open state withholding and unemployment accounts when you hire somewhere new, and our registration service can register your employer tax accounts for you. Taxes are calculated, deposited and filed in every state and locality, and when an agency notice arrives, you upload it and our tax team resolves it.

Remote employees in other states

Sources

The agency page or document behind each fact, as checked.

General information, not legal or tax advice. Rules change; confirm current requirements with the relevant agency or your advisor. You remain responsible for your employment taxes and for each state's rules.

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