Brief Wisconsin Payroll

[Snaggletooth]

Client is a government contractor. By the terms of the contract, he had to service a military base in Wisconsin with an employee. Not a subcontractor or independent worker. Terms dictated that the employee HAD to be on the payroll of my client.

Worker registered 32 hours on his timecard will get paid as an employee. I would like for my client to avoid a full-blown Wisconsin payroll for this 32 hours work. There will be no more work in Wisconsin. Is there a way to avoid SIT reporting for months to come, and SUTA for months to come? Client would be very happy to just make a one-time payment to State of Wisconsin if they can be done with it.

Is there a way to simplify this?

[TAXNJ]

Info

Client is a government contractor. By the terms of the contract, he had to service a military base in Wisconsin with an employee. Not a subcontractor or independent worker. Terms dictated that the employee HAD to be on the payroll of my client.

Worker registered 32 hours on his timecard will get paid as an employee. I would like for my client to avoid a full-blown Wisconsin payroll for this 32 hours work. There will be no more work in Wisconsin. Is there a way to avoid SIT reporting for months to come, and SUTA for months to come? Client would be very happy to just make a one-time payment to State of Wisconsin if they can be done with it.

Is there a way to simplify this?

Some info if you have not looked at yet - may or may not apply.

https://www.revenue.wi.gov/faqs/pcs/with.html

Or

https://www.revenue.wi.gov/pubs/pb166.pdf

[TAXNJ]

More

More info but may need to call Wisconsin govt to get further info and clarification of employer (in state vs. out of state).

"Wisconsin has a wage earnings threshold as well. Wages paid a nonresident for services performed within Wisconsin are subject to Wisconsin withholding if the employer can reasonably expect that the employee's annual earnings in the state will exceed $1,500 and if there is no reciprocal agreement with the employee's home state.

For more information on state withholding requirements for temporary nonresidents, see Payroll Administration Guide's Multistate Withholding Requirements: State Comparison Chart."

By Allison M. Gatrone

[Snaggletooth]

Threshhold

Thanks TAXNJ - this $1500 threshold apparently applies to SUTA as well.

The 32 hours were paid at a fairly high rate. I guess it boils down to whether the $1500 will be met.

It also follows that these are Wisconsin wages even if no withholding. And further complicated because the
man lives in Illinois. I didn't know it at the time I made the OP, but Wisconsin has reciprocity with Illinois.