Put your period or yearly income into our free paycheck calculator along with the necessary federal, state, and local W4 information to determine your net pay or take-home pay in Wisconsin. Wisconsin has a four-bracket income tax rate ranging from 3.54% to 7.65%.
So you are offered an appealing job in Wisconsin? Can't decide whether moving to a new state for this job worth it or not? Don't worry! We have done the work for you! Our travel and finance experts have joined hands to cram this unique little Wisconsin's guide full of useful stats, and details you need to know before relocating.
This guide covers the following topics:
Wisconsin is a US state famous for the That ‘70s Show, farmland, cheese and the Green Bay Packers. It is located in Midwest, north-central, and Great Lakes regions of the United States, sharing in borders with Lake Michigan to the east, Minnesota to the west, Lake Superior to the north, Illinois to the south, Iowa to the southwest, and Michigan to the northeast.
Moving from town to town or state to state is not an easy job. It requires a lot of research, planning, and guidance to make this life-changing decision worth it. Here are the few things you must know about Wisconsin state, before loading your packing your bags and move:
Living in Wisconsin is cheaper than most of the states. The cost of living in WI is 90.9 (according to bestplaces.net), which is significantly lower than the national average of 100 points. Housing followed by grocery and transportation costs is a significant contributor to the overall lower cost of living. Whereas, Health, Utilities, and Miscellaneous expenses are almost similar to the rest of the state.
You can easily rent or buy your dream house in Wisconsin at an affordable price, as the median home value in the state is $188,100, which is considerably lower than the nationwide median home value of $231,200.
Moreover, the median rental expense in the state for a single bedroom is $683, and for a double bedroom is $867. However, if you are looking for way cheaper than the state's average, then you can go to cities like Merrill, Rothschild, Kronenwetter, and Waupun.
Don't Worry! The bright future of your kids would be in a safe hand while living in Wisconsin, as the state ranked #13 in the United States for States with the Best (and Worst) Schools by USAToday.
Some of the top school, colleges, and universities that offer great value and affordability for education include the University of Wisconsin – Madison (Madison), Marquette University (Milwaukee), St. Norbert College (De Pere), Elmbrook School District (Brookfield) and School District of Whitefish Bay (Whitefish Bay).
Wisconsin, also known as The Badger State, has endless outdoor opportunities to make your weekend and vacation memories with friends and family. You can explore famous natural wonders and cultural sites, including Cave of the Mounds, The Historic Third Ward, Taliesin Preservation (Frank Lloyd Wright Visitor Center), Historic Cedarburg, and Wisconsin State Capitol.
Moreover, you can also enjoy a great view, hiking, camping, and much more in State parks like Copper Falls State Park, Amnicon Falls State Park, and Peninsula State Park. Besides, the state also has endless spots for delicious foods and drinks, as well as some cool and unusual places like House on the Rock, American Science & Surplus, and Dr. Evermor's Forevertron.
Wisconsin has two climate regions; the southern and southwestern portions have hot-summer humid continental climate while most of Wisconsin state has a warm-summer humid continental climate. The state experiences pretty chilly winters where low can drop under 10°F, with an average of 40 inches of snow in the south and up to 160 inches in the Lake Superior area.
Additionally, the Badger State also has threats and risks of natural disasters like Flooding, Tornadoes, Thunderstorms, and Blizzards & Snowstorms.
Wisconsin is currently ranked #24 in the United States for Overall Economy by US News & World Report. The unemployment rate here is only 2.9%, while the minimum wage rate is $7.25/hour. Hence, giving a positive vibe, especially for job seekers. The fastest-growing jobs in the state include business analysts, operations analysts, taxi drivers, and web developers. Moreover, among the highest paying job are surgeon, OB/GYN, dentist, and podiatrist.
The state secures 24th position for a business environment and 38th position for economic growth among the 50 states, giving a sign of hope for entrepreneurs, especially in the industries like Agriculture, Advanced Manufacturing, Healthcare, and Information Technology.
Here are the quick points about all the loves and hates about the Badger State:
As we are done with relocation to Wisconsin and its payroll facts, now it's time to calculate paycheck.
The very first step to calculating the paycheck amount is to determine Gross Pay. It is a wage that an employee earned in the last pay period.
Gross Pay is calculated differently for both hourly and salary-based employees, which is discussed in detail as follow:
Hourly Employees are paid at a mutually agreed pay rate for each hour they work in a pay period. Usually, Pay periods for Hourly employees are Hourly, Daily, Weekly, and Bi-Weekly. However, the Federal, State, and Local Wage law requires the employers to set the pay rate equals to or more than the defined Minimum Wage Law for the non-exempted employees.
Hourly employees are also entitled to receive overtime, for each excess hour worked after regular hours in a workday or a workweek. Remember, like Minimum wage, the employers are also required to follow Overtime wage law provided by the federal, state, and local authorities.
To calculate gross wage for an hourly employee:
Salaried Employees are paid at the flat amount rather than on an hourly basis. The amount is usually mutually agreed as an Annual Salary, which is then paid in Semi-monthly or Monthly Pay periods.
Salaried employees are mostly exempted from overtime law. However, their salaries must be according to Federal and State Minimum Wage law.
To calculate Gross Pay for Salaried Employees:
Don't forget that Supplemental Wages like Bonuses, commissions, tips, paid leaves, fringe benefits, or other taxable wages earned by the employee must be added into the Gross wages.
Once you are done with Gross Wages, it's time to subtract any Pre-Tax deductions from the gross wage to get taxable wages as Pre-tax deductions are not taxable for federal payroll taxes.
Pre-tax deductions are offered to the employees as benefits like fringe benefits, HSA plans, etc., to reduce their taxable income, hence, increasing their take-home pay amount. Remember, not all benefits are exempted from taxes, so choose the pre-tax deductions wisely.
Some of the common pre-tax deductible benefits are:
Many Taxpayers find it hard to itemize their deductions to calculate taxable wages, for which they go for standard deductions, that varies according to the filing status, as shown in the table below:
Filing Status | Standard Deduction Amount |
---|---|
Single Filers | $12,200 |
Married, Filing Jointly | $24,400 |
Married, Filing Separately | $12,200 |
Head of Household | $18,350 |
Once you have determined the taxable wages, it's time to deduct Federal Income taxes for the taxable wages.
IRS requires the employers to withhold federal income tax from the employee's paycheck, according to the details provided by the employee on Form W-4. The employee fills this form at the start of the job. The form includes all the necessary information, including income, number of allowances to claim, number of dependents, amount of additional taxes to deduct, and much more.
The employees are required to keep their Form W-4 up to date with all their current information, especially marriage, divorce, or child's birth.
The federal income tax is charged according to the tax brackets in which the taxpayer's income falls. The latest income tax brackets and rates are as follow:
Taxable Income | Rate |
---|---|
$0 - $9,700 | 10% |
$9,700 - $39,475 | 12% |
$39,475 - $84,200 | 22% |
$84,200 - $160,725 | 24% |
$160,725 - $204,100 | 32% |
$204,100 - $510,300 | 35% |
$510,300+ | 37% |
Taxable Income | Rate |
---|---|
$0 - $19,400 | 10% |
$19,400 - $78,950 | 12% |
$78,950 - $168,400 | 22% |
$168,400 - $321,450 | 24% |
$321,450 - $408,200 | 32% |
$408,200 - $612,350 | 35% |
$612,350+ | 37% |
Taxable Income | Rate |
---|---|
$0 - $9,700 | 10% |
$9,700 - $39,475 | 12% |
$39,475 - $84,200 | 22% |
$84,200 - $160,725 | 24% |
$160,725 - $204,100 | 32% |
$204,100 - $306,175 | 35% |
$306,175+ | 37% |
Taxable Income | Rate |
---|---|
$0 - $13,850 | 10% |
$13,850 - $52,850 | 12% |
$52,850 - $84,200 | 22% |
$84,200 - $160,700 | 24% |
$160,700 - $204,100 | 32% |
$204,100 - $510,300 | 35% |
$510,300+ | 37% |
Besides, Federal Income Tax, the IRS also requires the employer to withhold FICA tax (15.3%) for the employee's paycheck and also requires the employer to pay an equal amount for each employee.
Federal Insurance Contributions Act (FICA) Taxes comprises of two types of taxes which are as follow:
A total of 12.4% of social security tax is charged from which 6.2% is withheld from the employee's gross, and the employer pays the matching 6.2%. However, Social Security is only charged on the maximum taxable earnings of $137,700 for 2024.
A total of 2.9% of Medicare is charged, from which 1.45% is withheld from the employee's gross, and the employer pays the matching 1.45%. Unlike Social Security, there is no maximum table earning limit for this tax. However, an additional surtax of 0.9% is charged as Additional Medicare Surtax on the employees having income over the specified level along with filing status, which is as follow:
Income Over | Filing Status |
---|---|
$250,000 | Married Filing Jointly |
$125,000 | Married Filing Separately |
$200,000 | Single |
IRS requires the employer to pay another tax, known as The Federal Unemployment Tax Act (FUTA) Tax. This tax is paid at the rate of 6% on the first $7000 earned by each employee in a year. However, the IRS doesn't require the employees to contribute to it.
The employers who pay State Unemployment Insurance (SUI) tax in full and on time are given relieving FUTA tax credit of up to 5.4%, which saves a whopping 90% from FUTA Tax.
Post-tax deductions (after-tax deductions) is an amount the employer takes out from the employee's paycheck after taxes. Therefore, it does not affect taxable wages and the amount of tax payable.
Here are some of the types of post-tax deductions that employee may voluntarily choose:
As you are done with Federal Payroll Taxes, now it's time to discuss State Payroll Taxes. The Wisconsin State charges State Income Tax on employees, and State Unemployment Insurance (SUI) Tax on the employers.
Wisconsin State levies State income tax from employee's paycheck according to the progressive income tax system, at the rate ranging between 3.86% and 7.65%, distributed in four tax brackets determined by income level and filing status.
The employer withholds this tax from the employee's paycheck according to the details provided by the employee in the Form WT-4. This form is filled by the employee while joining the job. Employees are required to keep the form updated with any significant life events like marriage, child's birth, and divorce.
The State Unemployment Insurance (SUI) Tax is an employer-funded program that provides temporary income to unemployed workers who have lost their job without fault of their own.
The state doesn't charge in Wisconsin State Disability Insurance (SDI) tax on employers. However, it does require the employers to pay Wisconsin State Unemployment Insurance (SUI) tax, at the rate ranging from 0% to 12% on a first $14,000 earned in wages by each employee in a year. However, new employers are given relief as they have to pay:
No city or county in Wisconsin levies Local Income Tax.
Now that you are done with all payroll taxes and calculated the net take-home pay of an employee, it's time to cut the paycheck. Moreover, you, as an employer, must pay your portion of FICA tax along with FUTA and SUI tax in full and on time regularly.
Answer: Following are the taxes taken out of employee's paycheck while working in Wisconsin:
Answer: followings are the tax rates and brackets of Wisconsin state withholding tax:
For "Single" and "Head of Household" Filers:
For "Married, filing jointly" Filers:
For "Married, filing separately" Filers:
Answer: The average salary In Wisconsin for a Male is $64,874, and for a female is $47,745, according to datausa.io.
Answer: The WI state has a minimum wage rate similar to the federal minimum wage rate of $7.25/hour for employees, unless or otherwise exempted. However, the Minimum wage rate of youth employees is $5.90. Moreover, the cash minimum wage rate for tipped employees is $2.33, with a maximum tip credit of $4.92.