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Wisconsin tax and labor law guide

Household employment requirements for families hiring a caregiver in Wisconsin

The Wisconsin nanny taxes are made up of federal and state tax, labor and payroll laws families have to follow when they hire a household employee. We’ve compiled all this information here in an easy-to-read guide so you can check out everything that HomePay is here to help with.

Checklist for Wisconsin household employers

We know you’re busy so here’s a quick “to-do” list with links to extra details below.

Beginning of employment 

During employment 

Optional benefits for your employee

Ending employment

Beginning of employment 

Workers’ compensation

Household employers in Wisconsin are not required to carry workers’ compensation insurance, however we advise all families to do so. These policies pay for medical expenses and lost wages if an employee has a work-related injury or illness. Obtain an instant quote and purchase a policy online, or contact our partner, Clarke White, at 804-267-1210 or wcnanny@allrisks.com.

Employment posters 

Families in Wisconsin are required to notify their employee of their rights by sharing these posters

During employment 

Minimum wage rate

The current minimum wage in Wisconsin is $7.25/hour.

Wisconsin overtime requirements

  • Live-out employees must be paid 1.5x their hourly rate for all hours worked over 40 in a workweek.
  • Live-in employees are not required to be paid overtime. 
  • Overtime is not required to be paid when work is performed on a holiday. 

Optional benefits for your employee 

Health insurance

Families with only 1 employee can make contributions toward their employee’s health insurance premiums and treat the amount as non-taxable compensation. In this scenario, neither the employee nor the employer are required to pay any taxes on that portion of the compensation.

Families with 2 or more employees have 3 options:

  1. Set up an Individual Coverage Health Reimbursement Arrangement (ICHRA).
  2. Set up a Qualified Small Employer Health Reimbursement Arrangement (QSEHRA).
  3. Purchase a policy through SHOP (Small Business Health Options Program). 

Visit our health insurance page for more information about these options.  

Mileage reimbursements

The current federal mileage reimbursement rate is $0.56 per mile and only covers miles driven by your employee while on the job. Miles driven commuting are not eligible for reimbursement.

Ending employment 

Termination notice

Household employers in Wisconsin are required to provide their employee with a written notice explaining their eligibility for unemployment benefits when they are let go from their job.

Managing unused PTO 

Wisconsin household employers do not need to pay their employees for unused sick and/or vacation time, unless their employment contract specifies otherwise.

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