Last reviewed: July 2026
New Wisconsin employers must: (1) obtain a federal EIN from the IRS, (2) register for a state tax account with the Wisconsin Department of Revenue for income tax withholding, (3) register for an SUI account with the Wisconsin Department of Workforce Development (DWD), and (4) obtain workers' compensation insurance. Complete all registrations before running your first payroll.
Table of Contents
When you hire your first employee in Wisconsin, you trigger a series of registration requirements at the federal and state level. Missing any of these steps can result in penalties, delayed payroll, and compliance headaches. This guide walks you through everything, in order.
Registration Overview
Here's a checklist of what every new Wisconsin employer needs:
- ☑ Federal Employer Identification Number (EIN)
- ☑ Wisconsin state tax registration (Wisconsin Department of Revenue)
- ☑ Wisconsin SUI account (Wisconsin Department of Workforce Development)
- ☑ Workers' compensation insurance
- ☑ New hire reporting setup
- ☑ Payroll system or software
Step 1: Get Your Federal EIN
Your Employer Identification Number (EIN) is your federal tax ID. You need it for everything — federal tax filings, state registrations, opening a business bank account, and running payroll.
Apply online at IRS.gov/EIN. It's free and you receive your EIN immediately.
Step 2: Register with Wisconsin Department of Revenue
Visit the Wisconsin Department of Revenue website to register for a state employer tax account. This allows you to withhold Wisconsin state income tax from employee paychecks and remit it to the state.
From the Payroll Desk
Don't wait until your first payroll to register. State registrations can take days or weeks to process. Start the registration process as soon as you know you'll be hiring.
Step 3: Register for SUI
Register for a State Unemployment Insurance account through the Wisconsin Department of Workforce Development. You'll be assigned:
- An employer account number
- Your initial SUI rate (3.05% for new employers)
- Quarterly filing requirements
SUI is an employer-paid tax on the first $14,000 of each employee's wages. See our Wisconsin SUI Rates 2026 guide for details.
Step 4: Workers’ Compensation Insurance
Wisconsin requires workers' compensation insurance once you employ three or more full-time or part-time workers, or as soon as you pay $500 or more in combined gross wages in a single calendar quarter, whichever happens first. Once you cross either threshold, coverage needs to be in place by the deadline the Wisconsin DWD Worker's Compensation Division sets for that trigger.
Wisconsin does not run a state insurance fund, so you'll buy a policy from a private carrier licensed in the state. Rates are set through the Wisconsin Compensation Rating Bureau and vary by industry classification, so it's worth comparing quotes from a couple of carriers before you commit.
Starting a Business?
If you're also forming your business entity, our guide to forming an LLC in Wisconsin walks through the state filing steps and fees.
Step 5: New Hire Reporting
Federal and Wisconsin law require you to report every new hire within 20 days of their start date. This information is used to enforce child support orders and prevent fraud.
Report new hires online through the Wisconsin New Hire Reporting Center. See our New Hire Reporting guide for the federal rules that apply alongside Wisconsin's.
Step 6: Set Up Payroll
With all registrations complete, you're ready to set up your payroll system. Gusto is a solid option for a Wisconsin small business running its first payroll: it calculates federal and Wisconsin withholding, deposits both automatically, and files the quarterly and annual returns for you, all for a flat monthly fee plus a per-employee charge.
Before your first pay run, double-check your withholding setup with our W-4 helper tool, and once payroll is live, use the Wisconsin paycheck calculator to confirm an employee's take-home pay matches what you expect.
Frequently Asked Questions
How do I register as a new employer in Wisconsin?
Register for a state tax ID with the Wisconsin Department of Revenue and for an SUI account with the Wisconsin Department of Workforce Development. You'll also need a federal EIN from the IRS.
When must I register as an employer in Wisconsin?
You must register as soon as you hire your first employee or, in some cases, when you pay wages above a threshold in a calendar quarter. Register before your first payroll.
Do I need workers' compensation in Wisconsin?
Yes, once you employ three or more workers, or pay $500 or more in combined gross wages in a calendar quarter, whichever comes first. Coverage is purchased from a private carrier, since Wisconsin does not run a state insurance fund.
What is an EIN and how do I get one?
An Employer Identification Number (EIN) is a federal tax ID from the IRS. Apply online at irs.gov/ein, and it's free and you receive it immediately.
Simplify Wisconsin Payroll
Gusto automatically calculates, withholds, and deposits both federal and Wisconsin payroll taxes. It files your quarterly and annual returns, too. Trusted by over 300,000 small businesses.
Legal & Tax Disclaimer
This article is for general informational purposes only and does not constitute legal, tax, or professional advice. Employment laws, tax regulations, and compliance requirements change frequently. The information on this page reflects our understanding as of July 2026 and may not reflect recent changes in federal or Wisconsin state law.
Do not act or refrain from acting based solely on the information in this article. Always consult a qualified attorney, CPA, or HR professional familiar with Wisconsin law before making payroll or compliance decisions for your business.