Wisconsin Homeworkers/ Telecommuting: What you need to know

Out-of-state residents commuting to Wisconsin. The Wisconsin Department of Revenue (DOR) uses a physical presence test to determine whether an employee’s income is sourced to Wisconsin, so a nonresident who telecommutes to Wisconsin would be subject to Wisconsin taxation only for the days the employee is present and performs services in the state.
For a Limited Time receive a FREE HR Report on the "Critical HR Recordkeeping”.  This exclusive special report covers hiring records, employment relationships, termination records, litigation issues, electronic information issues, tips for better recordkeeping, and a list of legal requirements.  Download Now
A Wisconsin employer would be required to withhold tax from the telecommuting employee’s pay if the total amount of Wisconsin income is over $1,500 per year.
Wisconsin residents telecommuting out of state. Conversely, the income of an employee who is a resident of Wisconsin and telecommutes to an out-of-state employer would be sourced to Wisconsin.
The DOR may consider that the use of a Wisconsin residence as a home office by a full-time telecommuter is the maintenance of a business location in the state by the employer. This would make an out-of-state employer subject to state corporate income tax. Other considerations in making such a determination include continuous or frequent activity by Wisconsin employees in performance of services, operation of equipment owned or leased by the employer (including computers), and soliciting and taking orders.
To inquire about the tax status of telecommuters, call the DOR at 608-266-2776.
Telecommuting is addressed in contracts with state employee unions. The state Department of Administration has telecommuting guidelines for state workers that address risk and safety issues as well as work assignments and equipment and communication requirements.
Last reviewed July 2014.
Homeworkers in Wisconsin are covered by the state minimum wage law and are entitled to the same minimum wage ...

>> Read more about Homeworkers/ Telecommuting

Related Topics

More on this topic:

State Requirements

National | Arizona | California | Colorado | Connecticut | Florida | Georgia | Hawaii | Idaho | Illinois | Iowa | Louisiana | Maryland | Massachusetts | Michigan | Minnesota | Montana | New Jersey | New Mexico | New York | North Carolina | North Dakota | Oklahoma | Oregon | Rhode Island | South Carolina | Texas | Vermont | Virginia | Washington | West Virginia | Wisconsin | Wyoming |

Wisconsin Homeworkers/ Telecommuting Resources

Homeworkers/ Telecommuting Products

HR Essentials Kit: Homeworkers / Telecommuters
Telecommuting allows employees to work part or all of their standard workweek from a remote location, seamlessly “commuting” by e-mail, cellular phones, and fax machines. What does it mean to you the employer? "
Free Special Reports
Get Your FREE HR Management Special Report. Download Any One Of These FREE Special Reports, Instantly!
Featured Special Report
Claim Your Free Copy of Critical HR Recordkeeping

Record retention is complex and time consuming. However, in addition to complying with various federal and state laws, keeping good, well-organized records can be very helpful in documenting and supporting an organization’s employment actions.
Download Now!

This special report will discuss how you can ensure your records are in good order, and establish a record-retention policy.

Topics covered:
1. Hiring Records
2. Employment Relationships
3. Termination Records
4. Litigation Issues
5. Electronic Information Issues
6. Tips for Better Recordkeeping
7. A List of Legal Requirements

Make sure you have the information you need to know to keep your records in order.