Determination engine

Which state do you actually withhold in?

Reciprocity, convenience-of-the-employer, nonresident thresholds and unemployment localization, applied together to one employee's facts. Every answer cites the state source it came from.

Withhold Wisconsin income tax.

The work state does not tax these wages, so the residence state governs.

Income tax withheld to

Wisconsin

Graduated, top rate 7.65%

Employee certificate

None required

No state withholding allowance certificate applies.

Unemployment insurance

Minnesota

Localized under factor 1: Localization.

Reciprocal agreement

Minnesota has agreements, but not with Wisconsin.

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Below the Minnesota nonresident threshold

Minnesota does not require nonresident withholding until Minnesota-source wages exceed $15,300. You entered $0. Minnesota withholding is keyed to the annually indexed minimum filing requirement for Minnesota-source income; Tax Foundation reports $15,300 of Minnesota-source income for 2026. This figure comes from Tax Foundation, not a Minnesota DOR page -- verify the current-year amount with the Minnesota Withholding Tax Instruction Booklet before relying on it.

Track this, because it flips mid-year

Once the threshold is crossed, most states require withholding on all in-state wages for the year, not just the excess. Set an alert well before the limit.

Wisconsin also taxes this income, with a credit

The residence state taxes worldwide income. The employee claims a credit on the Wisconsin return for tax paid to Minnesota, which prevents true double taxation but usually still leaves a balance if Wisconsin's rate is higher. Some employers withhold for both states; many withhold only for Minnesota and let the employee manage the difference.

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Minnesota paid family and medical leave contributions

NEW FOR 2026: Minnesota Paid Leave premiums AND benefits both began January 1, 2026. The 2026 premium is 0.88% of wages up to $185,000; employers must pay at least 50% and may deduct up to 0.44% from employees. Employers with 30 or fewer employees and low average wages qualify for a reduced 0.66% total rate. First premium payment is due April 30, 2026. Employee contribution: 0.44%. These follow the state of unemployment coverage, not the income tax state.

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Employer registrations you will need

Wisconsin — Income tax withholding: Wisconsin Department of Revenue
Minnesota — Unemployment insurance: Minnesota Department of Employment and Economic Development (DEED)

Minnesota profile Wisconsin profile Full write-up for this pair

Change the inputs

Withholding determination

Answer six questions. The result is a shareable link, so you can paste it into a ticket or an email.

Employee lives inState of residence

Work is performed inWhere the employee physically sits

Employer is based inWhere the work is directed from

Days in the work stateThis calendar year, leave blank if unknown

Wages from work-state daysUS dollars, leave blank if unknown

Arrangement Works remotely rather than at an employer location Remote work is an employer necessity, not employee preference

Run a whole roster instead

This is a determination aid, not advice. StateSide encodes published state rules and applies them mechanically to the facts you enter. It does not know your entity structure, your nexus history, your equity compensation, or the dozens of exceptions that turn a clean rule into a judgement call. Every determination cites the state source it came from — verify against that source, and take anything consequential to a payroll tax professional before you act on it.