Can businesses hire part-time employees without benefits?

Hiring Part-Time Employees Without Benefits in Wisconsin

In Wisconsin, businesses can hire part-time employees without offering benefits, but there are important operational factors to consider to ensure compliance and effective workforce management.

Key Operational Considerations

• Benefits Eligibility: Wisconsin does not require employers to provide benefits such as health insurance or paid leave to part-time employees unless specified by company policy or federal law (e.g., Affordable Care Act thresholds).
• Affordable Care Act (ACA) Compliance: As of 2026, if your business has 50 or more full-time equivalent employees, you must evaluate part-time hours to determine if employees qualify as full-time under the ACA, which affects health insurance obligations.
• Employee Classification: Accurately classify workers as part-time to avoid misclassification issues. Proper classification impacts payroll taxes, workers’ compensation, and unemployment insurance.
• Payroll and Tax Withholding: Even part-time employees require correct payroll processing, including withholding federal and state taxes and contributing to Social Security and Medicare.
• Recordkeeping: Maintain detailed records of hours worked, wages paid, and employment agreements for all part-time employees to support compliance with labor regulations and audits.
• State-Specific Labor Laws: Wisconsin does not mandate paid sick leave or vacation for part-time workers, but businesses should review any local ordinances that may apply.

Practical Steps for Wisconsin Businesses

• Define part-time status clearly in your employee handbook or contracts.
• Set up payroll systems to handle part-time wage and tax requirements efficiently.
• Monitor total employee hours to assess ACA obligations annually.
• Communicate benefit policies transparently to part-time staff to manage expectations.
• Review insurance coverage needs, including workers’ compensation and unemployment insurance, for part-time employees.
• Consider automation tools to streamline hiring, scheduling, and recordkeeping for part-time staff.