What should businesses do before hiring their first employee?

Preparing to Hire Your First Employee in Wisconsin

Before hiring your first employee in Wisconsin, it is essential to complete several operational steps to ensure compliance and smooth onboarding.

Register Your Business and Obtain Required IDs

• Register with the Wisconsin Department of Revenue (DOR): Set up your business tax account to manage withholding taxes.
• Obtain an Employer Identification Number (EIN): Get your EIN from the IRS, which is necessary for tax reporting and payroll.

Understand and Comply with Employment Laws

• Review Wisconsin labor laws: Familiarize yourself with state-specific wage, hour, and workplace regulations.
• Classify employees correctly: Distinguish between employees and independent contractors to avoid misclassification issues.

Set Up Payroll and Tax Withholding Systems

• Implement payroll processing: Choose payroll software or services that handle Wisconsin state tax withholding and reporting.
• Register for Unemployment Insurance (UI): Sign up with the Wisconsin Department of Workforce Development to manage UI taxes.

Prepare Employment Documentation and Recordkeeping

• Create job descriptions and employment agreements: Clearly outline roles, responsibilities, and terms of employment.
• Set up employee recordkeeping: Maintain records of hours worked, wages paid, and tax forms as required by Wisconsin law.

Obtain Required Insurance Coverage

• Secure workers’ compensation insurance: Wisconsin requires most employers to carry this insurance to cover workplace injuries.

Plan Your Hiring Process

• Develop a recruitment strategy: Use clear job postings and consistent interview procedures.
• Prepare for employee onboarding: Plan orientation, training, and compliance with state and federal new hire reporting.

As of 2026, following these operational steps will help Wisconsin businesses hire their first employee efficiently and stay compliant with state requirements.