Key figures
Wisconsin payables
2026, with sources
Wisconsin’s own 1099 rules
Wisconsin has a 1099 requirement of its own. Businesses doing business in Wisconsin file copies of federal 1099s for rents and royalties of $600 or more, nonwage compensation of $600 or more paid to Wisconsin residents, nonwage payments of $600 or more to nonresidents for services performed in Wisconsin, and any payment where Wisconsin tax was withheld. The due date tracks January 31 (February 2, 2026 for tax year 2025), and ten or more forms must be filed electronically.
A Delaware startup that pays a Milwaukee-based contractor $8,000 for design work files the 1099-NEC with the IRS and a copy with Wisconsin DOR.
Use tax on what you buy
Wisconsin’s use tax mirrors its sales tax: 5% state, plus 0.5% in the counties that levy it (0.9% in Milwaukee County) and the City of Milwaukee’s 2%. It applies to taxable goods, digital goods, prewritten software delivered to you and taxable services bought without Wisconsin tax. SaaS on the vendor’s server and storage you don’t control are not taxable, which keeps most of a software company’s tool stack out of it.
A Madison startup that buys a $4,000 server from an out-of-state seller with no Wisconsin tax owes 5% state use tax plus Dane County’s 0.5% if it is used there, reported on its sales and use tax return. Its monthly SaaS subscriptions for email, CRM and analytics carry none.
Uncashed checks
Uncashed vendor and payroll checks are unclaimed property, reported to DOR by November 1 for the period ending June 30. Owners must get due diligence letters first; a check that has sat uncashed past the dormancy period belongs on the report, not in other income.
The federal baseline
This page covers what Wisconsin adds. The federal rules underneath it apply here too.
Common questions
Do we send 1099s to Wisconsin?
Yes, more often than founders expect. Wisconsin requires a copy of the 1099 for nonwage compensation of $600 or more paid to a Wisconsin resident, or to a nonresident for services performed in Wisconsin, and for any payment with Wisconsin tax withheld. The Wisconsin threshold is written into its own law, so it doesn’t move with the federal one.
Do we owe Wisconsin use tax on our software?
Not for remotely accessed software on the vendor’s server. Prewritten software downloaded to your equipment in Wisconsin is taxable, as are digital goods and hardware; if the vendor didn’t charge Wisconsin tax, you owe use tax at 5% plus the county rate.
Payables next door
- ILIllinois payablesIllinois asks for 1099s only where Illinois tax was withheld but wants contractors on the new-hire report, and Chicago taxes the cloud software your Chicago staff use.
- IAIowa payablesIowa wants 1099s only when they show Iowa withholding, filed electronically by February 15. Business SaaS purchases are generally exempt; computers are not.
- MIMichigan payablesMichigan wants a copy of every 1099 issued to a Michigan resident, filed directly for the 1099-NEC, and charges 6% use tax on untaxed goods and delivered software.
- MNMinnesota payablesMinnesota wants 1099s that show Minnesota withholding filed directly by January 31, and it taxes prewritten software however delivered, so untaxed software purchases carry use tax.
Founder guides on this
- PeopleContractor or employee? Classification for startupsContractor or employee depends on control, not the contract. The IRS test, state rules, 1099s, payroll registration and the cost of getting it wrong.
- The closeWhy startups should close their books every monthA monthly close turns a bank balance into numbers an investor, an auditor or a 409A firm will accept. What it is, and why it gets expensive to skip.
More of the Wisconsin guide
- AccountingAccounting and state tax in WisconsinCorporate tax, conformity to federal rules, apportionment and what it does to your books
- ReceivablesReceivables and sales tax in WisconsinSales tax registration, economic nexus, whether SaaS is taxable, and collecting from customers
- PayrollPayroll taxes and employer rules in WisconsinWithholding, unemployment insurance, paid leave, minimum wage and the rules on paydays
- ComplianceCompliance and filings in WisconsinRegistering to do business, annual reports, franchise tax and the filing calendar
- AdvisoryAdvisory: credits and decisions in WisconsinCredits, incentives and the decisions that are cheaper to get right the first time
Sources
Checked against each agency’s own page on . Rates and thresholds change, usually on January 1.
General information for US companies, not tax, legal or accounting advice for yours. Rules and thresholds change; confirm the specifics with a CPA or the agency before you act on them.