Wisconsin Workers' Compensation Payroll Department Guide

Wisconsin requires certain employers to provide workers' compensation insurance coverage for employees. The Wisconsin Department of Workforce Development (DWD), Worker's Compensation Division, administers Wisconsin's workers' compensation program and provides employer, employee, insurance, and claims resources.

Wisconsin workers' compensation provides benefits for employees who suffer qualifying work-related injuries or occupational diseases. Employers are responsible for complying with Wisconsin insurance and injury-reporting requirements, while insurance carriers and self-insured employers have important responsibilities for processing claims and reporting information to the state.

Payroll departments play an important role in workers' compensation administration because accurate wage, time, employment, and leave records may be required when an employee is injured, a claim is filed, or wage-loss benefits must be calculated.

Wisconsin Workers' Compensation Compliance Overview

Wisconsin's workers' compensation system is governed primarily by Chapter 102 of the Wisconsin Statutes and related Wisconsin administrative rules. The Wisconsin Department of Workforce Development's Worker's Compensation Division oversees important aspects of the program.

Wisconsin's system is designed to provide prompt medical care and compensation for qualifying work-related injuries and illnesses. Employers, insurance carriers, and self-insured employers each have specific responsibilities under the workers' compensation law.

For payroll professionals, workers' compensation compliance involves more than processing an employee's regular paycheck. Payroll may be asked to provide wage histories, earnings information, hours worked, leave information, and post-injury earnings during the administration of a claim.

Wisconsin Workers' Compensation At A Glance

Wisconsin requires covered employers to carry workers' compensation insurance
Workers' compensation coverage generally begins on an employee's first day of work
The Wisconsin Department of Workforce Development's Worker's Compensation Division administers the state's workers' compensation program
Employers generally obtain coverage through a licensed insurance carrier or qualify to self-insure
Wisconsin has specific coverage requirements based on the type and size of the employer
Employers with employees working in Wisconsin may be required to obtain Wisconsin workers' compensation coverage even when the employer is based outside Wisconsin
Employers must post the required Wisconsin workers' compensation notice for employees
Employees should report work-related injuries or suspected occupational diseases to their employer immediately
Insured employers generally must report injury claims to their workers' compensation insurance carrier within 7 days
Work-related fatalities must be reported to the Wisconsin Worker's Compensation Division and insurance carrier within 24 hours
The Employer's First Report of Injury or Disease is Form WKC-12 or WKC-12-E
Insurance carriers and self-insured employers have additional reporting responsibilities to the Worker's Compensation Division
Claims involving more than 3 days of lost time have additional state reporting requirements
Wisconsin uses WKC-13 and wage-related reports for supplemental claim and payment information
Workers' compensation benefits may include medical care, temporary disability benefits, permanent disability benefits, vocational rehabilitation, and death benefits
Payroll should maintain accurate wage and employment records for workers' compensation claims

Wisconsin Workers' Compensation Employer Requirements

Wisconsin employers should:

Determine whether the business is required to carry workers' compensation insurance
Secure workers' compensation coverage when required
Maintain current workers' compensation coverage
Post the required Wisconsin workers' compensation notice
Identify the insurance carrier or claims administrator responsible for handling injuries
Establish procedures for promptly reporting workplace injuries and illnesses
Report qualifying injury claims to the insurance carrier within the required deadline
Report work-related fatalities within 24 hours
Complete the Employer's First Report of Injury or Disease when required
Provide accurate information to the insurance carrier or claims administrator
Maintain accurate employee wage and employment records
Cooperate with the workers' compensation insurance carrier or claims administrator
Respond promptly to requests for wage and employment information
Track employees who are absent because of workplace injuries
Track modified-duty assignments and post-injury earnings
Coordinate return-to-work information among payroll, HR, management, and the claims administrator

Wisconsin Workers' Compensation Insurance Coverage

Wisconsin requires employers that meet the state's coverage requirements to carry workers' compensation insurance. The specific requirement depends on factors such as the employer's type of business, number of employees, and payroll.

Wisconsin's employer guidance includes different requirements for businesses such as corporations, partnerships, limited liability companies, farmers, domestic employers, and out-of-state employers.

An employer generally must obtain coverage when it reaches the applicable Wisconsin statutory threshold. Once required, the employer must maintain coverage continuously while the requirement applies.

Out-of-state employers with employees working in Wisconsin may also be required to carry Wisconsin workers' compensation insurance. Wisconsin's Department of Workforce Development states that an out-of-state employer with employees working in Wisconsin must have a policy issued by an insurer licensed to write workers' compensation insurance in Wisconsin and endorsed to name Wisconsin as a covered state in Section 3a.

Wisconsin Workers' Compensation Coverage Thresholds

Wisconsin's insurance requirements vary according to the type of employer. Employers should determine their coverage obligation using the current requirements published by the Wisconsin Department of Workforce Development.

For example, Wisconsin has specific thresholds for non-farm employers based on the number of employees and payroll. Farmers also have separate requirements based on the number of employees working on the same day and the number of days during the calendar year.

Because coverage thresholds can depend on the employer's circumstances, payroll and HR departments should not assume that a business is exempt simply because it has a small number of employees.

Wisconsin Workers' Compensation Notice Requirements

Wisconsin provides a required Notice to Injured Workers and Employers poster. The notice informs employees and employers of their rights and responsibilities under Wisconsin workers' compensation law.

The employer's workers' compensation insurance carrier or claim administrator information is intended to be included on the notice so employees know where to report or direct questions concerning a workplace injury.

Employers should keep the required notice posted where employees can readily see it and should replace outdated versions when Wisconsin DWD issues an updated form.

Wisconsin Workers' Compensation Injury Reporting

Employees should report work-related injuries or suspected occupational diseases to their supervisor, Human Resources department, or another designated employer representative immediately.

Wisconsin's employee guidance states that employees should act without delay. In most situations, an employee should report an injury within 30 days, although Wisconsin provides a longer period under the workers' compensation statute for certain claims.

Insured employers generally must report a claim of injury to their workers' compensation insurance carrier within 7 days after actual knowledge of the injury.

Fatal work-related injuries require immediate attention. Wisconsin requires employers to report work-related fatalities to the Worker's Compensation Division and the employer's insurance carrier within 24 hours.

Payroll should have procedures for immediately notifying the appropriate personnel when an injury may affect:

Hours worked
Regular wages
Overtime
Paid leave
Attendance
Work status
Modified duty
Post-injury earnings
Salary continuation
Return-to-work status

Wisconsin Workers' Compensation Payroll Records

Accurate payroll records can be critical when a workers' compensation claim is filed. Wage information may be required by an insurance carrier or claims administrator when determining compensation for lost time or partial disability.

Payroll should maintain records including:

Employee name
Employee identification information
Job title
Job duties
Work location
Date of hire
Date of termination, when applicable
Regular pay rate
Hours worked
Overtime
Bonuses
Commissions
Tips and other compensation
Paid sick leave
Vacation or PTO
Pre-injury earnings
Post-injury earnings
Reduced hours
Modified-duty wages
Salary continuation
Other employer-paid compensation

Payroll should ensure that information supplied for workers' compensation purposes agrees with payroll, timekeeping, HR, and personnel records.

Wisconsin Workers' Compensation Employer Reports

Insured employers generally must notify their workers' compensation insurance carrier of a work injury within 7 days after actual knowledge of the injury.

The Employer's First Report of Injury or Disease is Form WKC-12-E. Wisconsin DWD states that the form is used by employers to report work-related injuries to their insurance company.

When an injury results in more than 3 days of lost time, or when permanent partial disability is involved, the insurance carrier has additional reporting responsibilities to the Wisconsin Worker's Compensation Division.

For compensable lost-time injuries, insurance carriers or self-insured employers generally electronically report the First Report of Injury to the Worker's Compensation Division within 14 days after the injury.

Additional information concerning payments and wages is generally reported within 30 days using the applicable supplemental reports.

Wisconsin Workers' Compensation Forms

The Wisconsin Department of Workforce Development maintains the official workers' compensation forms. Wisconsin states that the forms on its website are the current versions approved by the Worker's Compensation Division and that their use is mandatory.

Important Wisconsin workers' compensation forms include:

WKC-12-E - Employer's First Report of Injury or Disease
WKC-12 - Employer's First Report of Injury or Disease print version
WKC-13 - Supplemental Report on Accidents and Industrial Diseases
WKC-13A1 - Wage Information
WKC-7 - Hearing Application
WKC-16 - Medical Report on Industrial Injury
WKC-19606-P - Notice to Injured Workers and Employers
WKC-17001 - Notice of Potential Eligibility to Receive Vocational Rehabilitation Services
WKC-18613-E - Mileage Reimbursement Record

Employers, insurance carriers, and claims administrators should use the current versions of Wisconsin workers' compensation forms and follow the applicable electronic filing requirements.

Wisconsin Workers' Compensation Wage Information

Wage information is an important part of Wisconsin workers' compensation administration. Insurance carriers and claims administrators may need information about an employee's earnings to calculate temporary or permanent disability benefits. Payroll should be prepared to provide accurate information concerning:

Regular wages
Average hours worked
Overtime
Bonuses
Commissions
Tips
Paid leave
Salary continuation
Changes in compensation
Reduced work schedules
Modified-duty earnings
Post-injury wages

Wisconsin uses WKC-13 and WKC-13A1 for supplemental and wage-related reporting in applicable claims. Payroll should provide the information requested by the insurance carrier or claims administrator promptly and accurately.

Wisconsin Workers' Compensation Benefits

Qualifying workers' compensation claims can provide benefits for employees who experience work-related injuries or occupational diseases. Depending upon the circumstances, benefits may include medical care, temporary disability benefits, permanent disability benefits, vocational rehabilitation, and death benefits.

Wisconsin workers' compensation is intended to provide prompt medical care and compensation to injured workers while supporting rehabilitation and return to work.

Payroll's role is generally administrative. Payroll should not make medical determinations or independently decide whether an injury is compensable. Those matters are handled through the workers' compensation claims process.

Wisconsin Workers' Compensation Medical Treatment

Wisconsin workers' compensation can provide medical benefits for qualifying work-related injuries and illnesses. Wisconsin's required notice to injured workers states that an injured employee has the right to choose their own doctor for work injuries.

Payroll should obtain and maintain the appropriate work-status information when medical treatment affects an employee's schedule, wages, or ability to perform regular duties.

Payroll should not interpret medical restrictions or make medical determinations. Questions concerning treatment and work restrictions should be directed to the employee's medical provider, HR department, or workers' compensation claims administrator.

Wisconsin Workers' Compensation Temporary Disability

An employee who cannot work because of a qualifying work-related injury may be eligible for temporary disability benefits. The type and amount of benefits depend on the employee's circumstances and applicable Wisconsin workers' compensation rules.

Payroll should accurately document periods of lost time, partial work, modified duty, wages paid, and employer-provided leave.

Payroll should distinguish workers' compensation payments made by the carrier or self-insured employer from ordinary wages paid through the employer's payroll system.

Wisconsin Workers' Compensation Permanent Disability

Employees who do not fully recover from a qualifying work-related injury may be eligible for permanent partial disability or permanent total disability benefits depending on the circumstances.

Wisconsin's workers' compensation program uses medical information and applicable statutory and administrative standards when determining permanent disability.

Payroll should preserve accurate employment and wage records when a claim involves permanent disability because wage and employment information may be relevant to the administration of the claim.

Wisconsin Workers' Compensation Payment Administration

Insurance carriers and self-insured employers have primary responsibility for processing workers' compensation claims and making payments due to injured workers.

Payroll may be asked to provide wage information, employment information, time records, leave records, and post-injury earnings to support the claims process.

Payroll should avoid independently changing an employee's compensation or leave status based solely on an injury report. Changes should be coordinated with HR, the claims administrator, and the workers' compensation carrier.

Wisconsin Workers' Compensation Modified Duty

An employee recovering from a workplace injury may return to work with restrictions or modified duties when medically appropriate. Payroll should accurately document:

Date modified duty begins
Modified job duties
Hours authorized
Hours actually worked
Reduced schedules
Modified-duty wages
Changes in pay rates
Overtime
Paid leave
Other employer-paid compensation

Wisconsin's required employer notice specifically instructs employers to inform their claims adjuster whether the employer can accommodate restrictions related to a work injury.

Wisconsin Workers' Compensation Return-To-Work

Wisconsin's workers' compensation program emphasizes returning injured employees to work and supporting rehabilitation when appropriate. Payroll should:

Record the employee's return-to-work date
Determine whether the employee returned to regular or modified duties
Track applicable restrictions
Record hours worked
Record changes in wages
Track post-injury earnings
Coordinate PTO, sick leave, and other paid leave
Maintain documentation supporting wage calculations
Notify the appropriate claims administrator of material payroll changes when required

Wisconsin Workers' Compensation Claim Administration

Insurance carriers and self-insured employers have primary responsibility for processing workers' compensation claims and making payments due to injured employees.

The Wisconsin Worker's Compensation Division provides an administrative process for resolving workers' compensation disputes. A party may file a Hearing Application using Form WKC-7 when a dispute requires a hearing.

Payroll professionals generally should not attempt to resolve disputed medical or legal issues. Payroll should provide accurate records and direct substantive claim questions to the appropriate HR, claims-management, insurance, or legal contact.

Wisconsin Workers' Compensation Self-Insurance

Wisconsin permits qualifying employers to self-insure workers' compensation obligations. Self-insured employers assume responsibility for paying qualifying workers' compensation benefits and meeting applicable reporting and administrative requirements.

Self-insured employers should follow Wisconsin DWD requirements for claims administration, reporting, payments, and recordkeeping.

Payroll departments working for a self-insured employer should understand the organization's claims-administration procedures and know which internal or third-party claims administrator is responsible for workers' compensation.

Wisconsin Workers' Compensation Out-of-State Employers

An employer based outside Wisconsin may still have workers' compensation obligations when it has employees working in Wisconsin.

Wisconsin DWD states that an out-of-state employer with employees working in Wisconsin must have workers' compensation insurance with an insurance company licensed to write workers' compensation coverage in Wisconsin and the policy must be endorsed to name Wisconsin as a covered state in Section 3a.

Payroll departments supporting employees in multiple states should verify that the employer's workers' compensation policy covers each jurisdiction where employees work.

Wisconsin Workers' Compensation Safety Programs

Employers should maintain workplace safety programs designed to reduce the frequency and severity of work-related injuries and occupational diseases.

A strong safety program can reduce workers' compensation claims, improve employee safety, and support effective return-to-work practices.

Employers should coordinate workplace safety initiatives with HR, management, workers' compensation representatives, and applicable occupational safety requirements.

Wisconsin Workers' Compensation Administrative Challenges

Wisconsin payroll departments may encounter challenges involving:

Determining whether the employer is required to carry workers' compensation insurance
Maintaining current workers' compensation coverage
Maintaining the required workplace notice
Identifying the appropriate insurance carrier or claims administrator
Meeting the 7-day employer injury reporting deadline
Reporting fatalities within 24 hours
Providing accurate wage information for claims
Completing wage-related documentation
Tracking post-injury earnings
Processing modified-duty wages
Coordinating workers' compensation benefits with employer-paid leave
Handling employees who work in multiple jurisdictions
Maintaining consistent payroll, HR, and timekeeping records
Responding to requests from insurance carriers and the Wisconsin Worker's Compensation Division
Managing return-to-work changes
Understanding the distinction between workers' compensation benefits and regular payroll

Common Wisconsin Workers' Compensation Payroll Errors

Failing to maintain required workers' compensation coverage
Failing to post the required workers' compensation notice
Failing to identify the correct insurance carrier or claims administrator
Delaying notification of a workplace injury
Failing to report an injury claim to the insurance carrier within 7 days
Failing to report a work-related fatality within 24 hours
Using an outdated workers' compensation form
Providing inaccurate wage information
Failing to include applicable earnings in wage documentation
Failing to track post-injury earnings
Failing to document modified-duty hours
Incorrectly treating workers' compensation benefits as regular wages
Processing paid leave without coordinating with HR and the claims administrator
Failing to maintain consistent payroll and timekeeping records
Failing to update payroll when an injured employee returns to work
Making independent decisions about the compensability of a claim
Failing to respond promptly to requests for payroll information

Support And Training Resources

Workers' Comp - Workers' Recovery Professional Associate (WRPA) Certification

Recommended Workers' Compensation Training

How Workers' Compensation Works
Learn the fundamentals of workers' compensation, including claims, benefits, employer responsibilities, and return-to-work considerations.

Workers' Comp Premium Control: Experience Mods, Classifications, and Audit Mastery
Develop a stronger understanding of workers' compensation classifications, experience modification factors, premium management, and insurance audits.

Workers' Comp Workers' Recovery Professional Associate Certification
Build specialized knowledge for professionals involved in workers' compensation and employee recovery.

Other Help

Frequently Asked Questions About Wisconsin Workers' Compensation

Does Wisconsin require employers to carry workers' compensation insurance?

Wisconsin requires employers that meet applicable statutory coverage requirements to carry workers' compensation insurance. Requirements vary depending on the type and size of the employer.

When does workers' compensation coverage begin for a Wisconsin employee?

Wisconsin DWD states that workers' compensation coverage begins on an employee's first day of work, regardless of how long the employee has worked for the employer or whether the employee is in a probationary or training status.

Who administers workers' compensation in Wisconsin?

The Wisconsin Department of Workforce Development's Worker's Compensation Division administers important aspects of Wisconsin's workers' compensation program.

How quickly should an employee report a workplace injury in Wisconsin?

Employees should report work-related injuries or suspected occupational diseases to their employer immediately. Wisconsin generally recommends reporting an injury as soon as possible, and in most situations the employee should report the injury within 30 days.

How quickly must an employer report a workplace injury in Wisconsin?

An insured employer generally must report an injury claim to its workers' compensation insurance carrier within 7 days after actual knowledge of the injury.

How quickly must a Wisconsin employer report a fatality?

A work-related fatality must be reported to the Wisconsin Worker's Compensation Division and the employer's insurance carrier within 24 hours.

What form does an employer use to report a workplace injury in Wisconsin?

Employers use Form WKC-12-E, Employer's First Report of Injury or Disease, to report work-related injuries to their workers' compensation insurance company. Wisconsin also provides a printable WKC-12 version.

When does the insurance carrier report an injury to Wisconsin DWD?

For applicable compensable lost-time injuries, the insurance carrier or self-insured employer generally electronically reports the First Report of Injury to the Worker's Compensation Division within 14 days after the injury.

What happens when an employee loses more than three days of work?

Injuries resulting in more than 3 days of lost time can trigger additional reporting requirements. Insurance carriers and self-insured employers have reporting obligations to the Wisconsin Worker's Compensation Division, including electronic reporting of applicable injury information.

What records should payroll maintain for workers' compensation?

Payroll should maintain accurate records of employee wages, hours, overtime, bonuses, commissions, paid leave, job information, pre-injury earnings, post-injury earnings, modified-duty wages, and other compensation that may be relevant to a claim.

Does Wisconsin require employers to post a workers' compensation notice?

Yes. Wisconsin provides a Notice to Injured Workers and Employers that informs employees and employers of their rights and responsibilities. The notice also provides space for the employer's insurance carrier or claim administrator information.

Can a Wisconsin employer self-insure workers' compensation?

Yes. Qualifying employers may self-insure workers' compensation obligations subject to Wisconsin requirements. Self-insured employers have direct claims-payment and reporting responsibilities.

Does payroll determine whether an injury is covered by workers' compensation?

Generally, no. Payroll's role is to maintain and provide accurate employment and wage information. Questions concerning compensability, medical treatment, disability, or disputed claims should be handled through the employer's HR, claims, insurance, or legal process.

How does payroll help with a Wisconsin workers' compensation claim?

Payroll can provide accurate wage histories, hours worked, overtime, bonuses, commissions, paid leave, reduced schedules, modified-duty earnings, and post-injury wages. This information may be used by the insurance carrier or claims administrator when administering benefits.

Can an injured Wisconsin employee choose their own doctor?

Wisconsin's required workers' compensation notice states that employees have the right to choose their own doctor for work injuries.

What happens when an injured employee returns to work?

Payroll should document the return-to-work date, whether the employee returns to regular or modified duties, hours worked, restrictions, wages, and post-injury earnings. Payroll should coordinate these changes with HR and the workers' compensation claims administrator.

What benefits may Wisconsin workers' compensation provide?

Depending on the circumstances, qualifying workers' compensation claims may provide medical care, temporary disability benefits, permanent disability benefits, vocational rehabilitation, and death benefits.

Where can employers find official Wisconsin workers' compensation information?

Employers can obtain current information, forms, and workers' compensation resources from the Wisconsin Department of Workforce Development's Worker's Compensation Division.

Important Note

This page is provided for general educational purposes and is not legal, insurance, or tax advice. Wisconsin workers' compensation laws, regulations, administrative procedures, forms, insurance requirements, benefit rules, and reporting requirements can change. Employers should verify current requirements with the Wisconsin Department of Workforce Development, their workers' compensation insurance carrier or claims administrator, and qualified legal counsel when appropriate.