Withholding Taxes: Wisconsin

This item is part of Withholding Taxes.

The below content should be reviewed in conjunction with the in-depth federal coverage of this topic provided above.

Author: Vicki M. Lambert, The Payroll Advisor

Summary

  • All wages paid to Wisconsin residents are subject to Wisconsin withholding regardless of where the employee works. Certain Wisconsin residents who work in Minnesota are not subject to Wisconsin income tax withholding. All wages paid to nonresidents for services performed in Wisconsin are subject to Wisconsin withholding, with some exceptions. Wisconsin has reciprocal tax agreements in effect with Illinois, Indiana, Kentucky and Michigan. See Withholding on Residents, Nonresidents and Expatriates.
  • All newly hired employees are required to complete and submit to their employer Form WT-4, Wisconsin Withholding Exemption Certificate. Under certain circumstances, employers may have to submit an employee's form to the Department of Revenue. See Employee's Withholding Allowance Certificate.
  • Employers may determine withholding on supplemental wages either by treating the total of the supplemental and regular wages as a single wage payment for the regular payroll period, or by estimating the employee's annual gross salary and applying a flat percentage to the supplemental payments. See Supplemental Wages.