General Questions
Technical Questions Withholding Tax
- How do I apply for a Withholding Tax Account?
- Should I notify the Wisconsin Department of Revenue if I close my business?
- Do I need to register with the Wisconsin Department of Revenue to withhold Wisconsin income tax?
- How do I notify the Wisconsin Department of Revenue if I move my business or change my mailing address?
- Are extensions available if I can't file my Wisconsin return by the due date?
- What is the deadline for filing my Wisconsin return?
- Am I required to file a Wisconsin Withholding Tax Deposit Report?
- What if I do not receive my Employers Annual Reconciliation of Wisconsin Income Tax Withheld from Wages (Form WT-7)?
- What records should I keep for Wisconsin tax purposes, and how long should I keep them?
- How can I send in money if I do not have the proper Wisconsin forms?
- Who is required to withhold Wisconsin income taxes?
- Will the Wisconsin working families credit allow me to claim the exemption from Wisconsin withholding tax?
You must submit an Application for Business Tax Registration (BTR) to the Wisconsin Department of Revenue. You may apply using the Form BTR-101 or using the Business Tax Online Registration available on our web site. The initial (BTR) application fee is $20 and is valid for two years. The BTR certificate must be renewed every two years. The renewal fee is $10. For more information see Business Tax Registration.
When an employer goes out of business or a new Wisconsin Tax Account Number is required as a result of a change in business entity, the former employer must notify the Department of Revenue of the last date of withholding. Call (608) 266-2776, e-mail sales10@revenue.wi.gov, or provide notification through My Tax Account. The former employer will be sent an Annual Reconciliation of Wisconsin Income Tax Withheld From Wages (Form WT-7), which should be completed.
If the employer ceases to pay any taxable wages or all of the employer exemptions require no tax to be withheld, the employer can request to have the withholding account inactivated.
If taxes are again withheld, the employer can request that the account be reactivated. As long as an employer's account is active, the employer must file Withholding Tax Deposit Reports (Form WT-6), or make the equivalent electronic payments, and an Annual Reconciliation of Wisconsin Income Tax Withheld From Wages (Form WT-7), even if no tax is withheld.
Yes. Every employer who is required to withhold Wisconsin income taxes must register with the Wisconsin Department of Revenue, and obtain a Wisconsin Tax Account Number.
- How do I notify the Wisconsin Department of Revenue if I move my business or change my mailing address?
If you change your business location or change your mailing address you can notify the department by calling 608-266-2776, e-mailing sales10@revenue.wi.gov, or providing notification through My Tax Account.
The Department may grant an extension of one month to file the Annual Reconciliation of Wisconsin Income Tax Withheld From Wages (Form WT-7) and wage and tax statements (Forms W-2). You may request an extension prior to the original due date (January 31) of the annual reconciliation by:
- writing to Wisconsin Department of Revenue, P.O. Box 8902, Madison, WI 53708-8902,
- faxing your request to 608-264-6884
- e-mailing your request to sales10@revenue.wi.gov, or
- submitting a request through My Tax Account.
This one month extension is for the filing of the annual reconciliation and wage and tax statements only. No extension of time can be granted for depositing withheld tax amounts. Underpayments may be corrected by filing an additional Form WT-6 or through My Tax Account.
Note: The date for furnishing wage statements to employees cannot be extended.
Withholding liability is incurred when wages are paid to employees, not when wages are earned.
If your filing frequency is monthly or quarterly, you must file a report and remit the amount withheld on or before the last day of the month following the withholding period.
If your filing frequency is semimonthly, you must file a report and remit the amount withheld from the 1st day through the 15th day of the month on or before the last day of the same month, and you must file a report and remit the amount withheld from the 16th day through the last day of the month on or before the 15th day of the following month. Example: An employer that files on a semi-monthly basis pays employees on January 11. As a result, the amount withheld is reported in the period ending January 15. This report is due to the department by the end of the following reporting period, in this case January 31.
You must file a report even if no tax is withheld during the period covered.
Documents will be considered timely filed if:
- The return is mailed in a properly addressed envelope with the postage duly prepaid,
- The envelope containing the return is postmarked on or before the due date, and
- The return is received by the Department within 5 days of the due date.
Electronic transactions will be considered timely if:
- The transaction enters the system before 4:00 p.m. Central Time on the payment due date.
Every employer must register with the Wisconsin Department of Revenue and obtain a Wisconsin Tax Number (WTN) when the employer has a requirement to begin withholding.
Employers who are registered and have been assigned a WTN must report and pay their withholding tax using one of the following methods:
- WT-6 fill-in form
- Electronic funds transfer
- WT-6 file transmission
- My Tax Account
Annual filers remit withheld taxes with the annual reconciliation Form WT-7. Failure to receive the forms does not relieve the employer from timely reporting and depositing the taxes withheld.
You must submit the Form WT-6 or make an electronic transaction whether or not any taxes were withheld during the period .
For more information, see Wisconsin Publication W-166, Wisconsin Employer's Withholding Tax Guide.
- What if I do not receive an Employer's Annual Reconciliation of Wisconsin Income Tax Withheld From Wages (Form WT-7)?
Form WT-7 may be filed using one of the following methods:
- WT-7 fill-in form
- WT-7 File Transmission
- My Tax Account
You must keep your tax records until the statute of limitation expires for the tax returns on which any of the withheld amounts appear. Usually this is 4 years from the due date of the return or the date filed, whichever is later.
If you are currently registered for a Wisconsin Tax Number (WTN) and have not yet registered for EFT or cannot access the on-line WT-6 fill-in form when a report is due, call (608) 266-2776 or write to the Wisconsin Department of Revenue, P.O. Box 8949, Madison, WI 53708-8949, and request a Form WT-6. You can also contact any of our branch or district offices and request a Form WT-6.
If you are at risk of missing your reporting due date and do not have time for a Form WT-6 to be mailed to you, you may send your deposit with a letter in place of a Form WT-6. The letter should include the legal name of the business, mailing address, WTN, Federal Employer Identification Number (FEIN), and the period covered by the deposit. This should be mailed to the Wisconsin Department of Revenue, P.O. Box 8981, Madison, WI 53708-8981.
This same procedure can be used to make withholding deposits if you have not yet received your WTN. Write "applied for" in place of your WTN. Your deposit will be put in a temporary holding account and then transferred to your account once your WTN has been issued.
Every employer who is:
- Engaged in business in Wisconsin, or
- Licensed to do business in Wisconsin, or
- Transacts business in Wisconsin, or
- Organized under Wisconsin law, or
- Primarily engaged in business outside of Wisconsin who is licensed to do business in Wisconsin or transacts business in Wisconsin
And
- Paid wages to a Wisconsin resident (regardless of where the services were performed), or
- Paid wages to a nonresident (persons domiciled outside of Wisconsin) for services performed in Wisconsin, unless:
- Employer is an interstate rail or motor carrier, subject to the jurisdiction of the Federal Interstate Commerce Commission and the employee regularly performs duties in two or more states.
- Payment is for retirement, pension, or profit sharing benefits received after retirement.
- Employee is a resident of a state with which Wisconsin has a reciprocity agreement. Wisconsin currently has reciprocity agreements with Illinois, Indiana, Kentucky, Michigan, and Minnesota. Persons who employ residents of those states are not required to withhold Wisconsin income taxes from wages paid to such employees. Written verification is required to relieve the employer from withholding Wisconsin income taxes from such employee's wages.
- Employee is a resident of a state with which Wisconsin does not have a reciprocity agreement and either:
- The employer is an interstate air carrier subject to the jurisdiction of the Federal Interstate Commerce Commission and the employee earns 50 percent or less of his or her compensation in Wisconsin, or
- The employer can reasonably expect the annual Wisconsin earnings to be less than $1,500.
- Will the Wisconsin working families credit allow me to claim the exemption from Wisconsin withholding tax?
A working families tax credit eliminates Wisconsin income tax for single persons with income under $10,000 and for married couples with income under $19,000 for 2009. Persons who qualify for the working families tax credit may elect to be exempt from Wisconsin withholding. To claim exemption from Wisconsin withholding, an employee must first determine whether he or she qualifies for the credit and then complete an exemption certificate (Form WT-4B) to give to the employer.
A flyer "Employees - Tax Credit May Permit You to Claim Exemption From Wisconsin Withholding Tax" contains a worksheet for employees to use to determine if they qualify for the working families tax credit. If you do qualify, the flyer contains an exemption certificate (Form WT-4B), which you should detach and submit to your employer. After receiving the certificate, your employer should discontinue withholding Wisconsin income tax from wages paid to you during 2009.
FOR MORE INFORMATION PLEASE CONTACT:
WISCONSIN DEPARTMENT OF REVENUE
Customer Service Bureau
P.O. Box 8949
Madison, WI 53708-8949
Phone: (608) 266-2776
Fax: (608) 267-1030
E-Mail Additional
Questions
Last updated February 17, 2009