The filer will get a rejection or error message if either (1) the total withholding tax reported on Form WT-7 is more than the total withholding tax reported on Forms WT-6 filed or (2) one or more Forms WT-6 have not been filed. Forms WT-6 can be in pending status with a future payment date.

The Wisconsin Department of Revenue (Department) announced that beginning January 1, 2019, employers filing quarterly, monthly, or semi-monthly withholding returns and payments cannot submit Form WT-7, Employers Annual Reconciliation of Wisconsin Income Tax Withheld, electronically until all Form WT-6, Withholding Tax Deposit Reports, for the year are filed. (2018 Wisconsin tax bulletin, October 31, 2018.)

The Department believes that this new requirement will reduce the number of penalties imposed on Forms WT-7 for amounts due and reduce appeals.

Example 1: An employer files withholding deposits monthly. The WT-7, whether filed by the employer or payroll service provider, cannot be filed until after the December WT-6 has been filed.

Example 2: An employer filed all monthly Forms WT-6. However, when entering information for Form WT-7 and Forms W-2, the employer identified the June Form WT-6 filed was understated by $100. Before filing Form WT-7, Form WT-6 should be filed for the June period to report the additional $100.

Note: Quarterly, monthly, and semi-monthly filers must file an electronic Form WT-6 for each required reporting period even if no tax is withheld for the period.

Threshold for mandatory electronic reporting of Forms W-2 reduced

As we previously reported, an employer or payer required to file 10 or more Forms W-2 or 10 or more of any one type of information return (i.e., Form 1099) with the Department must file such returns electronically. The prior threshold was 50 or more. (EY Payroll Newsflash Vol. 18, #201, 12-1-2017.)

The due date for filing calendar year 2018 Forms W-2 and information returns is January 31, 2019. The prior due dates for filing statements of nonwage payments and rent and royalties with the Department were February 28 and March 15, respectively.

A 30-day extension is available for filing Forms W-2 and information returns. Under prior law, a 60-day extension period was available for rent and royalty statements and nonwage statements.

See the Department's website for additional information.

The Department's 2018 Withholding Tax Update will be released before the end of 2018 to the Department's website. For more information on Wisconsin withholding, see the Department's website.

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EY Payroll News Flash