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September 10, 2019
2019-1597

No change to Wisconsin income tax withholding tables for 2019 and 2020

According to the Wisconsin Department of Revenue's Wisconsin Tax Bulletin, although the individual income tax rates were reduced for calendar year 2019–2020 under recently enacted budget bills AB 56/Act 9 and AB 251/Act 10, there will be no changes to the withholding tax rates and tables for 2019 or 2020. The withholding tax rates and tables have not changed since April 1, 2014.

The current withholding tables are found in Publication W-166, Wisconsin Employer's Withholding Tax Guide.

Employees who determine that the amount withheld from their wages will be more than the employee's estimated net tax liability for 2019 or 2020 may complete Wisconsin .

Legislation details

Act 9, effective for taxable years beginning on or after January 1, 2019, reduces the individual income tax rate for the second tax bracket from 5.84% to 5.21%.

Act 10 provides for an additional reduction to the first and second individual income tax rate brackets beginning for calendar year 2019 and again for 2020. The changes in income tax rates are to be based on estimated amounts of additional sales and use tax revenue reported to the Department from out-of-state retailers and marketplace providers, as a result of the United States Supreme Court decision in South Dakota v. Wayfair, Inc., which expands Wisconsin's authority to require out-of-state retailers to collect and remit Wisconsin sales and use taxes. The individual income tax rates in effect for taxable year 2020 will remain for each taxable year going forward.

The Department will determine the reduction to the 2019 income tax rates no later than October 20, 2019. After review by the Legislative Audit Bureau (LAB), the 2019 income tax rates will be determined no later than November 10, 2019. For 2020, the Department will determine the reduction to the income tax rates no later than October 20, 2020. After review by the LAB, the 2020 income tax rates will be determined no later than November 10, 2020.

For more information on Wisconsin withholding tax, see the Department's website.

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Contact Information
For additional information concerning this Alert, please contact:
 
Workforce Tax Services - Employment Tax Advisory Services
   • Kenneth Hausser (kenneth.hausser@ey.com)
   • Debera Salam (debera.salam@ey.com)
   • Kristie Lowery (kristie.lowery@ey.com)

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