The Wisconsin Department of Revenue announced that because businesses are seeing unprecedented impacts from the COVID-19 health emergency, the Department will not revise the state withholding tables at this time. The Department had planned to issue revised income tax withholding tables in April with an effective date of July 1, 2020.

As we reported, the Department previously announced a proposal to extend various tax return and payment due dates including the provision that employers may request a one-month extension to file and pay their income tax withholding (Form WT-6). The request for the extension must be made before the unextended due date of the report through My Tax Account or by emailing DORRegistration@wisconsin.gov. The email request must include the taxpayer's name, address, identification number, and the reporting period for which the extension is requested. ((EY Payroll Newsflash Vol. 21, #106, 3-27-2020.)

Income tax rate reduction details

As we reported, individual income tax rates were reduced for calendar year 2019–2020 under 2019 budget bill AB 56/Act 9 and AB 251/Act 10. (EY Payroll Newsflash Vol. 20, #139, 9-10-2019.)

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

Act 10 provided for an additional reduction to the first and second individual income tax rate brackets for calendar years 2019 and 2020. The changes in income tax rates are 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 U. S. 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 beginning July 1, 2020 are expected to remain for each taxable year going forward.

———————————————

———————————————
ATTACHMENT

EY Payroll News Flash