Wisconsin Withholding Tax Change

The Wisconsin Department of Revenue released revised withholding tables and alternate methods of withholding (Methods A and B), effective January 1, 2009. This change is due to a new top individual income tax bracket of 7.75 percent and bracket adjustment resulting from inflation.

Intuit QuickPayroll is releasing Payroll Update 20919 on August 13, 2009 to comply with these changes. According to the Wisconsin Department of Revenue, these withholding tables or alternate methods of withholding should be implemented no later than October 1, 2009.

Additional information can be found on the Agency’s website and a copy of the revised withholding tables and alternate methods of withholding are included in the updated Wisconsin Employer’s Withholding Tax Guide, Publication W-166 (Rev. 7/09).

Frequently Asked Questions

How do I know if I'm affected?
You may be affected if:

· You currently withhold Wisconsin income taxes from employees; and

· You make withholding tax payments in the State of Wisconsin; or

· If you currently have a valid Wisconsin Employer Identification No.

When are the revised withholding tables and alternate methods of withholding effective?

These changes are effective for taxable years beginning on or after January 1, 2009. The Agency’s website states that the withholding tables or alternate methods of withholding should be implemented no later than October 1, 2009.

When will the updated withholding tables or alternate methods of withholding be available in Intuit QuickPayroll?

Intuit QuickPayroll will modify the withholding tax tables in Payroll Update 20919 scheduled for release on August 13, 2009. Intuit QuickPayroll uses the Alternate Method B to calculate Wisconsin Income Tax withholding.

Do I have to adjust withholding taxes calculated before I install Payroll Update 20919?

You do not need to make any adjustments to withholding taxes that were calculated using the prior withholding tables.

What do I need to do?

You will need to download and install Payroll Update 20919 as soon as it is released so the correct amount of Wisconsin withholding taxes are calculated and withheld from employee paychecks going forward.

For more information on how to download and install a Payroll Update, click on the Help menu, select User’s Guide from the drop down list, click on the Index tab, and then type “Updating” in first field.  Help is provided for both downloading and installing Payroll Updates.