Wisconsin Administrative Code › Department of Revenue › Chapter Tax 2 - Income Taxation, Returns, Records And Gross Income › Section Tax 2.92 - Withholding tax exemptions

Current through June 24, 2024
(1) An employee is
			 required to provide a completed Form WT-4, "Employee's Withholding Exemption
			 Certificate/New Hire Reporting," to their employer.
(2) An employee who had incurred no Wisconsin
			 income tax liability for the preceding taxable year and anticipates no
			 liability for a current taxable year shall be exempt from withholding if the
			 employee provides his or her employer with a completed Form WT-4, "Employee's
			 Withholding Exemption Certificate/New Hire Reporting" which shows a claim for
			 total exemption. For this purpose, a tax liability is "incurred" if the
			 employee had for the preceding year, or anticipates for the current year, a net
			 Wisconsin income tax due, i.e., gross tax less personal exemptions on a
			 Wisconsin return. If an employee is married, the Wisconsin marital property
			 laws for tax computation shall be considered in determining if the employee may
			 claim this exemption.
(3)
(a) Effective April 1, 1979, an employee may
			 enter into a written agreement with his or her employer to withhold a lesser
			 amount of tax than indicated in the withholding tax tables, if the employee
			 determines the lesser amount approximates the employee's anticipated income tax
			 liability for the year. Form WT-4A, "Wisconsin Employee Withholding Agreement",
			 shall be used for this purpose and a completed copy of the form shall be sent
			 by the employee to the department within 10 days after it is filed with the
			 employer. If the employee fails to notify the department within the required 10
			 days, he or she shall be subject to a penalty of $10, as provided by s.
			 71.83(1) (a) 5,
			 Stats.
(b) The agreement between
			 the employee and employer shall be renewed each year. For calendar year
			 taxpayers, the agreement expires on April 30 of the year immediately following
			 the year in which it was entered into. For fiscal year taxpayers, the agreement
			 expires 4 months following the close of the fiscal year in which entered into.
			 To renew the agreement, an employee shall provide a new form WT-4A to his or
			 her employer and submit a copy of the completed form to the department as
			 provided in par. (a). If a new form WT-4A is executed before the expiration
			 dates described in this paragraph, it shall supersede the previous
			 agreement.
(c) If the department
			 determines that an agreement is incomplete, incorrect, or would result in an
			 insufficient amount of tax being withheld, the department may void the
			 agreement by notification to the employer and employee.
(d) Section
			 71.83(1) (b) 4,
			 Stats., provides that any employee who enters into an agreement with the intent
			 to defeat or evade the proper withholding of tax, shall be subject to a penalty
			 equal to the difference between the amount required to be withheld and the
			 amount actually withheld for the period that the incorrect agreement was in
			 effect.
(e) Under s.
			 71.83(2) (a) 5,
			 Stats., any employee who willfully supplies an employer with false or
			 fraudulent information regarding an agreement with the intent to defeat or
			 evade the proper withholding of tax may be imprisoned not more than 6 months or
			 fined not more than $500, plus the costs of prosecution, or
			 both.