Withholding Tax Information For Wisconsin Residents Employed In Another State Sheet printable pdf download

Withholding Tax Information For Wisconsin Residents Employed In Another State Sheet

Withholding Tax Information For

Wisconsin Residents Employed in

Another State

With the end of the income tax reciprocity agreement between

Minnesota and Wisconsin, some employers (those who have nexus in

both Wisconsin and Minnesota) will find that they are required to

withhold both Wisconsin and Minnesota income tax from the wages of

Wisconsin residents. This could cause problems for those Wisconsin

residents who, when they file their Wisconsin income tax return, will be

eligible for a credit for tax paid to Minnesota and, as a result, will have

had too much Wisconsin tax withheld.

There are two methods employees can use to decrease their Wisconsin

withholding if they determine that they will be over withheld when

filing their Wisconsin income tax returns.

The first is to determine if the Wisconsin withholding can be reduced a

sufficient amount by claiming the maximum number of exemptions

allowed on Wisconsin Form WT-4, Employee's Wisconsin Withholding

Exemption Certificate. If an employee is not claiming the maximum

number of exemptions allowed, he/she may decrease the withholding

by filing a new Form WT-4 with the employer and claiming an

increased number of exemptions. If an employee is claiming the

maximum number of exemptions allowed and withholding is still more

than the employee's estimated net tax liability for the year, the

employee should then file Form WT-4A.

Form WT-4A, Wisconsin Employee Withholding Agreement, may be

filed by an employee who determines that the amount withheld from

his or her wages will be more than the employee's estimated net tax

liability for the year. Form WT-4A is an agreement between the

employee and employer that a lesser amount will be withheld from the

employee's wages than is provided for in the Wisconsin income tax

withholding tables. A worksheet is included on the Form WT-4A to

determine the estimated net tax liability for the year and the amount

that should be withheld.

Form WT-4A must be filed yearly with the employer and the

Department of Revenue. For example, the 2010 Form WT-4A expires

on April 15, 2011. The employee must then file a 2011 Form WT-4A if

he/she wants to adjust withholding for 2011.

Copies of Forms WT-4 and WT-4A are available from the department's

web site at:

Last updated December 21, 2009

Withholding Tax Information For Wisconsin Residents Employed In Another State Sheet