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If your small business has employees working in Wisconsin, youll need to withhold and pay Wisconsin income tax on their salaries. This is in addition to having to withhold federal income tax for those same employees. Here are the basic rules on Wisconsin state income tax withholding for employees.
Standard deduction amounts The amount of your standard deduction depends on the filing status you qualify for. In 2022 for example, single taxpayers and married taxpayers who file separate returns can claim a $12,950 standard deduction.
What is the Wisconsin retirement income subtraction? Individuals who receive income from a qualified retirement plan or an individual retirement account (IRA) may subtract up to $5,000 of such retirement benefits when computing their Wisconsin income tax.
The standard deduction is a specific dollar amount that reduces your taxable income. For the 2022 tax year, the standard deduction is $25,900 for joint filers, $19,400 for heads of household, and $12,950 for single filers and those married filing separately.
Taxpayers who are at least 65 years old or blind can claim an additional standard deduction of $1,500 is allowed for 2023 ($1,850 if youre claiming the single or head of household filing status). As with the 2022 standard deduction, the additional deduction amount is doubled if youre both 65 or older and blind.
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Prepare and e-file your IRS and Wisconsin State Tax Return: resident, nonresident, or part-year resident returns included. The IRS and the state of Wisconsin State Tax Agencies require you to e-file a Federal Income Tax Return at the same time you e-file a WI State Tax Return.
You may claim exemption from withholding of Wisconsin income tax if you had no liability for income tax last year, and you expect to incur no liability for income tax this year. To claim complete exemption from withholding use Wisconsin Form WT-4, Employees Wisconsin Withholding Exemption Certificate.
Most states require you to mail in a copy of your Federal Return with your state return.
For the 2021 tax year, your allowable standard deduction will fall within one of the following ranges: Single fillers: $0 $11,200. Married filing jointly: $0 $20,730. Married filing separately: $0 $9,850.
If you filed a federal return you are required to FILE an IL return, but IL does not require you to mail the federal return to them.

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