Wisconsin State Tax Routine (WITX)*

The Wisconsin State Tax Special Routine processing utilizes the following steps:

Line 1

Multiply the employee’s gross wages for the current payroll period by the number of payroll periods in a year to obtain their Annualized Gross Income (GI).

Line 2

Determine the employee’s Deduction Amount*.

Line 3

Deduct Line 2 from Line 1.

Line 4

Determine the employee’s Personal Exemption Amount**.

Line 5

Using the Marginal Tax Rates (DEDX) entries for the Wisconsin State Tax deduction, compute tax on the Taxable Amount (Line 4).

Line 6

Divide the amount on Line 4 by the number of payroll periods in a year to determine the employee’s Wisconsin Withholding Tax for the pay period.

*Determine the Deduction Amount

  1. Decrease the annual gross income by the deduction amount determined from the following formula: 

  1. If annual gross income is less than Minimum Annual Gross Amount (TAXP), deduction amount equals Minimum Standard deduction Amount (TAXP). 

  2. If annual gross income is equal to Maximum Annual Gross Amount (TAXP) or more, deduction amount equals Maximum Standard deduction Amount (TAXP).

  3. If annual gross income is at least Minimum Annual Gross Amount (TAXP), but less than Maximum Annual Gross Amount (TAXP), deduction amount is obtained by subtracting, Base Tax Rate of annual gross income in excess of Minimum Annual Gross Amount (TAXP) from Minimum Standard deduction Amount (TAXP).

** Determine the Personal Exemption Amount 

  1. Take the Annual Exemption Amount on the Tax Parameters (TAXP) entry for the employee’s Wisconsin State Tax deduction and Marital Status * the number of State Tax Allowances on the employee’s Employee Tax Parameter (TAX) or Employee State Tax parameter (TAXS).

Data Setup Considerations

Sites need to ensure they have implemented the following Business Process/Data Setup changes at their site prior to using the Wisconsin State Tax Routine.

  1. The Tax Parameters (TAXP) setup for Wisconsin State Tax Deductions.

  1. The Annual Exemption Amount is the Annual Exemption Amount.

  2. The Minimum Deduction Amount is the Minimum Standard Deduction.

  3. The Base Tax Rate is the Rate.

  4. The Minimum Annual Gross Income in Minimum Annual Gross Amount.

  5. The Maximum Annual Gross Income in Maximum Annual Gross Amount.

  1. The Employee Tax Parameter (TAX) enrollment (Note: this only applies to employees enrolled in a Tax Class (TAXC) that includes a Wisconsin State Tax Deduction).

  1. The State Tax Allowance field captures the employees’ claim for the number of allowances claimed as the exemption amount.

Note: The point 2 functions if the MULTI_STATE_TAX parameter is set to N as part of the Application Parameter (APPCTRL) page, if the parameter is set to Y, then the system functions as per the point 3.

  1. Employee enrolled in the State Tax Enrollment (TAXS) (Note: this only applies to employees enrolled in a State Tax Class (TAXCS) that includes a Wisconsin State Tax Deduction).

  1. The State Tax Allowance field captures the employees’ claim for the number of allowances claimed as the exemption amount.