The state of Wisconsin implemented new
state income tax withholding tax tables and rates to be implemented
on/after April 1, 2014.
As is often the case, a change in a
state's withholding tax rates often does not require an Advanced
Accounting software update due to the ability of the end user to
maintain standardized tables, particularly when a state follows an
approach similar to that of the Internal Revenue Service's annualized
rates and related formula structure.
Wisconsin is somewhat unique in
providing two alternative annualized methods, referred to as Method A
and Method B. The rates computed by these methods produce similar,
but not exactly the same, withholding amounts. These calculations
in turn will not exactly match, but will be close, to amounts listed
in withholding tables for manual look-up.
Since at least 1988, Advanced
Accounting has used Wisconsin's Method B approach since it most
closely approximates the typical annualized schedule logic. And, as
is also typical, there is a separate rate withholding schedule for
employees that have a withholding status of “Single” versus
“Married.”
The only piece of hard coded
programming logic in Wisconsin’s formula involves a $22 amount per
state exemption claimed that is deducted from the amounts computed by
the standardized annualized tables (after which the calculated amount based on previously annualized wages is then de-annualized based on the number of days in the current pay period). We could also
make that an end user managed value, but this $22 amount has been the
same since at least 2004.
We also could have just as easily (and in
fact initially did) use Method A to meet the April 1, 2014 changes
for Wisconsin, but it would have involved using more internally hard
coded logic compared to Method B, and would therefore make the system
less flexible for future changes. So we have reverted those changes
to again rely on a Method B withholding schedule structure.
Advanced Accounting users that have
employees that are subject to Wisconsin state income tax withholding
therefore only need to update the WIS (Wisconsin Single) and WIM
(Wisconsin Married) tax codes in payroll (PR) module option K
(Maintain Tax Tables) as outlined on page 45 of the Wisconsin
Withholding Tax Guide Effective for Withholding Periods Beginning On
or After April 1, 2014, Publication W-166 (1/14).
For end user
convenience, a link to a PDF that shows what these should look like
from within the Advanced Accounting software is contained below.
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