Wis. Admin. Code § Tax 2.93 — Withholding from wages of a deceased employee and from death benefit payments

Tax 2.93(1) (1) General. Section 71.64 (1) (a) , Stats., requires employers to withhold Wisconsin income tax from payments of wages “to an employee”. Various types of payments are made to the estate or to beneficiaries of a deceased employee which resulted from the deceased person’s employment. The department shall follow the federal internal revenue service’s policy in determining whether withholding of income tax is required from these payments.

Tax 2.93(2) (2) Payments subject to withholding. An uncashed check originally received by a decedent prior to the date of death and reissued subsequently to the decedent’s personal representative shall be subject to withholding of Wisconsin income tax.

Tax 2.93(3) (3) Payments not subject to withholding. The following types of payments to a decedent’s personal representative or heir shall not be subject to withholding of Wisconsin income tax:

Tax 2.93(3)(a) (a) Payments representing wages accrued to the date of death but not paid until after death.

Tax 2.93(3)(b) (b) Accrued vacation and sick pay.

Tax 2.93(3)(c) (c) Termination and severance pay.

Tax 2.93(3)(d) (d) Death benefits such as pensions, annuities and distributions from a decedent’s interest in an employer’s qualified stock bonus plan or profit sharing plan, as provided in s. 71.63 (6) (j) , Stats.