How to Complete and File Wisconsin Form PW-1: Rates and Deadlines

Wisconsin Form PW-1 is the annual return a pass-through entity uses to report and pay Wisconsin withholding tax on income allocated to its nonresident owners. Any partnership, S corporation, LLC taxed as either, estate, or trust with Wisconsin-source income flowing to a nonresident partner, member, shareholder, or beneficiary must file it. The entity files, not the owner, and the return is due by the 15th day of the 3rd month after the tax year closes for S corporations, partnerships, and LLCs, or the 4th month for estates and trusts.¹

Which Entities Have to File

A pass-through entity files one PW-1 covering all of its nonresident owners for the year, including those who qualify for an exemption. Partnerships, S corporations, LLCs taxed as either, and estates or trusts that distribute income to nonresident beneficiaries all fall inside the rule.²

Tiered structures file at both levels. When a lower-tier entity withholds on behalf of an upper-tier entity, the upper-tier entity still files its own PW-1 to report the withholding that then flows to its own nonresident owners.³

One boundary worth flagging: nonresident owners included on a Wisconsin composite return (Form 1CNS or 1CNP) still appear on the entity’s PW-1 with withholding paid. The composite filing does not replace the PW-1.

Withholding Rates

The rate is set to the highest tax bracket for the type of taxpayer the owner is:⁴

Individuals, estates, and trusts: 7.65%.
Corporations, partnerships, and LLCs: 7.9%.³

Each owner’s share of Wisconsin taxable income is multiplied by the rate matching the owner’s taxpayer type. The 2025 PW-1 instructions assign a tax-form code to each type — for instance, code 1NPR (nonresident individual filer) carries the 7.65% rate, and code 5S (S corporation) carries 7.9%.

Owners Who Do Not Trigger Withholding

Three situations excuse the entity from withholding on a particular owner:⁴

The owner is exempt from Wisconsin income or franchise tax, such as a 501(c)(3) with no unrelated business income. The entity must obtain a written statement explaining the exemption and attach it to its own income or franchise tax return.
The owner’s share of Wisconsin income from the entity is less than $2,000 for tax years beginning on or after January 1, 2024. The threshold was $1,000 before 2024.¹
The owner has filed Form PW-2 and received Department of Revenue approval, meaning the owner will make Wisconsin estimated payments personally. Until the entity holds an approved copy of the PW-2, it must keep withholding.⁵

Owners below the $2,000 threshold are automatically exempt and should not file a PW-2. Owners on a composite return are not eligible for the PW-2 exemption.

Quarterly Estimated Payments

Withholding is not saved for the annual return. Quarterly estimated payments are due on or before the 15th day of the 3rd, 6th, 9th, and 12th months of the entity’s tax year. A calendar-year entity pays by March 15, June 15, September 15, and December 15. Weekend and holiday due dates shift to the next business day.¹

Underpaid installments accrue interest at 12% per year from the installment’s due date to the earlier of payment or the unextended return deadline. Two safe harbors block that interest: total withholding under $500 for the year, or under $5,000 combined with zero withholding liability in the prior 12-month tax year.⁶

Completing the Form

Before starting, collect each nonresident owner’s name, address, taxpayer identification number, and share of Wisconsin taxable income for the year.³

Part 1: Entity Information and Tax Computation

Enter the entity’s name, FEIN, and a contact person authorized to discuss the return. Then complete Items A through D:

Item A: check the box for the entity’s income or franchise tax return (Form 5S, Form 3, or Form 2).
Item B: check if the entity elected to pay tax at the entity level under section 71.365(4m)(a) or 71.21(6)(a).
Item C: total Wisconsin taxable income passing through the entity.
Item D: any income received from a lower-tier entity that elected entity-level taxation.

Lines 1 through 13 reconcile total withholding (drawn from Part 2) against quarterly estimated payments, withholding received from lower-tier entities, and any credits from Forms WT-11. The result is a balance due on Line 11 or an overpayment on Line 12. Overpayments can be credited toward next year’s estimated withholding.

Part 2: Nonresident Owner Detail

Each nonresident owner gets a separate line with six columns:

Column A: owner’s name and address.
Column B: FEIN or Social Security number.
Column C: tax-form code for the owner’s taxpayer type, which selects the 7.65% or 7.9% rate.
Column D: whether the owner holds an approved Form PW-2 exemption or a Continuous PW-2 Exemption letter.
Column E: the owner’s share of Wisconsin taxable income, including separately stated items, gains, losses, and guaranteed payments.
Column F: gross withholding, Column E multiplied by the applicable rate.

Owners with an approved PW-2 or income below $2,000 are still listed, but the withholding columns reflect the exemption. The Part 2 total feeds Part 1, Line 1.

Part 1A: Tiered Entity Information

When the filing entity received withholding from a lower-tier pass-through entity, list that entity’s name, FEIN, and the amount withheld. This section prevents the same income from being withheld on twice.

Annual Filing Deadlines

The PW-1 due date follows the entity type:¹

S corporations, partnerships, and LLCs: the 15th day of the 3rd month after the tax year closes. March 15 for calendar-year filers.
Estates and trusts: the 15th day of the 4th month after the tax year closes. April 15 for calendar-year filers.

Weekend and holiday deadlines move to the next business day.

How to File

Wisconsin requires the PW-1 to be filed electronically. Two channels are available:²

The Federal/State E-File Program, using approved third-party tax software that supports Wisconsin PW-1.
My Tax Account, the department’s free online portal, available around the clock.

Paper PW-1 returns are not accepted. Blank PDFs on the department’s withholding tax forms page are for reference; the filing itself has to go through one of the electronic channels.⁷

Penalties for Missing or Underpaying

Failing to withhold triggers a penalty of 5% of the tax that should have been withheld for the first month, plus 5% for each additional month, capped at 25%. The penalty still applies even if the nonresident owner later files a Wisconsin return and pays the tax individually.⁶

If less than 90% of the total withholding tax due is paid by the unextended return deadline, the shortfall picks up delinquent interest at the same rate applied to unpaid income and franchise taxes. That runs on top of the 12% interest on underpaid quarterly installments.

Form PW-2 From the Owner’s Side

Nonresident owners who prefer to handle their own Wisconsin estimated payments can request an exemption from entity-level withholding by filing Form PW-2 directly with the department. One PW-2 covers a single tax year but can list multiple pass-through entities.⁵

The PW-2 is due by the last day of the first month after the entity’s tax year closes for S corporations, partnerships, and LLCs, or the last day of the second month for estates and trusts. The department responds in about 30 days. Until the entity has an approved copy in hand, it keeps withholding on that owner.

1
Wisconsin Department of Revenue. Pass-Through Entity Withholding Common Questions
2
Wisconsin Department of Revenue. Pass-Through Entity Withholding
3
Wisconsin Department of Revenue. 2025 Wisconsin Form PW-1 Instructions
4
Wisconsin State Legislature. Wisconsin Statutes 71.775
5
Wisconsin Department of Revenue. 2025 Wisconsin Form PW-2 Instructions
6
Wisconsin State Legislature. Pass-Through Entity Withholding Common Questions
7
Wisconsin Department of Revenue. Withholding Tax Forms