diff --git a/l10n_us_hr_payroll/data/state/wi_wisconsin.xml b/l10n_us_hr_payroll/data/state/wi_wisconsin.xml
index 0fdb3c86..0af07950 100644
--- a/l10n_us_hr_payroll/data/state/wi_wisconsin.xml
+++ b/l10n_us_hr_payroll/data/state/wi_wisconsin.xml
@@ -37,6 +37,17 @@
         <field name="date_from" eval="datetime(2020, 1, 1).date()"/>
     </record>
 
+    <record id="rule_parameter_us_wi_sit_deduction_rate" model="hr.rule.parameter">
+        <field name="name">US WI Wisconsin SIT Deduction Rate</field>
+        <field name="code">us_wi_sit_deduction_rate</field>
+        <field name="country_id" ref="base.us"/>
+    </record>
+    <record id="rule_parameter_us_wi_sit_deduction_rate_2021" model="hr.rule.parameter.value">
+        <field name="parameter_value">False</field>
+        <field name="rule_parameter_id" ref="rule_parameter_us_wi_sit_deduction_rate"/>
+        <field name="date_from" eval="datetime(2021, 1, 1).date()"/>
+    </record>
+
     <record id="rule_parameter_us_wi_sit_tax_rate" model="hr.rule.parameter">
         <field name="name">US WI Wisconsin SIT Tax Rate</field>
         <field name="code">us_wi_sit_tax_rate</field>
diff --git a/l10n_us_hr_payroll/models/state/wi_wisconsin.py b/l10n_us_hr_payroll/models/state/wi_wisconsin.py
index c1d53bbb..cc818680 100644
--- a/l10n_us_hr_payroll/models/state/wi_wisconsin.py
+++ b/l10n_us_hr_payroll/models/state/wi_wisconsin.py
@@ -29,15 +29,41 @@ def wi_wisconsin_state_income_withholding(payslip, categories, worked_days, inpu
     additional = payslip.contract_id.us_payroll_config_value('state_income_tax_additional_withholding')
     exemptions = payslip.contract_id.us_payroll_config_value('wi_wt4_sit_exemptions')
     exemption_amt = payslip.rule_parameter('us_wi_sit_exemption_rate')
-    tax_table = payslip.rule_parameter('us_wi_sit_tax_rate')[filing_status]
+    # deduction_table introduced in 2022
+    deduction_table = payslip.rule_parameter('us_wi_sit_deduction_rate')
+    if deduction_table:
+        deduction_table = deduction_table[filing_status]
+    # tax_table simplified in 2022
+    tax_table = payslip.rule_parameter('us_wi_sit_tax_rate')
+    if isinstance(tax_table, dict):
+        tax_table = tax_table[filing_status]
 
-    taxable_income = wage * pay_periods
+    taxable_income = wage * pay_periods  # (a)
+    if deduction_table:
+        deduction = 0.0
+        last_wage_cap = 0.0
+        last_deduction = 0.0
+        last_rate = 0.0
+        for row in deduction_table:
+            wage_cap, deduction, rate = row
+            if taxable_income <= wage_cap:
+                if last_rate:
+                    deduction = last_deduction - ((taxable_income - last_wage_cap) * last_rate / 100.0)
+                break
+            last_wage_cap, last_deduction, last_rate = row
+        taxable_income -= deduction  # (b)
+    
+    taxable_income -= exemption_amt * exemptions  # (c)
+    
+    if taxable_income <= 0.0:
+        return 0.0, 0.0
+    
     withholding = 0.0
     last = 0.0
     for row in tax_table:
         amt, rate, flat_fee = row
         if taxable_income <= float(amt):
-            withholding = (((taxable_income - last) * (rate / 100)) + flat_fee) - (exemptions * exemption_amt)
+            withholding = (((taxable_income - last) * (rate / 100)) + flat_fee)
             break
         last = amt