By Payroll and Entitlements Editorial Staff
The Connecticut Department of Revenue Services has revised its tax guide, Circular CT, that provides guidance for employers who withhold Connecticut personal income tax from their employees’ wages in 2019. The withholding tables did not change for wages paid on and after January 1 2019 (see Payroll Management Guide Report Letter 1533/2585, dated January 2, 2019).
Beginning on or after January 1, 2018, payers who maintain an office or transact business in Connecticut and make payments of taxable pensions or annuity distributions to resident individuals are required to deduct and withhold tax from such distributions. This requirement applies to distributions from an employer pension, an annuity, a profit-sharing plan, a stock bonus, a deferred compensation plan, an individual retirement arrangement, an endowment, or a life insurance contract. Form CT-W4, Employee’s Withholding Certificate, has been reduced from four to two pages. The supplemental tables that were part of the form are now available in Informational Publication 2019(7), Is My Connecticut Withholding Correct? Employers are not required to obtain a new copy of Form CT-W4 due to the change; however, employees are required to complete the new form at least once a year if their tax situation changes. The revised guide provides general withholding rules and instructions, answers to frequently asked questions, a calendar of duties, sample remittance forms, and 2019 withholding calculation rules and tables, which are unchanged from 2018. The publication is effective January 1, 2019, and replaces Informational Publication 2018(1). (Connecticut Department of Revenue Services Circular CT, Effective January 1, 2019, Connecticut Employer’s Tax Guide (IP 2019(1), January 1, 2019); Connecticut Department of Revenue Services IP 2019(7), Is My Withholding Correct? Effective January 1, 2019, through December 31, 2019., January 1, 2019; Connecticut Department of Revenue Services IP 2018(8), Connecticut Tax Guide for Payers of Nonpayroll Amounts, November 11, 2019.).
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