The Connecticut Department of Revenue has posted new revised 2015 Withholding Calculations Rules on their website, effective August 1, 2015.
This article will also be in effect for 2016.
Any pay checks dated in 2015 from August 1st and future - an action required may need to be taken.
You may need to update your employee Connecticut Withholding set up in QuickBooks if you have:
- An employee that is paid over $345,000 with Withholding Code A, D or F.
- An employee is paid over $552,000 for Withholding Code B.
- An employee paid over $600,000 annually in 2015 and has chosen the filing status of "Withholding Code C".More information is provided in Frequency Asked Questions section.
You are an employer who pays wages in the State of Connecticut and have an active Payroll Subscription.
Frequently Asked Questions
What do I need to do?
Download the most recent Payroll Update as soon as it is released. This payroll update includes the changes to the revised withholding tax tables. An action required may need.
What if I subscribe to the Disk Delivery service?
The next disk delivery is scheduled for September and will include these updates. We highly recommend that you download and install the payroll update if you have internet access. QuickBooks Desktop software downloads and installs the update for you if you have Automatic Updates turned on and have selected all updates to download automatically. Click here for more information and instructions.
What if I have an employee whose gross wages that fall into the categories that will require manual entries on the employee level?
Once you have downloaded the Payroll Update, a manual calculation of taxes will need to be done if you have an employee(s) whose
annual gross wages are over -
-$345,000, Codes A, D or F,(additional tax suggested $8.66 weekly.)
-$552,000 Code B, (additional tax suggested $13.85 weekly.)
-$600.000 and has selected the Filing Status of Withholding Code C.
(additional tax suggested $51.93 weekly)
Connecticut states that employers are to pay their employees weekly = 52 time a year.
What do I have to do to manually calculate the withholding tax:
- Add any Extra Withholding amount requested by your employee to Step 2 (either from the Form CT-W4, line 2, or the amount currently entered in the Extra Withholding field in the employee State tab in QuickBooks Desktop).
- Enter the total withholding tax amount in the Extra Withholding field in the employee State tab in QuickBooks Desktop.
a. From the Employees menu, select Employee Center.
b. Double click on an employee who is subject to the Connecticut Withholding.
c. QB2012 and below: Click the Change Tabs drop-down arrow and select Payroll and Compensation Info. Click on the Taxes button and click on the State tab.
d. QB2013: Click the Payroll Info tab. Click on the Taxes button and click on the State tab.