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Connecticut State Income Tax Withholding Changes Effective 8/1/2011

edited Aug 25, 2011 4:04AM in HCM - JDE1 (MOSC) 1 comment
The Connecticut Department of Revenue Services has published Connecticut withholding tax changes which employers must implement for wages paid on or after August 1, 2011.
The tables and rules are revised to take into account recent legislation that raises personal income tax rates retroactively to January 1, 2011. The legislation increases the number of tax brackets from three to six (3%, 5%, 5.5%, 6%, 6.5%, and 6.7%), and phases out the 3% tax rate for taxpayers with state-adjusted gross income over certain amounts. The amount excluded from the 3% rate is taxed at the 5% rate. Additionally, there is a requirement to recapture tax from taxpayers over certain state-adjusted gross income amounts. The legislation requires employers to deduct catch-up withholding for the current year, beginning

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