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Summary of differences between federal and state regulations
Income tax withholding
Anyone who maintains an office or transacts business in Connecticut and who is considered an employer for federal withholding purposes must withhold Connecticut income tax, whether or not the payroll department is located in Connecticut. Special rules apply to payers of nonpayroll amounts and payers of compensation to professional athletes and entertainers.
Any employer or payer who is required to withhold Connecticut income tax must register for withholding tax with DRS.
In general, Connecticut law follows the federal law in determining what income is subject to withholding. Employers should consult the IRS Circular E, Employer’s Tax Guide, and Publication 15-A, Employer's Supplemental Tax Guide, to determine federal withholding rules for specific types of income.
Unemployment taxes
All states finance UC primarily through contributions from subject employers on the wages of their covered workers. In addition, three states (Alaska, New Jersey, and Pennsylvania) collect contributions from employees. These taxes are deposited by the state to its account in the UTF in the Federal Treasury, and are withdrawn as needed to pay benefits.
Many states have adopted a higher tax base than what is provided in FUTA. Hawaii's wage base is usually higher and changes periodically. In all states, an employer pays a tax on wages paid to each worker within a calendar year up to the amount specified in state law. In addition, most of the states provide an automatic adjustment of the wage base if federal law is amended to apply to a higher wage base than that specified under state law. As a result of the many variables in states taxable wage bases and rates, benefit formulas, and economic conditions, actual tax rates vary greatly among the states and among individual employers within a state.
Wages subject to unemployment tax in this state equal $15,000.
Minimum and maximum rates in this state are 1.9 and 6.8 %. Rates apply to experience rated employers only and do not include applicable surtaxes or penalties.
State
Contacts
Income tax withholding
Connecticut Department of Revenue Services
Unemployment taxes
Connecticut Department of Labor, Employment security Division
Regulations
Income tax withholding
12-705 Requirements of Withholding
www.cga.ct.gov/current/pub/chap_229.htm#sec_12-705
Unemployment taxes
chapter 567, Unemployment Compensation
www.cga.ct.gov/current/pub/chap_567.htm
Federal
ContactsInternal Revenue Service
Regulations Title 26 Code of Federal Regulations, Internal Revenue