Connecticut Payroll Instructions

For more about Goldenseal payroll accounting software, click here.
For more about US Federal withholding in the Goldenseal payroll software, click here.
To download free updates for Connecticut and federal payroll tax tables, click here. Turtle Creek Software provides updated tax withholding tables around the first of each year.

Connecticut has state income tax withholding, using multiple payroll tax tables. The Connecticut tax calculation is by far the most complicated for any US state (it includes an initial exemption table, a main tax table and a tax credit table). Withholding rates did not change in 2005 (they have changed in 11 of the past 15 years, including two major changes to the calculation methods).

Connecticut Withholding Instructions

You will need to assign different Tax Packages to employees, depending on their filing status. The Marital Status field in each Employee account is only used for Federal taxes.

To assign tax packages and enter withholding information for an employee, follow these steps:

1. Choose Employees from the Accounts menu.
2. Locate the employee record.
3. Enter the employee's marital status into the Marital Status field. Choose either Single or Married.
4. Enter the appropriate tax package into the Tax Package field. Base it on their filing status from Line 1 from Form CT-W4 (status A, B, C or D), see note below.
5. Enter the number of federal dependents into the Federal Exemptions field.
6. Enter the number of Connecticut state dependents into the State Exemptions field.

If any additional amount is to be withheld, enter this amount into the State Withhold field in the Employee Account. If there is a claimed amount to be subtracted from annual withholding, as indicated on Line 3 from Form CT-W4, enter this as a negative amount into the State Withhold field.

NOTE: Connecticut state tax is calculated using a triple table method. Filing statuses A through C have exemptions and personal tax credits that are based on annual wages. Filing status D receives no exemptions or tax credits. Taxable income is determined by a standard step table.

Connecticut Unemployment Tax Instructions

The Connecticut SUTA tax (unemployment insurance) applies to the first $15,000 in annual wages for each employee. The starting rate for new companies in 2005 is 2.7%. After that it can range between 1.9% and 6.8%, depending on past experience.

To enter the Connecticut SUTA tax rate for your business in the Goldenseal payroll software, follow these steps:

1. Choose Payroll Setup from the Costs menu, and choose Tax Items from the submenu.
2. You'll see a list of Tax Items. Locate your state's SUTA tax in the list, and double-click on it. HINT: If you don't see Connecticut SUTA in the list, you'll need to import Connecticut payroll info first.
3. Enter the percentage rate that you pay into the field to the right of Calculation method.
4. If the cutoff amount has changed, enter it into the dollar field to the right of First Adjustment.

Enter the employee's marital status for federal withholding. For Connecticut state taxes, enter the appropriate Tax Package for each employee, based on their marital status and other withholding details.

Contacts

Payroll Tax Office-- 860 297-5962
SUTA rate info-- 860 566-5180

Connecticut Department of Revenue Svcs.
Box 2997 Hartford CT 06104-2997

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