Connecticut Payroll Instructions

Payroll Links

Goldenseal Payroll Software Info

US Federal Withholding Tables

Free 2021 Payroll Tax Table Updates

Other Links

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. The "jump" intervals in the tax credit tables are definitely the weirdest in North America.

The tables have changed in 20 of the past 30 years, including two complete revisions to the calculation methods, and frequent tinkering with the number of steps. We really dread doing this state, every year.

One withholding tables changed slightly in 2019. Tables were unchanged for 2020 and 2021 (phew!).

NOTE: In 2015, Connecticut added a new Table C 3% Tax Rate Phase-Out Add-Back (we're not making that up!) which applies to annual wages between $50K and $100K per year. Also, a new Table D Tax Recapture that applies to annual wages between $200K and $700K. Frankly, the adjustments are small, and adding the new tables required so much extra programming that we decided to skip them. We only have room for four computation tables, and CT already uses them all. No other US state needs more than two.

Come on, CT legislators, enough is enough! How about, look at the tax formulas for any other state in the US? Mathematically speaking, i t is possible to match any desired "tax curve" with a single step table.

Click here to download free updates for Connecticut and federal payroll tax tables. Turtle Creek Software provides updated tax withholding tables around the first of each year.

Connecticut State 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 in your Goldenseal company file, follow these steps:

  1. Choose Employees from the Accounts menu.
  2. Locate the employee record.
  3. Click the Payroll Setup button.
  4. Enter the employee's marital status into the Marital Status field. Choose either Single or Married.
  5. 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.
  6. Enter the number of federal dependents into the Federal Exemptions field.
  7. Enter the number of Connecticut state dependents into the State Exemptions field.
  8. Click OK.

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 State Unemployment Tax Instructions

In 2021, the Connecticut SUTA tax (unemployment insurance) applies to the first $15,000 in annual wages for each employee (unchanged since 1999). After the first year, the rate 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.

Connecticut Marital Status

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.

Connecticut Tax Contacts

Withholding tax website

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

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

Official State Lawn Ornament

Garden gnome, carrying briefcase and waiting for commuter train.