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Connecticut Issues 2018 Employer Withholding Guidance – Tax & Accounting Blog

Connecticut updated its employer withholding tax guide, Circular CT, for 2018 changes. The state issues guidance for employers who withhold Connecticut income tax from employee wages.

Withholding From Pension and Annuity Payments

As of January 1, 2018, payments made by certain payers to residents from taxable pensions and annuity distributions are subject to withholding. The new withholding requirements apply to payers who maintain an office or transact business in Connecticut. Such payers must withhold tax from:

  • an employer pension,
  • an annuity,
  • a profit-sharing plan,
  • a stock bonus,
  • a deferred compensation plan,
  • an individual retirement arrangement (IRA),
  • an endowment, or
  • a life insurance contract.

2018 Withholding Calculation Rules and Tables

The 2018 withholding calculation rules and 2018 withholding tables remain the same as 2017.

General Withholding Guidance

In addition, the guide provides:

  • general withholding rules and instructions,
  • answers to frequently asked questions (FAQs),
  • a calendar of duties,
  • sample remittance forms, and
  • withholding calculation rules and tables for 2018.

Informational Publication 2018(1), Connecticut Department of Revenue Services, December 4, 2017, ¶401-849; superseding Information Publication 2017(1), February 6, 2017, ¶401-819

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Author: CCHTaxGroup

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