Connecticut Payroll Updates - December 2024
Connecticut Employer’s Tax Guide Highlights (Effective January 1, 2025)
- Withholding Requirements:
- The Employer’s Tax Guide outlines the withholding requirements for employers in Connecticut.
- New legislation eliminates the requirement to withhold income tax from certain retirement income distributions.
- However, withholding is still required for lump sum distributions, defined as:
- Any distribution greater than $5,000.
- Or more than 50% of the payee’s entire account balance, whichever is less.
- Form CT-W4P:
- Payees can request withholding by completing Form CT-W4P, the Withholding Certificate for Pension and Annuity Payments.
- Nonpayroll Amounts:
- A revised publication details withholding requirements for nonpayroll amounts.
- It covers responsibilities for withholding, filing returns, making payments, and amending returns.
- The due date for filing information returns with the Department of Revenue Services (DRS) is January 31, 2025.
- Publication Updates:
- The new guide replaces IP 2024(1) and modifies IP 2024(8).
Connecticut Employer’s Tax Guide with 2025 Withholding Tables
The Connecticut Department of Revenue Services has issued the Employer’s Tax Guide, effective January 1, 2025. The publication explains employer withholding requirements and highlights recent legislative changes that impact 2025 withholding requirements for Connecticut employers. Effective January 1, 2025, new legislation no longer requires payers to withhold income tax from certain retirement income distributions. Payers still are required to withhold income tax from lump sum distributions. A “lump sum distribution” is defined as any distribution greater than $5,000 or more than 50% of the payee’s entire account balance, whichever is less. Payees may request the payer to withhold income tax by completing Form CT-W4P, Withholding Certificate for Pension and Annuity Payments. The publication replaces IP 2024(1). (Connecticut Informational Publication No. 2025(1), 12/17/2024.)
Connecticut Withholding Requirements for Payers of Nonpayroll Amounts
The Connecticut Department of Revenue Services (DRS) has issued a revised information publication discussing withholding requirements for payers of nonpayroll amounts, effective January 1, 2025. The publication explains the withholding tax responsibilities of a payer or employer in Connecticut. It also describes the requirements for nonpayroll income tax withholding, filing nonpayroll withholding returns, making payments, and amending returns. The due date for filing information returns with the DRS is January 31, 2025. Additionally, effective January 1, 2025, new legislation no longer requires payers to withhold income tax from certain retirement income distributions. Payers are still required to withhold income tax from lump sum distributions. A “lump sum distribution” is defined as any distribution greater than $5,000 or more than 50% of the payee’s entire account balance, whichever is less. Payees may request the payer to withhold income tax by completing Form CT-W4P, Withholding Certificate for Pension and Annuity Payments. The revised publication modifies and supersedes IP 2024(8). (Connecticut Informational Publication No. 2025(8), 12/17/2024.)
Connecticut Employer’s Tax Guide with 2025 Withholding Tables
The Connecticut Department of Revenue Services has issued the Employer’s Tax Guide, effective January 1, 2025. The publication explains employer withholding requirements and highlights recent legislative changes that impact 2025 withholding requirements for Connecticut employers. Effective January 1, 2025, new legislation no longer requires payers to withhold income tax from certain retirement income distributions. Payers still are required to withhold income tax from lump sum distributions. A “lump sum distribution” is defined as any distribution greater than $5,000 or more than 50% of the payee’s entire account balance, whichever is less. Payees may request the payer to withhold income tax by completing Form CT-W4P, Withholding Certificate for Pension and Annuity Payments. The publication replaces IP 2024(1). (Connecticut Informational Publication No. 2025(1), 12/17/2024.)
Connecticut Withholding Requirements for Payers of Nonpayroll Amounts
The Connecticut Department of Revenue Services (DRS) has issued a revised information publication discussing withholding requirements for payers of nonpayroll amounts, effective January 1, 2025. The publication explains the withholding tax responsibilities of a payer or employer in Connecticut. It also describes the requirements for nonpayroll income tax withholding, filing nonpayroll withholding returns, making payments, and amending returns. The due date for filing information returns with the DRS is January 31, 2025. Additionally, effective January 1, 2025, new legislation no longer requires payers to withhold income tax from certain retirement income distributions. Payers are still required to withhold income tax from lump sum distributions. A “lump sum distribution” is defined as any distribution greater than $5,000 or more than 50% of the payee’s entire account balance, whichever is less. Payees may request the payer to withhold income tax by completing Form CT-W4P, Withholding Certificate for Pension and Annuity Payments. The revised publication modifies and supersedes IP 2024(8). (Connecticut Informational Publication No. 2025(8), 12/17/2024.)