DRS: Managing Withholding Tax

 
Managing Withholding Tax Information

 
 
State Withholding is the money an employer withholds from each employee's wages to help prepay the state income tax of the employee.  An employer must withhold Connecticut tax if the employee is a resident of Connecticut, performing services in the state.  Wages of a nonresident are subject to Connecticut income tax withholding if the wages are paid for services performed in Connecticut.  The employer remits the withholding to the state and will issue the employee a W-2 statement indicating the amount of state income tax withheld for the employee.
 

  1. What Forms do I File and When Are They Due?
  2. Withholding Tax Forms

How to File Withholding Tax
  1. On-Line using TSC
  2. Over the telephone using our Business Telefile System
  3. By mail using the current year paper returns

Online Filing Options
  1. Federal/State Employment Taxes (FSET) Program

What Forms Do I File and When Are They Due?
 
Wage Filers
 

Form Purpose

Employers

Household Employers

Seasonal*

Agricultural*

Weekly and Monthly

Quarterly

To make your withholding tax payments:

Form CT-WH, Connecticut Withholding Tax Payment Form

Form CT-941, Connecticut Quarterly Reconciliation of Withholding

Form CT-941 HHE, Connecticut Reconciliation of Withholding for Household Employers

Form CT-941, Connecticut Quarterly Reconciliation of Withholding

Form CT-941, Connecticut Quarterly Reconciliation of Withholding

To file your quarterly reconciliations:

Form CT-941, Connecticut Quarterly Reconciliation of Withholding

Form CT-941, Connecticut Quarterly Reconciliation of Withholding

N/A

To file your annual reconciliations:

Form CT-W3, Connecticut Annual Reconciliation of Withholding

Form CT-W3, Connecticut Annual Reconciliation of Withholding

Form CT-941 HHE, Connecticut (Annual) Reconciliation of Withholding for Household Employers

Form CT-W3, Connecticut Annual Reconciliation of Withholding

Form CT-W3, Connecticut Annual Reconciliation of Withholding

To submit W-2 form:

Form CT-W3, Connecticut Annual Reconciliation of Withholding

Form CT-W3, Connecticut Annual Reconciliation of Withholding

Form CT-W3 HHE, Connecticut Annual Reconciliation of Withholding for Household Employers

Form CT-W3, Connecticut Annual Reconciliation of Withholding

Form CT-W3, Connecticut Annual Reconciliation of Withholding

* You must request and receive permission from DRS to file as a seasonal or agricultural filer.

 
 

Weekly, Monthly, and Quarterly Remitter Due Dates

Form

Weekly Remitter

Monthly Remitter

Quarterly Remitter

Form CT-WH

Payroll paid on a Saturday, Sunday, Monday, or Tuesday, the due date is the second Wednesday following the payment. (See Weekly Amounts Paid on a Saturday, Sunday, Monday, or Tuesday, below.)

Payroll paid on a Wednesday, Thursday, or Friday, the due date is the Wednesday following the payment. (See Weekly Amounts Paid on a Wednesday, Thursday, or Friday, below)

The fifteenth day of the following month. Example: If payroll amounts are paid on March 7, Form CT-WH is due April 15.

N/A – Payments are made with Form CT-941.

Form CT-941

Last day of the month following the quarter. Example: First quarter is January 1 through March 31 - the due date is April 30.

Form CT-W3

Paper: Last day of February. Electronic: Last day of March.

Household Employers Due Dates

 

Form

Annual Remitter

Form CT-941 HHE

April 15

Form CT-W3 HHE

Paper: Last day of February. Electronic: Last day of March.


Seasonal* Due Dates

 

Form

Quarterly Remitter

Form CT-941

For each active quarter – Last day of the month following the quarter. Example: First quarter is January 1 through March 31 - the due date is April 30.

Form CT-W3

Paper: Last day of February. Electronic: Last day of March.


Agricultural* Due Dates

 

Form

Annual Remitter

Form CT-941

January 31

Form CT-W3

Paper: Last day of February. Electronic: Last day of March.

You must request permission from DRS to file as a seasonal or agricultural filer.


Weekly Amounts Paid on a Saturday, Sunday, Monday, or Tuesday

Payroll paid on a Saturday, Sunday, Monday, or Tuesday, is due the second Wednesday following the payment.  Example: Payroll paid on Monday the 8 is due Wednesday the 17.

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Weekly Amounts Paid on a Wednesday, Thursday, or Friday

Payroll paid on a Wednesday, Thursday, or Friday, is due the Wednesday following the payment.
Example: Payroll paid on Thursday the 4 is due Wednesday the 10.

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Connecticut Payers of Nonpayroll Amounts

What Forms Do I File and When Are They Due?

 

NON-WAGE

 

Form Purpose

Amounts Reported on Forms

1099-MISC, 1099-R, and W-2G

Athletes and Entertainers

To make your withholding tax payments:

Form CT-8109, Connecticut Withholding Tax Payment Form for Non-payroll Amounts

Form CT-8109, Connecticut Withholding Tax Payment Form for Non-payroll Amounts

To file your quarterly reconciliations:

N/A

N/A

To file your annual reconciliations:

Form CT-945, Connecticut Annual Reconciliation of Withholding for Non-payroll Amounts

Form CT-945 ATHEN, Connecticut Annual Reconciliation of Withholding for Non-payroll Amounts

To submit W-2 form:

Form CT-1096, Connecticut Annual Summary and Transmittal of Information Returns

Form CT-1096 ATHEN, Connecticut Annual Summary and Transmittal of Information Returns

Weekly, Monthly, and Quarterly Remitter Due Dates

Form

Weekly Remitter

Monthly Remitter

Quarterly Remitter

Form CT-8109

Nonpayroll amounts paid on a Saturday, Sunday, Monday, or Tuesday, are due the second Wednesday following the payment. (See Weekly Amounts Paid on a Saturday, Sunday, Monday, or Tuesday, below.)

Payroll amounts paid on a Wednesday, Thursday, or Friday, are due the Wednesday following the payment. (See Weekly Amounts Paid on a Wednesday, Thursday, or Friday, below)

The fifteenth day of the following. Example: If nonpayroll amounts were paid on March 7, Form CT-8109 is due April 15.

Last day of the following month. 1st (Jan. – Mar.) is due April 30.

2nd (Apr – Jun) is due July 31

3rd (Jul-Aug) is due September 30

4th (Sep – Dec) is due January 31

Form CT-945

January 31 or February 10 only if you have made timely deposits and your withholding tax is paid in full for the year

Form CT-1096

Paper: Last day of February. Electronic: Last day of March.

Athletes and Entertainers Due Dates

Form

Weekly Remitter

Monthly Remitter

Quarterly Remitter

Form CT-8109

Nonpayroll amounts paid on a Saturday, Sunday, Monday, or Tuesday, the due date is the second Wednesday following the payment. (See Weekly Amounts Paid on a Saturday, Sunday, Monday, or Tuesday, below.)

If nonpayroll amounts are paid on a Wednesday, Thursday, or Friday, due date is the Wednesday following the payment. (See Weekly Amounts Paid on a Wednesday, Thursday, or Friday, below)

The fifteenth day of the following month. Example: If nonpayroll amounts were paid on March 7, Form CT-8109 is due April 15.

Last day of the following month.

1st (Jan. – Mar.) is due April 30.

2nd (Apr – Jun) is due July 31

3rd (Jul-Aug) is due September 30

4th (Sep – Dec) is due January 31

Form CT-945 ATHEN

January 31 or February 10 only if you have made timely deposits and your withholding tax is paid in full for the year

Form CT-1096 ATHEN

Paper: Last day of February. Electronic: Last day of March.


 

Nonpayroll Amounts Paid on a Saturday, Sunday, Monday, or Tuesday

Nonpayroll amounts paid on a Saturday, Sunday, Monday, or Tuesday, are due the second Wednesday following the payment. (Ex: Nonpayroll paid on Monday the 8 is due Wednesday the 17.)

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Nonpayroll Amounts Paid on a Wednesday, Thursday, or Friday

Nonpayroll amounts paid on a Wednesday, Thursday, or Friday, are due the Wednesday following the payment. (Ex: Nonpayroll paid on Thursday the 4 is due Wednesday the 10.)

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Late filing of Withholding tax returns 

PAPER FILING

PENALTY - Employers who fail to comply with the requirements to withhold Connecticut income tax are subject to penalties, including:

The penalty for late payment or underpayment of tax due is 10% of the amount due on all returns including payments made with an electronically-filed Form CT-WH and Form CT-8109, Connecticut Withholding Tax Payment Form for Nonpayroll Amounts.

In the event no tax is due, the Commissioner of Revenue Services may impose a $50 penalty for failure to file any return or report that is required by law to be filed.

INTEREST - If you are filing a late or amended return, interest is computed on the underpayment at the rate of 1% per month or fraction of a month from the due date until the date of payment.

ELECTRONIC FILING - The penalty for an electronically late filed return is:

  • 2% of an EFT payment not more than 5 days late;
  • 5% of an EFT payment more than 5 days but not more than 15 days late; and 
  • 10% of an EFT payment more than 15 days late.
  • Interest is charged at the rate of 1% per month or fraction of a month from the due date until the date of the payment.  If you do not include the penalty and interest with your payment of tax, you will be billed.

Common Filing Errors to Avoid
  1. Mandatory electronic filers must file and pay electronically to avoid non-compliance fees.
  2. Do not skip filing a return because you have no withholding to report.  You MUST file a ZERO return.
  3. Do not register for withholding because you anticipate hiring employees in the future.  Once you are registered you are required to file returns, so do not register for withholding until you are absolutely certain you are ready to hire employees.

Filing amended withholding returns
 
FORMS CT-941 & CT-945 - Use Form CT-941X, Amended Quarterly Reconciliation of Withholding, to correct the error. You must file a separate Form CT-941X for each quarter that was filed in error.  To claim a refund, the return must be filed within 3 years of the original due date of the return. However, no refund will be made to an employer of tax deducted and withheld from the wages of employees.  If you file an amended federal Form 941 or 945 or if your return is changed or corrected by the IRS, you must amend Form CT-941X within 90 days.  

You can file Form CT-941X on the TSC-BUS by logging into your account.

FORM CT-W3 (wages), Form CT-1096 (for nonpayroll amounts)- If an error was made on a previously filed Form CT-945, use Form CT-941X to amend Form CT-945. If an error was made on a previously filed Form CT-W3 or Form CT-1096, write “Amended” at the top of a blank Form CT-W3 or Form CT-1096, as the case may be, for the appropriate year, enter the correct information.
 

Related withholding publications
  1. AN 2012(1) - Information for Married Individuals or Civil-Union Partners Who Are Both Employed and File a Joint Connecticut Income Tax Return
  2. IP 2013(1) - Connecticut Circular CT Employer's Tax Guide
  3. SN 2004(9) - 2004 Legislation Affecting Connecticut Income Tax Withholding by Employers on Wages Paid on or After January 1, 2005 (FOR WAGE HOLDERS)
  4. IP 2012(8) Connecticut Tax Guide for Payers of Nonpayroll Amounts (for NONPAYROLL)
  5. SN 2004(10) - 2004 Legislation Affecting Connecticut Income Tax Withholding by Payers From Nonpayroll Amounts Paid on or After January 1, 2005
  6. 1099-MISC Reporting Requirements
  7. IP 2012(22) - Forms 1099-R, 1099-MISC and W-2G Electronic Filing Requirements for Tax Year 2011
  8. IP 2012(25) - 2012 Federal/State Electronic Filing Handbook
  9. IP 2012(23) - Form W-2 Electronic Filing Requirements