Effective January 1, 2012, the Connecticut state tax withholding calculation has been updated. See Publication TGP-211, Withholding Calculation Rules and Publication ip2011-10.
For more information visit http://www.ct.gov/drs/site/default.asp
Be sure and have a backup of your division and the use of a test division prior to your first payroll day is suggested.
- You must update from toolbox data item .SWT CT after all 2011 payrolls have been completed.
- You must do a C to Change, 0 to Accept on your Payroll Parameter in Payroll, Setup, Payroll Parameter to update the Employee Data Items.
The 2012 calc is easier than 2011 since we are starting fresh at the beginning of the year and not implementing in the middle of the year. This means we no longer have to prorate the tax amount based on the # of p/r periods in the year, the periods remaining in the year and the tax amount already paid in the year. The calc no longer has to go thru this process and instead just does the usual annualize and then de-annualize of the tax amount.
Because of this change, employee data items no longer used are:
.SWT CT PR – # of p/r periods remaining in year
.SWT CT PY – total # of p/r periods in year
The employee data item that is still in use is:
.SWT CT RC Additional Recapture amount.
Employee Pay Calculation – Additional Recapture Amount
From the Employee Pay Calculation tab, you can add the Additional Recapture amount. This is an optional withholding amount for high-income taxpayers. The amount per pay period is based on Publication TGP-211 page 4, table E.