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. Withholding Tax Forms

How to File Withholding Tax
  1. On-Line using TSC
  2. Over the telephone using our Business Telefile System
  3. Federal/State Employment Taxes (FSET) Program
Click here for an Informational Withholding Filing Update

What Forms Do I File and When Are They Due?
 
Employers and Payers are required to file all withholding forms and remit all withholding payments electronically.
 

Employers

 

 

Weekly, Monthly, and Quarterly Remitter Due Dates

Form

Weekly Remitter

Monthly Remitter

Quarterly Remitter

Form CT-WH.

Must be paid Electronically

If the payday falls on a Saturday, Sunday, Monday, or Tuesday, the due date is the second Wednesday following the payday. (**See Weekly Remitter Payday falls on a Saturday, Sunday, Monday, or Tuesday, below.)

If the payday falls on a Wednesday, Thursday, or Friday, the due date is the Wednesday following the payday. (***See Weekly Remitter Payday falls on a Wednesday, Thursday, or Friday, below)

The fifteenth day of the following month. Example: For Paydays occurring in February, the due date is March 15.

Last day of the month following the calendar quarter.  Same due date as Form CT-941.

1st (Jan.- Mar.) is due April 30.

2nd (Apr.-Jun.) is due July 31

3rd (Jul.-Aug.) is due September 30

4th (Sept.- Dec.) is due January 31

 

Weekly Remitter**If the payday falls on a Saturday, Sunday, Monday, or Tuesday, the due date is the second Wednesday following the payday. 

Example: Payday falls on Monday the 8 the due date is Wednesday the 17.

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Weekly Remitter*** If the payday falls on a Wednesday, Thursday, or Friday, the due date is the Wednesday following the payday.
Example: Payday falls on Thursday the 4 the due date is Wednesday the 10.

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Quarterly and Annual Reconciliation Forms

Form Purpose

Employers

Household Employers

Seasonal*

Agricultural*

Weekly and Monthly

Quarterly

To make your withholding tax payments: All payments must be made electronically

Form CT-WH, Connecticut Withholding Tax Payment Form

Form CT-WH or Form CT-941, Connecticut Quarterly Reconciliation of Withholding

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

Form CT-WH or Form CT-941

Form CT-WH or Form CT-941, Connecticut Quarterly Reconciliation of Withholding

To file your quarterly reconciliations: Must be filed Electronically

Form CT-941

Form CT-941

N/A

Form CT-941

Form CT-941

To file annual reconciliation with Forms   W-2: Must be filed Electronically

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.

 

 

Employer Quarterly and Annual Reconciliation Due Dates

Form

Quarterly filers

 

 

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

Submit to DRS Form CT-W3 along with federal Forms W-2 by January 31.

 

 

Household Employers Due Dates 

Form

Annual Remitter and Filer

Form CT-941 HHE

April 15

Form CT -W3 HHE

Submit to DRS Form CT-W3HHE with federal Forms W-2 by January 31.


Seasonal* Due Dates
 

Form

Quarters as approved by DRS

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

Submit to DRS Form CT-W3 along with federal Forms W-2 by January 31.


Agricultural* Due Dates
 

Form

Annual Filer

Form CT-941

January 31

Form CT-W3

Submit to DRS Form CT-W3 along with federal Forms W-2 by January 31.

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


 


 

Nonpayroll Payers

 

Weekly, Monthly, and Quarterly Remitter Due Dates

Form

Weekly Remitter

Monthly Remitter

Quarterly Remitter

Form CT-8109.  Must be paid Electronically

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

Nonpayroll amounts paid on a Wednesday, Thursday, or Friday, are due the Wednesday following the payment. (***See Weekly Remitter Nonpayroll paid on a Wednesday, Thursday, or Friday, below)

The fifteenth day of the following month.  Example: For nonpayroll amounts paid in February, the due date is March 15.

Last day of the month following the calendar quarter.

1st (Jan.- Mar.) is due April 30.

2nd (Apr.-Jun.) is due July 31

3rd (Jul.-Aug.) is due September 30

4th (Sept.- Dec.) is due January 31

 

 

Weekly Remitter**Nonpayroll paid on a Saturday, Sunday, Monday, or Tuesday, is due the second Wednesday following the payment. 

Example: Nonpayroll paid on Monday the 8 is due Wednesday the 17.

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Weekly Remitter***Nonpayroll paid on a Wednesday, Thursday, or Friday, is due the Wednesday following the payment.
Example: Nonpayroll paid on Thursday the 4 is due Wednesday the 10.

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Nonpayroll Annual Reconciliation Forms and Due Dates

Form Purpose

Nonpayroll Payers

Athlete and Entertainer Payers

To file your annual reconciliation:  Must file electronically.

Form CT-945, Connecticut Annual Reconciliation of Withholding for Nonpayroll Amounts. Due January 31.

Form CT-945 ATHEN, Connecticut Annual Reconciliation of Withholding for Nonpayroll Amounts. Due January 31

To submit 1099MISC, 1099R or W-2G: Must file electronically. (Click here for Information Return Filing Update)

Form CT-1096, Connecticut Annual Summary and Transmittal of Information Returns. Due:  Electronic: Last day of March.  (Paper: Last day of February. Click here for Information Return Filing Update)

Form CT-1096 ATHEN, Connecticut Annual Summary and Transmittal of Information Returns. Due:  Electronic: Last day of March.  (Paper: Last day of February. Click here for Information Return Filing Update)

 

 

 

Athletes and Entertainers Due Dates

Form

Weekly Remitter

Monthly Remitter

Quarterly Remitter

Form CT-8109.  All payments must be made electronically.

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, above.)

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, above)

The fifteenth day of the following month. Example: For nonpayroll amounts paid in February, the due date is March 15.

Last day of the month following the calendar quarter.

1st (Jan.- Mar.) is due April 30.

2nd (Apr.-Jun.) is due July 31

3rd (Jul.-Aug.) is due September 30

4th (Sept.- Dec.) is due January 31

Form CT-945 ATHEN. Must file electronically.

January 31

Form CT-1096 ATHEN. Must file electronically (Click here for Information Return Filing Update)

Electronic: Last day of March. (Paper: Last day of February.  (Click here for Information Return Filing Update)


 


Withholding Tax Penalty and Interest 

 

Late Payment Penalty

The penalty for late payment or underpayment of tax due is 10% of the amount due on all returns.

 

Late Electronic Payment Penalty

 

The following penalties will apply if an electronic funds transfer payment (EFT) is remitted late:

  • 2% of the tax due for EFT payments not more than 5 days late;
  • 5% of EFT payments more than 5 days but not more than 15 days late; and
  • 10% of EFT payments more than 15 days late.

To be considered timely, an EFT payment must be initiated on or before the due date of such payment. Any payment not considered timely will be subject to interest and late payment penalty.

 

Penalty for Failure to Pay Electronically

 

The following graduated penalty amounts will apply if you fail to remit payments electronically:

  • First offense 10% penalty on the amount of the required tax payment, but not more than $2,500;
  • Second offense 10% penalty, but not more than $10,000; And
  • Third and subsequent offenses 10% penalty.

Late Filing Penalty

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.

 

Required Information Returns

A penalty of $5 per statement (up to a total of $2,000 per calendar year) is imposed for failure to provide federal Form W-2 to each employee and a copy to DRS, unless such failure is due to reasonable cause. 


Common Filing Errors to Avoid
  1. Not filing and paying electronically.  Employers and payers are required to file all withholding forms and remit withholding payments electronically.
  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: All withholding forms, including amended forms, must be electronically filed and paid.  Amend Forms CT-941 or CT-945 using the TSC-BUS by logging into your account.  You must amend Form CT-941 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.  

FORM CT-W3, Form CT-1096: Amend or supplement information returns through the TSC.  Amended and supplemental filings can only be done using the Single Employer login or as a bulk filer using the Single Client - Key and Send option.


Related withholding publications
  1. AN 2015(6) - Information for Married Individuals Who Are Both Employed and File a Joint Connecticut Income Tax Return
  2. IP 2016(1) - Connecticut Circular CT Employer's Tax Guide
  3. IP 2015(8.1)  Connecticut Tax Guide for Payers of Nonpayroll Amounts (for NONPAYROLL)
  4. IP 2015(10) - Forms 1099-R, 1099-MISC and W-2G Electronic Filing Requirements for Tax Year 2015
  5. IP 2015(9) - Form W-2 Electronic Filing Requirements
  6. IP 2014(20) - Federal/State Electronic Filing Handbook