Connecticut State Payroll Tax Changes Are Taking Effect August 1st

Connecticut has made some significant changes to payroll withholding tax calculations, effective August 1, 2011. In order for the Sage ERP MAS 90 and 200 Payroll module to fully support these complex changes, several areas of the product have changed, including:

•The Connecticut Tax Table
•Program changes to the calculation engine
•New employee filing status for all existing CT employees will be added

Due to this complexity, program changes for the Connecticut withholding tax will be completed for Sage ERP MAS 90 and 200 versions 4.20, 4.30, and 4.40 and will be included in the initial release for version 4.50. Connecticut companies running Payroll on Sage ERP MAS 90 and 200 versions below 4.20 must upgrade to one of the supported versions in order to comply with this new state-legislated change.

What You Need to Do?

These changes will be included in a program change that will be made available to you in late July. In order to accurately calculate CT payroll taxes the program change for CT employers should be applied to your Sage ERP system after the last payroll run in July and before the first payroll in August. Also, prior to the first payroll run in August, Payroll Administrators will need to assign a new employee filing status for any employee that earned CT income in 2011 prior to August 1. Full details on how and when to implement this new change on supported versions of Sage ERP MAS 90 and 200 will be available to you when the program change is released.

Please call Nikki at 860.399.4215 x.202 to schedule time with our CMS product consultants to help you with these new changes or if you need information on upgrading your current Sage ERP system.