RePost from August: Additional Information Regarding Calculating Connecticut Taxes

We have received numerous questions about the new Connecticut Payroll Tax Table Update. Please see the information below to help you with any questions that you may have.

Due to the significant changes in the Connecticut tax law you must pay special attention to employees' wages throughout the balance of the tax year. The following are some special circumstances where the Sage ERP MAS 90 and 200 Payroll program calculations cannot fully accommodate these tax law changes and manual calculations may be required. For example:

• If you have recently hired employees, prior to August 1, 2011, you will have to determine whether to continue to use their existing filing status or change to the new filing status. Either way, for this small group of employees, they will be under or over withheld. You may want to calculate their taxes manually to determine which filing status will calculate the most accurate withholding amount for the rest of the year.

• For employees with varying paid hours (20 hrs week 1, 30 hrs week 2 etc) you would need to manually calculate their taxes using the wage bracket tables and enter as manual taxes in Payroll Data Entry for each check.

• In order for employees who have elected to have an additional state tax amount withheld from their check, manual tax calculation will be required because the new recapture taxcalculations for Connecticut will keep adjusting the YTD state tax based on the new tables.

• For employees with standard paid hours (40 hours weekly) who have elected to have an additional state tax amount withheld from their check, you would manually calculate their taxes and add the additional amount, then store the amount as an override Amount in Employee Maintenance. Or, you may elect to no longer make the additional calculation available to your employees.

• For employees with varying paid hours (20 hrs week 1, 30 hrs week 2, etc) who have elected to have additional state tax amount withheld you would need to manually calculate their taxes using the wage bracket tables, add the additional amount and enter the sum as manual taxes in Payroll Data entry for each check. Or, you may elect to no longer make the additional calculation available to your employees.

• For employees who receive a raise in pay after August 1, 2011, it may be necessary to re-assign their Filing Status when processing their change if the salary adjustment moves them into another bracket.


If you have any additional questions, please contact either the State of Connecticut, or your accountant.