Connecticut's Department of Revenue Services released the 2017 income tax withholding calculation rules and wage-bracket tables to its website.

There is no percentage method available to determine Connecticut withholding.

For more information, contact the Department at +1 860 297 5962 or toll free in Connecticut at +1 800 382 9463 or see the Department's website.

Supplemental withholding

Connecticut does not provide for a supplemental withholding rate.

2016 Form W-2 filing reminders

Employers with 25 or more calendar year 2016 Forms W-2 to file are required to electronically file Connecticut Form CT-W3, Connecticut Annual Reconciliation of Withholding, and the corresponding Forms W-2 by January 31, 2017 through the Department's electronic Taxpayer Service Center (TSC).

Specifications for filing the 2016 Forms W-2 electronically can be found here.

The Department is again suspending the electronic filing mandate for filing Form CT-W3 and corresponding Forms W-2 for those employers who issue 24 or fewer W-2s. As a result, a paper Form CT-W3, and the corresponding paper Forms W-2, can be filed by employers with 24 or fewer employees for tax year 2016. Note, however, that the due date for filing paper tax year 2016 Forms CT-W3 and W-2 is the same as for electronically filed forms — January 31, 2016.

Form 1099 filing reminders

The Department requires every state copy of the following:

Federal Form 1099-MISC for:

a. Payments made to a Connecticut resident even if Connecticut income tax was not withheld; and

b. Payments made to a nonresident of Connecticut if the payments relate to services performed wholly or partly in Connecticut even if Connecticut income tax was not withheld.

Federal Form 1099-R only if Connecticut income tax was withheld.

Federal Form W-2G for winnings paid to a Connecticut resident even if Connecticut income tax was not withheld.

Payers filing 25 or more Forms 1099 are required to electronically file Form CT-1096, Connecticut Annual Summary and Transmittal of Information Returns, and the corresponding Forms 1099 by March 31, 2017. (The suspension from filing Forms 1099 electronically if filing 24 or less forms also continues to apply to calendar year 2016 Forms 1099.)

Payers filing 24 or less 2016 Forms CT-1096 and 1099 may file on paper by February 28, 2017.

Specifications for filing the 2016 Forms 1099 electronically can be found here.

Failure to file electronically may result in penalties unless a waiver is received

Penalties of $5 per form (up to a total of $2,000 per calendar year) may apply to returns not filed electronically. Employers issuing 25 or more 2016 Forms W-2 that are unable to file electronically may request a hardship waiver by completing Form CT-8508, Request for Waiver From Filing Informational Returns Electronically, and submitting the form to the Department before December 31, 2016 (30 days prior to the January 31, 2017 due date

Taxpayers issuing 25 or more 2016 Forms 1099-R, 1099-MISC, or W-2G that are unable to file electronically may request a hardship waiver by completing Form CT-8508 and submitting the form to the Department before January 29, 2017 (30 days prior to the February 28, 2017 due date).

Form CT-8508 cannot be filed electronically. If a waiver is granted, Forms W-2 and 1099 must be submitted to the Department on CD-ROM — paper forms are not allowed unless the employer is filing 24 or fewer forms.

Note that if you are requesting a waiver from the electronic reporting requirement for both Forms W-2 and 1099 on the same Form CT-8508, the request for waiver should be submitted before December 31, 2016, the earlier deadline for Forms W-2.

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