22 August 2019 Connecticut Department of Revenue Services conducting employer survey in connection with payroll tax proposal The Connecticut Department of Revenue Services (DRS) has announced that it is asking certain Connecticut employers to respond to an information request that will assist the Connecticut Payroll Tax Commission in evaluating the potential impact of instituting a new state payroll tax. The information request was sent in two emails from the DRS, one that explains the survey and the second with four survey questions. Employers are asked to complete the survey by October 1, 2019. As previously reported, the Connecticut legislature is now considering a new payroll compensation expense tax paid by employers (payroll tax). Employees would be able to take a credit on their Connecticut personal income tax returns for a substantial portion of this employer-paid payroll tax. The proposal is similar to the New York employer compensation expense tax implemented last year to assist New York's taxpayers in dealing with the adverse consequences of the Tax Cuts and Jobs and Act. Under proposed SB 1143, a payroll tax would apply when an employee's Social Security wages exceed $40,000 per year with the tax rates ranging from 1.5% to 5% over three years. Connecticut's Finance Committee held a public hearing concerning the proposal on Monday, April 29, 2019. To determine the impact of the proposed payroll tax, Public Act 19-117, Section 385 was later enacted to create a Connecticut Payroll Tax Commission to study the topic. In furtherance of its mission, the Commission required the DRS to gather certain data. Accordingly, the DRS is asking that certain employers respond to a brief survey with four questions about their business entity.
Document ID: 2019-1509 | |||||||||
