Withholding Tax Frequently Asked Questions
- Am I an employer?
- Will DRS mail a quarterly reconciliation to every employer?
- Does DRS publish any information to assist employees to calculate the amount to have withheld from their paychecks?
- What is the difference between gross Connecticut wages and gross wages?
- Who is required to file information returns electronically with DRS?
- Will failure to electronically file information returns result in the assessment of penalties?
- Where can I get information on electronic filing of Form W-2 with DRS?
- How do I request a waiver from filing information returns electronically?
- How do I request an extension of time to file information returns?
- Are any paper forms required if I file electronically?
- How do I report changes on a previously-filed electronic submission?
- How can I submit data when there is a requirement for the data to be protected?
You are a Connecticut employer only if you have employees to whom you pay Connecticut wages whether or not you are required to withhold Connecticut income tax. If you do not have employees to whom you pay Connecticut wages, you are not required to be registered with DRS to withhold Connecticut income tax.
No. You must remit all income tax withholding payments and submit all withholding forms electronically.
Yes. Informational Publication 2022(7), Is My Connecticut Withholding Correct?, is designed to help individuals determine if they are having enough tax withheld.
Gross wages means the sum of wages paid to all your employees regardless of where they work. The amount of gross wages you report on Form CT‑941 for a calendar quarter must correspond with the amount reported on federal Form 941 for that quarter. Gross Connecticut wages means the sum of:
- All wages paid to resident employees. Connecticut wages paid to resident employees are wages paid to resident employees regardless of where their services are performed. The amount of Connecticut wages paid to a resident employee will generally equal the amount of the employee’s wages for federal income tax withholding purposes; and
- All Connecticut wages paid to nonresident employees. Connecticut wages paid to nonresident employees are wages paid to nonresident employees for services performed in Connecticut.
All employers must electronically file Forms W‑2 reporting Connecticut wages, even if no Connecticut tax is withheld.
Yes. Unless DRS has granted a waiver, employers required to electronically file are treated as having failed to file if they file paper forms instead of filing electronically. A penalty of $5 is imposed for each information return that an employer fails to file with DRS by January 31. The maximum penalty imposed is $2,000 for any calendar year.
Employers should refer to Informational Publication 2021(16), Form W‑2 Electronic Filing Requirements for Tax Year 2021.
To request a waiver complete and mail Form CT‑8508, Request for Waiver From Filing Information Returns Electronically, to DRS at least 30 days before the due date. Form CT‑8508 cannot be filed electronically. DRS will notify you only if your request for waiver is denied.
If a waiver is granted your information returns must be submitted to DRS on Compact Disc (CD). See Form CT‑6559, Submitter Report for Form W‑2 Compact Disc (CD) Filing, and, if applicable, Form CT‑6559A, Submitter Report for Form W‑2 Compact Disc (CD) Filing Continuation Sheet.
To request an extension, you must complete and submit Form CT‑8809, Request for Extension of Time to File Information Returns, on or before January 31. DRS will notify you only if your extension request is denied. Form CT‑8809 cannot be filed electronically.
No. You do not submit paper copies of any electronically-filed forms.
Amended filings are made electronically through myconneCT by using the Standard login, or the Third Party Bulk Filer (TPBF) login. See IP 2021(16).
Electronic filing of information returns through myconneCT is a free, fast, easy, and secure way to conduct business with DRS. The connection created during your session with myconneCT encrypts all information sent by you until the information is delivered to DRS, thus keeping data secure during transport.