Nonpayroll Withholding Tax Information
- What’s New for 2021
- Who Must Complete a Registration Application and File a Withholding Tax Return
- Filing Due Dates
- Electronically filing Form W-2,(Wage) and Non-Wage Forms 1099-R, 1099-MISC, 1099-NEC, and W-2G
- Electronic Payment Options
Who Must Complete a Registration Application and File a Withholding Tax Return
If you are a new payer required to deduct and withhold Connecticut income tax from nonpayroll amounts you must register with the Department of Revenue Services (DRS). Visit myconneCT to register your business for income tax withholding.
Click here to File, Pay, or Register Now on myconneCT!
Go to myconneCT, under Business Registration click New Business/Need a CT Registration Number? There is no fee for registering for Withholding Tax.
myconneCT is the new DRS online portal to file tax returns, make payments, view your filing history, and communicate with the agency simply and more efficiently on virtually any mobile device, including laptops, tablets, and smartphones, 24 hours a day, 7 days a week.
In general, Connecticut law follows federal law in determining what income is subject to withholding. Certain nonpayroll income (also referred to as nonpayroll amounts) is subject to withholding.
Anyone who maintains an office or transacts business in Connecticut must withhold Connecticut income tax whether or not the payroll or accounts receivable department is located in Connecticut.
If you are a payer of nonpayroll amounts not already registered with DRS, including if you are starting a new business, you must register to withhold Connecticut income tax.
If you are a payer of nonpayroll amounts already registered with DRS for other state taxes, you are still required to register to withhold Connecticut income tax.
If you are a payer of nonpayroll amounts who acquires an existing business you must register with DRS to obtain a Connecticut Tax Registration Number.
The DRS Tax Registration Number and Federal Employer Identification Number must appear on all Connecticut withholding forms and on all correspondence with DRS. Do not use the registration number issued by the Department of Labor (DOL) on DRS forms.
You are required to withhold Connecticut income tax from nonpayroll amounts at the time those amounts are paid and you are required to remit the Connecticut income tax withholding to DRS according to your remitter classification. See the requirements in Weekly Remitter, Monthly Remitter, or Quarterly Remitter.
Weekly, Monthly, and Quarterly Remitter Due Dates
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Weekly Remitter |
Monthly Remitter |
Quarterly Remitter |
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Form CT-8109. Must be paid Electronically |
Nonpayroll amounts paid on a Saturday, Sunday, Monday, or Tuesday, are due the second Wednesday following the payment. (See Weekly Remitter Nonpayroll paid on a Saturday, Sunday, Monday, or Tuesday, below.) Nonpayroll amounts paid on a Wednesday, Thursday, or Friday, are due the Wednesday following the payment. (See Weekly Remitter Nonpayroll paid on a Wednesday, Thursday, or Friday, below) |
The fifteenth day of the following month. Example: For nonpayroll amounts paid in February, the due date is March 15. |
Last day of the month following the calendar quarter. 1st(Jan.- Mar.) is due April 30. 2nd(Apr.-Jun.) is due July 31 3rd(Jul.-Sept.) is due October 31 4th(Oct.- Dec.) is due January 31 |
Weekly Remitter: Withholding for nonpayroll amounts paid on a Saturday, Sunday, Monday, or Tuesday, is due the second Wednesday following the payment.
Example: Withholding for nonpayroll amounts paid on Monday the 8th is due Wednesday the 17th.
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Weekly Remitter: Withholding for nonpayroll amounts paid on a Wednesday, Thursday, or Friday, is due the Wednesday following the payment.
Example: Withholding for nonpayroll amounts paid on Thursday the 4th is due Wednesday the 10th.
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Nonpayroll Annual Reconciliation Forms and Due Dates
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Form Purpose |
Nonpayroll Payers |
Athlete and Entertainer Payers |
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To file your annual reconciliation: Must file electronically. |
Form CT-945,Connecticut Annual Reconciliation of Withholding for Nonpayroll Amounts. Due January 31. |
Form CT-945 ATHEN, Connecticut Annual Reconciliation of Withholding for Nonpayroll Amounts. Due January 31. |
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To submit 1099MISC, 1099R or W-2G: Must file electronically. |
Form CT-1096,Connecticut Annual Summary and Transmittal of Information Returns. Due: January 31. |
Form CT-1096 ATHEN, Connecticut Annual Summary and Transmittal of Information Returns. Due: January 31. |
All Withholding Tax payments must be made electronically. Non-electronic payments made without an electronic payment waiver will be subject to penalty. See Informational Publication 2021(5), Filing and Paying Connecticut Taxes Electronically.
There are multiple options to pay electronically:
myconneCT
Click here to File, Pay, or Register Now on myconneCT!
Visit myconneCT to make an electronic payment. After logging in to myconneCT, find your tax account on the Summary screen, select the Make a Payment link and choose your payment method.
- Pay by Direct Payment: Using this option authorizes DRS to electronically withdraw a payment from your bank account (checking or savings) on a date you select up to the due date.
- Pay by Credit Card or Debit Card: You may elect to pay your tax liability using a credit card (American Express®, Discover®, Master Card®, Visa®) or comparable debit card. A convenience fee will be charged by the credit card service provider. The convenience fee is generally 2.35% of the payment amount, with a minimum charge of $3.95. You will be informed of the amount of the fee and may elect to cancel the transaction. Your payment will be effective on the date that you make the charge.
At the end of the transaction, you will receive a confirmation number for your records. As a reminder, even if you pay electronically, you must still file your return by the due date. Tax not paid on or before the due date will be subject to penalty and interest.
Fed/State Employment Taxes Program (FSET)
DRS participates in the FSET program through which you can initiate federal taxes, Connecticut withholding and unemployment compensation payments and file multiple government returns through the same portal.
The FSET program is used by software developers, transmitters, and payroll service providers. It enables businesses to file payroll tax returns and make payments.
Transmission using the FSET system may be made by an individual employer or a third party, using the required XML format.
If your company is interested in using the FSET system for the quarterly filing of state and federal tax and wage reports and making employment tax payments ask your payroll company to contact DRS to get more information or contact an Approved FSET Vendor.
ACH Credit
ACH credit method users should consult with their banking institution for guidelines to ensure that payment is received timely. (Taxpayers must pre‑register with the DRS Electronic Commerce Unit (ECU) prior to using this option). The taxpayer initiates an electronic payment through their banking institution. This payment must be sent in the ACH standard CCD+TXP format. For detailed information and a list of FAQ’s, review Informational Publication 2021(5), Filing and Paying Connecticut Taxes Electronically.