Managing Withholding Tax
Withholding is the money an employer withholds from each employee's wages to help prepay the state income tax of the employee. An employer must withhold Connecticut tax if the employee is a resident of Connecticut, performing services in the state. Wages of a nonresident are subject to Connecticut income tax withholding if the wages are paid for services performed in Connecticut. The employer remits the withholding to the state and will issue the employee a W-2 statement indicating the amount of state income tax withheld for the employee.
- How to file Withholding Tax
- What Forms do I File and When Are They Due?
- Withholding Tax Penalty and Interest
- Withholding Tax payment options
- Common Filing Errors to Avoid
- Filing Amended withholding returns
- Related Withholding Publications
- General Withholding information
- Withholding information for Athletes & Entertainers
- Withholding information for Nonresidents Who Work in Connecticut
- Withholding information for Connecticut Residents Who Work in Another State
- Withholding Tax Forms
- Closing a Withholding Account
- Online using the TSC
- Over the telephone using the Business Telefile System
- W-2 and 1099 Electronic Filing Specifications
- Federal/State Employment Taxes (FSET) Program
What Forms Do I File and When Are They Due?
Form | Weekly Remitter | Monthly Remitter | Quarterly Remitter |
Form CT-WH. Must be paid Electronically. |
If the payday falls on a Saturday, Sunday, Monday, or Tuesday, the due date is the second Wednesday following the payday. (See Weekly Remitter Payday falls on a Saturday, Sunday, Monday, or Tuesday, below.) If the payday falls on a Wednesday, Thursday, or Friday, the due date is the Wednesday following the payday. (See Weekly Remitter Payday falls on a Wednesday, Thursday, or Friday, below). |
The fifteenth day of the following month. Example: For Paydays occurring in February, the due date is March 15. |
Last day of the month following the calendar quarter. Same due date as Form CT-941.
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Weekly Remitter: If the payday falls on a Saturday, Sunday, Monday, or Tuesday, the due date is the second Wednesday following the payday.
Example: If payday falls on Monday the 8th the due date is Wednesday the 17th.
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Weekly Remitter: If the payday falls on a Wednesday, Thursday, or Friday, the due date is the Wednesday following the payday.
Example: If payday falls on Thursday the 4th the due date is Wednesday the 10th.
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Quarterly and Annual Reconciliation Forms
Form Purpose |
Employers |
Household Employers |
Seasonal* |
Agricultural* |
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Weekly and Monthly |
Quarterly |
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To make your withholding tax payments: All payments must be made electronically |
Form CT-WH,Connecticut Withholding Tax Payment Form |
Form CT-WH or |
Form CT-941 HHE, Connecticut Reconciliation of Withholding for Household Employers |
Form CT-WH or Form CT-941 |
Form CT-WH or Form CT-941,Connecticut Quarterly Reconciliation of Withholding |
To file yourquarterlyreconciliations: Must be filed Electronically |
Form CT-941 |
Form CT-941 |
N/A |
Form CT-941 |
Form CT-941 |
To file annual reconciliation with Forms W-2: Must be filed Electronically |
Form CT-W3,Connecticut Annual Reconciliation of Withholding |
Form CT-W3,Connecticut Annual Reconciliation of Withholding |
Form CT-W3 HHE, |
Form CT-W3,Connecticut Annual Reconciliation of Withholding |
Form CT-W3,Connecticut Annual Reconciliation of Withholding |
* You must request and receive permission from DRS to file as a seasonal or agricultural filer.
Employer Quarterly and Annual Reconciliation Due Dates
Form |
Quarterly filers |
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Form CT-941 |
Last day of the month following the quarter. Example: First quarter is January 1 through March 31 - the due date is April 30. |
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Form CT-W3 |
Submit to DRS Form CT-W3 along with federal Forms W-2 by January 31. |
Household Employers Due Dates
Form |
Annual Remitter and Filer |
Form CT-941HHE |
April 15 |
Form CT -W3HHE |
Submit to DRS Form CT-W3HHE with federal Forms W-2 by January 31. |
Form |
Quarters as approved by DRS |
Form CT-941 |
For each active quarter – Last day of the month following the quarter. Example: First quarter is January 1 through March 31 - the due date is April 30. |
Form CT-W3 |
Submit to DRS Form CT-W3 along with federal Forms W-2 by January 31. |
Form |
Annual Filer |
Form CT-941 |
January 31 |
Form CT-W3 |
Submit to DRS Form CT-W3 along with federal Forms W-2 by January 31. |
*You must request permission from DRS to file as a seasonal or agricultural filer.
Nonpayroll Payers
Weekly, Monthly, and Quarterly Remitter Due Dates
Form |
Weekly Remitter |
Monthly Remitter |
Quarterly Remitter |
Form CT-8109. |
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 |
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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Form Purpose |
Nonpayroll Payers |
Athlete and Entertainer Payers |
To file your annual reconciliation: |
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 |
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. |
Athletes and Entertainers Due Dates
Form |
Weekly Remitter |
Monthly Remitter |
Quarterly Remitter |
Form CT-8109. All payments must be made electronically. |
Nonpayroll amounts paid on a Saturday, Sunday, Monday, or Tuesday, the due date is the second Wednesday following the payment. (See Weekly Amounts Paid on a Saturday, Sunday, Monday, or Tuesday, above.) If nonpayroll amounts are paid on a Wednesday, Thursday, or Friday, due date is the Wednesday following the payment. (See Weekly Amounts Paid on a Wednesday, Thursday, or Friday, above) |
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 |
Form CT-945 ATHEN. Must file electronically. |
January 31 |
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Form CT-1096 ATHEN. Must file electronically |
January 31 |
Withholding Tax Penalty and Interest
Late Payment Penalty
The penalty for late payment or underpayment of tax due is 10% of the amount due on all returns.
Penalty for Failure to Pay Electronically
The following graduated penalty amounts will apply if you fail to remit payments electronically:
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First offense – 10% penalty on the amount of the required tax payment, but not more than $2,500;
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Second offense – 10% penalty, but not more than $10,000;
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Third and subsequent offenses – 10% penalty.
Late Filing Penalty
In the event no tax is due, the Commissioner of Revenue Services may impose a $50 penalty for failure to file any return or report that is required by law to be filed.
Interest
If you are filing a late or amended return, interest is computed on the underpayment at the rate of 1% per month or fraction of a month from the due date until the date of payment.
Required Information Returns
A penalty of $5 per statement (up to a total of $2,000 per calendar year) is imposed for failure to provide federal Form W-2 to each employee and a copy to DRS, unless such failure is due to reasonable cause.
Common Filing Errors to Avoid
- Not filing and paying electronically. Employers and payers are required to file all withholding forms and remit withholding payments electronically.
- Not filing a return. Do not skip filing a return because you have no withholding to report. You MUST file a ZERO return.
- Registering for withholding prior to hiring employees. Do not register for withholding because you anticipate hiring employees in the future. You will be required to begin filing returns once you are registered, so do not register for withholding until you are absolutely certain you are ready to hire employees.
Filing amended withholding returns
FORMS CT-941, CT-945: All withholding forms, including amended forms, must be electronically filed and paid. Amend Forms CT-941 or CT-945 using the TSC-BUS by logging into your account. You must amend Form CT-941 for each quarter that was filed in error. To claim a refund, the return must be filed within 3 years of the original due date of the return. However, no refund will be made to an employer of tax deducted and withheld from the wages of employees. If you file an amended federal Form 941 or 945 or if your return is changed or corrected by the IRS, you must file Form CT-941X within 90 days.
FORMS CT-W3, CT-1096: Amend or supplement information returns through the TSC. Amended and supplemental filings can only be done using the Single Employer login or as a bulk filer using the Single Client - Key and Send option.
Related withholding publications
- AN 2017(7) - Information for Married Individuals Who Are Both Employed and File a Joint Connecticut Income Tax Return
- IP 2019(1) - Connecticut Circular CT Employer's Tax Guide
- IP 2018(8) - Connecticut Tax Guide for Payers of Nonpayroll Amounts
- IP 2018(12.1) - Forms 1099-R, 1099-MISC, 1099-K, and W-2G Electronic Filing Requirements for Tax Year 2017
- IP 2018(13) - Form W-2 Electronic Filing Requirements
- IP 2018(14) - Federal/State Electronic Filing Handbook