As we enter a new year, the Department of Revenue Services (DRS) is urging employers and employees to review their Form CT-W4, Employee’s Withholding Certificate status for income tax withholding. This is especially important for employees who adjusted their Connecticut withholding during 2011 because of changes to the state tax rates.
DRS Commissioner Kevin B. Sullivan said, “Employees should file a new Form CT-W4 at the beginning of every year to ensure their employer has the correct information to calculate their state tax withholding. However, for workers who made changes to their 2011 Connecticut withholding because of issues with under- or over-withholding, they must do so in order to avoid penalties for not having enough tax taken out of their paychecks in 2012.”
Legislative changes in 2011 to the state’s income tax required catch-up withholding to guarantee that Connecticut taxpayers would not face large tax bills when filing annually in 2012. Unfortunately, payroll processing errors and the failure of some employers to begin catch-up withholding on time issues resulted in many taxpayers being significantly over-withheld. DRS advised those impacted by withholding irregularities to seek refunds from employers or submit a provisional withholding certificate to their employers in order to stabilize withholding amounts.
“Other times when you need to file a new CT-W4 with your employer are life-changing events such as a marriage, divorce, new job, or the death of a spouse,” Commissioner Sullivan said. Taxpayers who have questions about Connecticut withholding taxes will find more information in the DRS Informational Publication 2012 (7) Is My Withholding Correct? on the DRS website.
Taxpayers can also call DRS Taxpayer Services at (800) 382-9463 (in Connecticut, but outside the Greater Hartford calling area) or (860) 297-5962 (from anywhere).
