Connecticut Administrative Code › Title 12 - Taxation › 740(a) - INCOME TAX › Part IX - Withholding › Section 12-705(a)-6 - Determining Connecticut income tax to be withheld on wages paid to nonresident employees

Current through July 10, 2024
(a) Every employer
				maintaining an office or transacting business in Connecticut and making
				payments of wages shall, as provided in this section, deduct and withhold from
				such wages an amount of Connecticut income tax as determined in accordance with
				the current edition of the Connecticut Circular CT (Employer Tax Guide and
				Withholding Tables), except that if the department issues income tax
				withholding tables subsequent to the publication of the current edition of the
				Connecticut Circular CT, then the employer shall use those income tax
				withholding tables to determine how much Connecticut income tax to deduct and
				withhold from wages.
(b) An
				employer maintaining an office or transacting business in Connecticut shall
				deduct and withhold Connecticut income tax from all wages paid to an employee
				who is a nonresident individual if the services of the employee are performed
				entirely within Connecticut. No Connecticut income tax is to be deducted and
				withheld from wages paid to an employee who is a nonresident individual for
				services performed entirely outside Connecticut. Where wages are paid to an
				employee who is a nonresident individual for services performed partly within
				and partly without Connecticut, the employer shall deduct and withhold
				Connecticut income tax from all wages paid to such employee, except as
				otherwise provided in subsection (c) of this section.
(c) An employer is required to withhold
				Connecticut income tax on all wages paid to an employee who is a nonresident
				individual for services performed partly within and partly without Connecticut
				unless there is filed with such employer a Form CT-W4NA (Employee Withholding
				or Exemption Certificate--Nonresident Apportionment) or unless the employer
				maintains adequate current records to determine accurately the amount of wages
				that is paid for the performance of services within Connecticut. The employer
				should withhold Connecticut income tax on the wages paid by such employer to an
				employee who is a nonresident individual performing services partly within and
				partly without Connecticut on the basis of the apportionment shown by such
				employee on the Form CT-W4NA, but shall make necessary adjustments during the
				year so that the proper amount of Connecticut income tax is withheld from the
				employee's wages if the employer knows or has reason to know that the
				apportionment shown on the Form CT-W4NA is not correct. For purposes of making
				these adjustments, the proportion of wages that is paid for the performance of
				services within Connecticut is in the same proportion that such employee's
				wages derived from or connected with sources within Connecticut (determined
				under the provisions of Part II) bear to the employee's total wages. The
				proportion of wages that is paid for the performance of services within
				Connecticut may be determined by the employer on the basis of the preceding
				year's experience, if reasonable, except that the employer shall make any
				necessary adjustments during the year to ensure that the required Connecticut
				income tax is being withheld for the current year if the employer knows or has
				reason to know that the apportionment shown on the Form CT-W4NA is no longer
				correct. If the employee reasonably expects that the preceding year's
				experience shall not be applicable to the current year, the employee shall
				furnish a new Form CT-W4NA to the employer, estimating the proportion of wages
				that shall be paid for the performance of services within this state. Forms
				CT-W4NA shall be retained by the employer and be available for inspection by
				the Department.
(d) To determine
				the amount to be withheld from wages paid to employees who are resident
				individuals, see §
									12-705(a)-2.
Full section history for 2002 amendment reads as follows:
					 "Amended February 28, 2002, applicable to taxable years beginning on or after
					 January 1, 2002." Abbreviated note in section history inserted 11/4/2014 as a
					 result of automated publishing restrictions. (November 4,
					 2014)