Schulz Consulting

Consulting and Upgrades

  • Home
  • Services
  • Technical
    • Sage 100 New Features ( Brief )
  • Sage 100 Support

CT Payroll Tax Withholding Wrong? Join The Club

December 31, 2011 by Wayne Schulz

The Hartford Courant is reporting that over 700 Connecticut employees contacted the state to ask why their December 2011 tax withholding was incorrect. Apparently this widespread issue is due to the state attempting to apply some retroactive tax adjustments to worker’s pay. The reason so many are experiencing issues in December is automated payroll systems miscalculate income tax owed when workers have either overtime pay, a Christmas bonus or a buyback of unused sick days.

Provided your pay is regular each period the Connecticut withholding tax tables appear to work just fine. When payroll is different weekt to week (as may be the case with vacation or holiday pay or year end bonus) then the CT Withholding tables (provided by the state) may inaccurately withhold too much.

According to the Courant:

Because the increase in state income taxes began in August, but was retroactive to the beginning of the year, state income tax withholding is designed to both take out the right amount for the current pay period and for the first two-thirds of the year. But when employees have higher pay than usual, many payroll systems assume they’ve been earning that amount all year.

Even the state of Connecticut had overwithholding issues, with Department of Transportation workers after Tropical Storm Irene. The state did not make a fix to its software, because the same thing happened again in December, for corrections officers who received holiday pay and overtime.

“Those employees have been refunded where possible,” said Tara Downes, spokeswoman for the state Comptroller.

The good news: no worker, no matter how plumped up his check is with overtime or bonuses, will see this glitch starting Sunday. That’s because the systems will no longer be trying to calculate retroactive withholding.

via: Hartford Courant  and State of CT Withholding Tables for 2012 (PDF)

Filed Under: Sage 100 ERP Tagged With: ct, dan malloy, payroll, rates, retroactive, tables, taxes, withholding

Sage 100 Newsletter

Search Our Site

Sage 100 News

  • How to Fix: Sage 100 Desktop Launcher Closes Immediately After Login (No Error)
  • How To Update Sage Intelligence Keys as Sage Moves Away From Unlimited Licenses
  • Get More From Your Sage 100 Partnership
  • Sage Future 2025 Preliminary Agenda Released
  • Upgrading Sage 100 to 64-bit: Avoid These Integration Pitfalls
  • What’s New in Sage 100 2024? ( Video )
  • Sage 100 Users: Conquer Minnesota’s New Sales Tax & Delivery Fee Headache-Free
  • Elevate Your Sage 100 Expertise with SchulzSays: The Ultimate Newsletter for Users and Consultants
  • How To Purge Cleared Bank Reconciliation Transactions in Sage 100
  • 10 Exciting New Features in Sage 100 2024

Contact Us

Schulz Consulting
Connecticut Office
Click Here To Contact Schulz Consulting
Phone: 860-657-8544
Email Us
Available remotely nationwide.
We are a local branch of DSD Business Systems Connecticut.

Copyright © 2026 · Parallax Pro Theme on Genesis Framework · WordPress · Log in