Form CT‑W4: Employee’s Withholding Certificate

Form CT‑W4: Employee’s Withholding Certificate - Key Takeaways

• Form CT-W4 is used by Connecticut employees to determine state income tax withholding amounts based on personal and financial information.
• Employers must collect the form from employees, withhold taxes at the highest rate if the form is not submitted, and report certain information to the state.
• Employees should update Form CT-W4 following changes such as marriage, divorce, or income adjustments to ensure proper withholding.

Form CT‑W4 is a vital document ensuring proper Connecticut state income tax withholding from employee wages.

It helps align withholding with individual tax liabilities, benefiting both employees and employers.

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1. What Is Form CT-W4 and Why It Matters

Form CT-W4, the Employee’s Withholding Certificate, is specifically designed for Connecticut employees to declare to their employer the amount of state income tax to withhold from their paychecks.

This form includes information such as the employee’s filing status and personal exemptions, which directly influence withholding calculations.

Completing this form accurately ensures employees do not face surprises at tax time, such as owing additional taxes or receiving smaller refunds due to incorrect withholding.

2. Completion and Submission of Form CT-W4

New Employees

Individuals starting a new job in Connecticut must complete and submit Form CT-W4 to their employer promptly.

This step allows the employer to withhold the correct Connecticut income tax from the employee’s wages from the outset of employment.

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Existing Employees

Existing employees should update their Form CT-W4 whenever significant personal or financial changes occur.

Examples include life events such as marriage, divorce, or a considerable change in income, all of which could affect state tax obligations.

Regular reviews help maintain accurate withholding and prevent over- or underpayment of taxes.

3. Employer Responsibilities Regarding Form CT-W4

Collection and Retention

Employers are responsible for collecting a completed Form CT-W4 from every employee and maintaining it within their records.

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Handling Non-Submission

If an employee fails to provide a completed Form CT-W4, the employer is required to withhold state income tax at the highest effective tax rate applicable.

Handling Exemption Claims

Employees claiming exemption from Connecticut income tax withholding must submit a new Form CT-W4 annually by February 15.

If the employee does not provide the form by this date, employers must begin withholding at the highest effective rate starting February 16.

4. Reporting Requirements for Employers Related to Form CT-W4

High-Income Exemption Claims

Employers must forward copies of Form CT-W4 to the Connecticut Department of Revenue Services (DRS) for employees claiming exemption from withholding under certain conditions.

These conditions include:

• The employee is still employed on the last day of the quarter.
• The employer reasonably expects the employee’s annual wages to exceed specified thresholds:

• $36,000 for unmarried individuals or married individuals filing separately.
• $57,000 for head of household filers.
• $72,000 for those filing jointly.

New Hire Reporting

Employers must send copies of Form CT-W4 for all new hires to the Connecticut Department of Labor within 20 days from the hire date.

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5. Additional Considerations for Employees and Employers

Accuracy of Information

Employees need to ensure that all data they provide on Form CT-W4 is accurate and up to date to prevent withholding discrepancies.

Incorrect withholding can result in unexpected tax liabilities or delays in refunds.

Reviewing and Updating

Periodic reviews of Form CT-W4 are encouraged, especially after life-changing events that affect tax status.

Keeping the form current helps balance tax withholding with actual tax liability.

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6. Resources for Form CT-W4 and Connecticut Tax Withholding

For employees and employers looking for forms, instructions, and detailed guidance on Connecticut withholding requirements, the following official resources are invaluable:

• Connecticut Department of Revenue Services - Withholding Forms
• Connecticut Department of Revenue Services - Circular CT Employer's Tax Guide
• Connecticut Department of Labor - New Hire Reporting

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Form CT‑W4: Employee’s Withholding Certificate - Conclusion

Form CT-W4 plays a crucial role in ensuring that Connecticut state income taxes are withheld accurately from employee wages.

Both employees and employers must fulfill their responsibilities related to timely completion, submission, and handling of this form to maintain compliance with state tax laws.

Regular updates and proper reporting protect employees from unexpected tax issues and support Connecticut’s revenue and enforcement efforts.