Connecticut State Income Tax Calculation Update is Now Available
This alert is to notify you of Sage Employer Solution’s response to recent Connecticut State Income Tax requirements. If you do not process payroll in the state of Connecticut, please disregard this Customer Alert.
Connecticut recently enacted legislation that makes significant changes to the State’s Income tax withholding calculations retroactively to January 1, 2011. These income tax changes are in effect for the entire tax year. Employers are required to adjust the withholding amounts for employees affected by the new rates and additional provisions. Connecticut employers and tax payers need to implement the new tax rates and follow these additional requirements:
- Allow for additional tax provisions to recapture tax from taxpayers over certain income brackets
- Implement a tax rate phase out for the 3% tax rate
- Perform catch-up withholding for the current tax year
To maintain compliance with the new Connecticut legislation effective August 1, 2011, as of July 26, 2011 Sage has a tax update specifically for users mandated to make these changes. The Sage Abra Suite Connecticut tax update contains provisions for the following:
- To calculate the new withholding tax amount
- Allow for the recapture amounts
- Implement the phase out of the 3% tax rate
- Calculate the catch-up amount for each employee affected.
These Updates are now Available for Download:
- Download the update specific to your Abra version from SupportPlus Online.
- Select Quarterly Tax Updates Available Here!
- For Abra Suite v7.88, Select CT Tax Update v7.88.22 from either Site 1 or Site 2, download and save the CT_Tax_Updatev7.88.22.zip file to the appropriate location.
- For Abra Suite v9.07, Select CT Tax Update v9.07.32.01 from either Site 1 or Site 2, download and save the SageAbraSuite09_073201.zip file to the appropriate location.
- There is a new Crystal Report installed with the update in the …DataCustomReportsPayroll folder CT Catch-Up Withholding.rpt.
- Please read the Release Bulletin included with the Product Update for important information regarding changes and installation instructions.
Please don’t hesitate to contact us if you need technical help with downloading or applying this Product Update. Give us a call at 860-678-4401 or send us an email (abratechsupport@sage.com).
Live Chat is available from SupportPlus Online. While not intended for the complex issues or balancing questions, Live Chat is great when you need help from a customer support representative on locating and applying the tax updates, locating pertinent documentation and locating our helpful videos.
Note for our customers processing payroll in the state of Connecticut: Our release of Abra Suite Version 9.1 will coincide within a few weeks of the 3rd Quarter Tax Updates. Therefore, Version 9.1 will not address the ‘Connecticut State Income Tax Calculation Updates’ until the 3rd Quarter 2011 product release for Version 9.1. If you are planning to upgrade to Version 9.1, we recommend upgrading with the availability of the 3rd Quarter product tax updates.
