Sec. 12-705. Withholding of taxes from wages and other payments.
Sec. 12-705. Withholding of taxes from wages and other payments. (a) Each
employer maintaining an office or transacting business within this state and making
payment of any wages taxable under this chapter to a resident or nonresident individual
shall deduct and withhold from such wages for each payroll period a tax computed in
such manner as to result, so far as practicable, in withholding from the employee's
wages during each calendar year an amount substantially equivalent to the tax reasonably
estimated to be due from the employee under this chapter with respect to the amount
of such wages during the calendar year. The method of determining the amount to be
withheld shall be prescribed by regulations of the Commissioner of Revenue Services
adopted in accordance with chapter 54.
(b) The commissioner may, if such action is deemed necessary for the protection
of the revenue and under such regulations as he may adopt, require persons other than
employers (1) to deduct and withhold taxes from payments made by such persons to
residents of this state, nonresidents and part-year residents, (2) to file a withholding
return as prescribed by the commissioner and (3) to pay over to the commissioner, or
to a depositary designated by the commissioner, the taxes so required to be deducted
and withheld, in accordance with a schedule established in such regulations.
(c) The commissioner may adopt regulations providing for withholding from (1)
remuneration for services performed by an employee for his employer which does not
constitute wages, (2) wages paid to an employee by an employer not maintaining an
office or transacting business within this state or (3) any other type of payment with
respect to which the commissioner finds that withholding would be appropriate under
the provisions of this chapter if the employer and the employee, or, in the case of any
other type of payment, the person making and the person receiving such payment, agree
to such withholding. Such agreement shall be made in such form and manner as the
commissioner may, by regulation, prescribe. For purposes of this chapter remuneration,
wages or other payments with respect to which such an agreement is made shall be
regarded as if they were wages paid to an employee by an employer maintaining an
office or transacting business within this state to the extent that such remuneration or
wages are paid or other payments are made during the period for which the agreement
is in effect.
(June Sp. Sess. P.A. 91-3, S. 56, 168; May Sp. Sess. P.A. 92-5, S. 6, 37.)
History: June Sp. Sess. P.A. 91-3, S. 56, effective August 22, 1991, and applicable to taxable years of taxpayers
commencing on or after January 1, 1991; May Sp. Sess. P.A. 92-5 made various technical and minor changes, effective
June 19, 1992, and applicable to taxable years of taxpayers commencing on or after January 1, 1992.