Sec. 12-707. Payment to commissioner of taxes withheld by employers.
Sec. 12-707. Payment to commissioner of taxes withheld by employers. (a)(1)
Each employer required to deduct and withhold tax under this chapter from the wages
of employees shall be liable for such tax and shall file a withholding return as prescribed
by the Commissioner of Revenue Services and pay over to the commissioner, or to a
depositary designated by the commissioner, the taxes so required to be deducted and
withheld at the times specified in subsection (b) of this section.
(2) Each payer of nonpayroll amounts shall deduct and withhold tax under this
chapter from the nonpayroll amounts of payees, shall be liable for such tax, and shall
file a withholding return as prescribed by the commissioner and pay over to the commissioner, or to a depository designated by the commissioner, the taxes so required to be
deducted and withheld at the times specified in subsection (b) of this section.
(b) (1) (A) With respect to the tax required to be deducted and withheld under this
chapter from wages paid during any calendar year beginning on or after January 1, 2005,
and in accordance with an annual determination described in subdivision (2) of this
subsection, each employer shall be either a weekly remitter, monthly remitter or quarterly remitter for the calendar year. If an employer is a weekly remitter, the employer
shall pay over to the commissioner the tax required to be deducted and withheld under
this chapter in accordance with subdivision (3) of this subsection. If an employer is a
monthly remitter, the employer shall pay over to the commissioner the tax required to
be deducted and withheld under this chapter in accordance with subdivision (4) of this
subsection. If an employer is a quarterly remitter, the employer shall pay over to the
commissioner the tax required to be deducted and withheld under this chapter in accordance with subdivision (5) of this subsection. Notwithstanding any provision of this
subsection, if an employer is a household employer, the employer shall pay over to
the commissioner the tax required to be deducted and withheld under this chapter in
accordance with subdivision (6) of this subsection.
(B) With respect to the tax required to be deducted and withheld under this chapter
from nonpayroll amounts paid during any calendar year beginning on or after January
1, 2005, and in accordance with an annual determination described in subdivision (2)
of this subsection, each payer shall be either a weekly remitter, monthly remitter or
quarterly remitter for the calendar year. If a payer is a weekly remitter, the payer shall
pay over to the commissioner the tax required to be deducted and withheld under this
chapter in accordance with subdivision (3) of this subsection. If a payer is a monthly
remitter, the payer shall pay over to the commissioner the tax required to be deducted
and withheld under this chapter in accordance with subdivision (4) of this subsection.
If a payer is a quarterly remitter, the payer shall pay over to the commissioner the tax
required to be deducted and withheld under this chapter in accordance with subdivision
(5) of this subsection.
(2) (A) The annual determination for an employer required to deduct and withhold
tax under this chapter shall be based on the employer's reported liability for the tax
required to be deducted and withheld under this chapter during the twelve-month look-back period, provided, if any employer fails timely to file one or more required withholding tax returns for the four quarterly periods within the twelve-month look-back period,
the commissioner may base the annual determination for the employer on any information available to the commissioner. If an employer's reported liability for the tax required
to be deducted and withheld under this chapter during the twelve-month look-back
period was more than ten thousand dollars, the employer is a weekly remitter for the
calendar year next succeeding such twelve-month period. If an employer's reported
liability for the tax required to be deducted and withheld under this chapter during the
twelve-month look-back period was more than two thousand dollars but not more than
ten thousand dollars, the employer is a monthly remitter for the calendar year next
succeeding such twelve-month period. If an employer's reported liability for the tax
required to be deducted and withheld under this chapter during the twelve-month look-back period was two thousand dollars or less, the employer is a quarterly remitter for
the calendar year next succeeding such twelve-month period. Notwithstanding any provision of this section, if an employer is a seasonal employer, the annual determination
shall be based on the seasonal employer's reported liability for the tax required to be
deducted and withheld under this chapter during the twelve-month look-back period
multiplied by a fraction, the numerator of which is four, and the denominator of which
is the number of quarterly periods during such twelve-month period that the employer
paid wages to employees.
(B) The annual determination for a payer required to deduct and withhold tax under
this chapter shall be based on the payer's reported liability for the tax required to be
deducted and withheld under this chapter during the look-back calendar year, provided,
if any payer fails timely to file the required withholding tax return for the look-back
calendar year, the commissioner may base the annual determination for the payer on
any information available to the commissioner. If a payer's reported liability for the tax
required to be deducted and withheld under this chapter during the look-back calendar
year was more than ten thousand dollars, the payer is a weekly remitter for the calendar
year for which the annual determination is being made. If a payer's reported liability
for the tax required to be deducted and withheld under this chapter during the look-back
calendar year was more than two thousand dollars but not more than ten thousand dollars,
the payer is a monthly remitter for the calendar year for which the annual determination
is being made. If a payer's reported liability for the tax required to be deducted and
withheld under this chapter during the look-back calendar year was two thousand dollars
or less, the payer is a quarterly remitter for the calendar year for which the annual
determination is being made.
(3) (A) An employer that is a weekly remitter shall pay over to the department the
tax required to be deducted and withheld from wages under this chapter on or before
the Wednesday next succeeding the weekly period during which the wages from which
the tax was required to be deducted and withheld were paid to employees.
(B) A payer that is a weekly remitter shall pay over to the department the tax required
to be deducted and withheld from nonpayroll amounts under this chapter on or before
the Wednesday next succeeding the weekly period during which the nonpayroll amounts
from which the tax was required to be deducted and withheld were paid to payees.
(4) (A) An employer that is a monthly remitter shall pay over to the department
the tax required to be deducted and withheld from wages under this chapter on or before
the fifteenth day of the month next succeeding the month during which the wages from
which the tax was required to be deducted and withheld were paid to employees.
(B) A payer that is a monthly remitter shall pay over to the department the tax
required to be deducted and withheld from nonpayroll amounts under this chapter on
or before the fifteenth day of the month next succeeding the month during which the
nonpayroll amounts from which the tax was required to be deducted and withheld were
paid to payees.
(5) (A) An employer that is a quarterly remitter shall pay over to the department
the tax required to be deducted and withheld from wages under this chapter on or before
the last day of the month next succeeding the quarterly period during which the wages
from which the tax was required to be deducted and withheld were paid to employees.
(B) A payer that is a quarterly remitter shall pay over to the department the tax
required to be deducted and withheld from nonpayroll amounts under this chapter on
or before the last day of the month next succeeding the quarterly period during which
the nonpayroll amounts from which the tax was required to be deducted and withheld
were paid to payees.
(6) An employer that is a household employer shall pay over to the department the
tax required to be deducted and withheld under this chapter on or before the April fifteenth next succeeding the calendar year during which the wages from which the tax
was required to be deducted and withheld were paid to household employees.
(c) In the case of an overpayment of tax under this chapter by an employer, refund
or credit shall be made to the employer only to the extent that the amount of such
overpayment was not deducted and withheld by the employer.
(d) The amount of tax required to be deducted and withheld and paid over to the
commissioner under this chapter, when so deducted and withheld, shall be held to be a
special fund in trust for the state. No employee or other person shall have any right of
action against the employer in respect to any moneys deducted and withheld from wages
and paid over to the commissioner in compliance or in intended compliance with this
chapter.
(e) As used in this section:
(1) "Employer" means an employer, as defined in Section 3401 of the Internal Revenue Code;
(2) "Payer" means a person making a payment of nonpayroll amounts to one or
more payees;
(3) "Payee" means a person receiving a payment of nonpayroll amounts from a
payer;
(4) "Nonpayroll amounts" includes (A) gambling winnings, other than Connecticut
lottery winnings, that are paid to a resident, or to a person receiving payment on behalf
of a resident, and that are subject to federal income tax withholding; (B) Connecticut
lottery winnings that are required to be reported by the Connecticut Lottery Corporation
to the Internal Revenue Service, whether or not subject to federal income tax withholding, whether paid to a resident, nonresident or a part-year resident, and whether paid to
an individual, trust or estate; (C) pension and annuity distributions, where the recipient
is a resident individual and has requested that tax be deducted and withheld under this
chapter; (D) military retired pay, where the payee is a resident individual and has requested that tax be deducted and withheld under this chapter; (E) unemployment compensation, where the recipient has requested that tax be deducted and withheld under
this chapter; and (F) payments made to an athlete or entertainer, where the payments
are not wages for federal income tax withholding purposes and where the commissioner
requires the payer to deduct and withhold tax under this chapter;
(5) "Reported liability" means, in the case of an employer, the liability for the tax
required to be deducted and withheld under this chapter, as shown on the employer's
withholding tax returns for the four quarterly periods within the twelve-month look-back period, and, in the case of a payer, the liability for the tax required to be deducted
and withheld under this chapter, as shown on the payer's withholding tax return for the
look-back calendar year;
(6) "Twelve-month look-back period" means the twelve-month period that ended
on the June thirtieth next preceding the calendar year for which the annual determination
for an employer is made by the commissioner;
(7) "Look-back calendar year" means the calendar year preceding by two years the
calendar year for which the annual determination for a payer is made by the commissioner;
(8) "Seasonal employer" means an employer that regularly in the same one or more
quarterly periods of each calendar year pays no wages to employees;
(9) "Household employee" means an employee whose services of a household nature in or about a private home of an employer constitute domestic service in a private
home of the employer, as the phrase is used in Section 3121(a)(7) of the Internal Revenue
Code or in regulations adopted thereunder;
(10) "Household employer" means an employer of a household employee;
(11) "Weekly period" means the seven-day period beginning on a Saturday and
ending on the following Friday; and
(12) "Quarterly period" means the period of three full months beginning on the first
day of January, April, July or October.
(June Sp. Sess. P.A. 91-3, S. 58, 168; May Sp. Sess. P.A. 92-5, S. 7, 37; P.A. 94-139, S. 1, 2; P.A. 96-221, S. 21, 25;
P.A. 03-107, S. 4; P.A. 04-201, S. 5.)
History: June Sp. Sess. P.A. 91-3, S. 58, 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; P.A. 94-139 allowed
employer withholding less than $500 to file return and pay over taxes on or before the last day of the month next succeeding
the calendar quarter for which the taxes were deducted and withheld, effective May 24, 1994, and applicable to taxes
deducted and withheld on or after January 1, 1995; P.A. 96-221 limited provision re payment of taxes withheld of less
than $500 per quarter to cases where federal law requires employer to pay withheld federal taxes on or before the last day
of the month next succeeding such calendar quarter, effective June 4, 1996; P.A. 03-107 divided existing provisions into
Subsecs. (a) and (b), added provision in Subsec. (a) re certain refunds to employers and made a technical change in Subsec.
(b), effective for calendar years commencing on or after January 1, 2003; P.A. 04-201 divided existing provision into
Subsecs. (a)(1), (c) and (d), amended Subsec. (a) to delete provision re deduction and withholding and make conforming
changes in Subdiv. (1) and add Subdiv. (2) re nonpayroll amounts withheld by employers, added new Subsec. (b) re
schedule for remittance of withheld amounts and added new Subsec. (e) re definitions, effective January 1, 2005, and
applicable to wages and nonpayroll amounts paid on or after that date.