Connecticut State Tax Routine (CTTX)*

The Connecticut (CTTX) State Tax Special Routine processing utilizes the following steps:

Line 1

Multiply the employee’s gross wages for the current payroll period by the number of payroll periods in a year to obtain their Annualized Gross Income (GI).

Line 2

Determine the Personal Exemption Amount from the Tax Parameters State reference page (TAXPS) according to the employee’s Annualized Gross Income bracket.

Line 3

Annualized salary: Step 1-step 2

Line 4

Determine Total Withholding amount:

  1. Using the Marginal Tax Rates (DEDX) entries for Connecticut State Tax deduction, compute tax on the Taxable Amount (Line 3).

  2. Determine the 2% Tax Rate Phase Out Add-Back Amount from the Tax Parameters State reference page (TAXPS) according to the employee’s Annualized Gross Income bracket.

  3. Determine the Tax Recapture Amount from the Tax Parameters State reference page (TAXPS) according to the employee’s Annualized Gross Income bracket.

Total Withholding Amount= Step 4a+4b+4c.

Line 5

Determine the Personal Tax Credits from the Tax Parameters State reference page (TAXPS) according to the employee’s Annualized Gross Income bracket.

Line 6

Determine Tax Withholding Amount:
Line 4*1-Personal Tax credits (Line 5).

Line 7

Divide the amount on Line 6 by the number of payroll periods in a year to determine the employee’s Connecticut Withholding Tax for the pay period.

Data Setup Considerations

Sites need to ensure that they have implemented the following Business Process and Data Setup changes at their site prior to using the Connecticut Tax Routine.

  1. Tax Parameters State (TAXPS) setup for Connecticut State Tax Deductions:

  1. The Adjusted Gross Income field is the lower number of each Tax Type bracket for the Specified Marital Status.

  2. The Standard Deduction field is the amount allowed for a given Tax Type bracket for the Specified Marital Status.

  3. Different Tax Types in TAXPS include:

  • Personal Exemption Amount

  • 2% Tax Rate Phase Out Add-Back Amount

  • Tax Recapture Amount

  • Personal Tax Credits

  1. The Income Tax Rate is established on the Marginal Tax Rates (DEDX) reference page.

  2. The Tax Parameters (TAXP) setup for Connecticut:

  1. Standard Deduction Amount is captured as a part of Standard Deduction if required.