Explanation

Income taxes in Connecticut increased retroactive to January 1, 2011. Employers must make sure additional amounts are withheld beginning August 1, 2011 to make up for the fact that too little was withheld the first 7 months of the year. The make up withholding is to be spread across the remainder of the year. See: Connecticut Dept of Revenue for details.

Part I - Download New Tax Formulas for CT

To account for these changes Procare has created a free tax formula download. This is available to all Procare v10 Payroll users with a current update subscription.

1. Locate your unique password to install new Connecticut tax tables located on the Procare News tab (left side of the Procare Home screen). The password below is only an example.



2. Follow the instructions to Install Tax Tables. Although it talks about doing this for the new year the steps are the same.

Part II - Specify Pay Periods Remaining EVERY TIME you Calculate Checks

Important! Since the amount is spread over the remainder of the year it will be necessary to specify the number of pay periods remaining in your year JUST BEFORE you do paycheck calculation. You MUST do this EVERY TIME you calculate checks through the END of 2011.

1. At the Procare Home screen go to Utilities > Download Procare Support File.



2. Enter a Password of PR01 (that's a zero, not the letter "O") and click Download.



3.  Enter the number of remaining pay periods for 2011 and click Update. Be sure to include the current pay period. For example if there are 9 pay periods after this one, plus the current pay period, your answer would be 10.



4. Confirm the number is correct. Click Yes to continue or No if you need to change the number.



5. You are now ready to Calculate Payroll Checks for this pay period.

Important! Repeat this procedure the next time you are ready to issue checks. Continue to do so through the end of 2011.

tags: CT tax rates, CT tax formulas, CT tax increase, CT income tax, CT withholdings, connecticut tax rates, connecticut tax formulas, connecticut tax increase, connecticut income tax