Connecticut recently released an updated version of CT-945, Annual Reconciliation of Withholding for Non-payroll Amounts (for TY 2017). CT-945 is the state-specific reconciliation form that is filed annually to report non-payroll amounts subject to Connecticut income tax withholding.
There is one important change to the most recent version of this form, which has to do with pension and annuity reporting:
- Effective January 1, 2018, payers who maintain an office or transact business in Connecticut and make payments of taxable pensions or annuity distributions to a resident individual are required to deduct and withhold tax from such distributions. This requirement applies to distributions from an employer pension, an annuity, a profit sharing plan, a stock bonus, a deferred compensation plan, an individual retirement arrangement, an endowment or a life insurance contract.
About the Author
Paul Ogawa is a Junior Regulatory Counsel at Sovos Compliance. As part of the Regulatory Analysis team, his main areas of focus are state and federal tax withholding, the Affordable Care Act (ACA), and Canadian tax information reporting. Prior to Sovos, Paul worked as a litigation attorney in Boston area law firms, representing clients in insurance subrogation claims, family law matters, and employment disputes. Paul is a member of the Massachusetts Bar, earned his B.A. from Brandeis University and his J.D. from the Suffolk University Law School.More Content by Paul Ogawa