HARTFORD, CT (WCBS 880) – Connecticut residents are well aware of the new and higher sales taxes that have kicked in, and now, they must brace for smaller paychecks.
WCBS 880 Connecticut Bureau Chief Fran Schneidau With The Bad News
The higher withholding tax kicks in on Aug. 1.
Andrew Markowsky, head of the National Federation of Independent Businesses in Connecticut, says not only does this mean smaller paychecks, but a lot of recalculating for those who pay estimated taxes quarterly.
“They’re going to have to readjust those quarterly returns retroactive, as well as plan ahead moving forward,” Markowsky told WCBS 880 Connecticut Bureau Chief Fran Schneidau.
Markowsky notes higher taxes starting Monday are retroactive to January.
“That means that small business owners need to recalculate the withholding for both themselves, as an owner, as well as their employees,” said Markowsky.
The state tax department has issued pages of new withholding tables to help everybody recalculate.
Single or joint filers earning $50,000 a year will be hit with $200 in withholding taxes.