Effective January 1, 2018, some Connecticut employers will be required to withhold state income tax “from distributions made from an employer pension, annuity, profit-sharing plan, stock bonus, deferred compensation plan, individual retirement arrangement, endowment, or life insurance contract”.
The withholding requirement applies to payors, public or private, that (1) maintain an office or transact business in Connecticut and (2) make taxable payments to resident individuals. No change in the law is made for nonresidents.
The change applies to both private and public businesses who operate in Connecticut and “make taxable payments to resident individuals”.
For more details and a downloadable PDF, please click here.