Connecticut Tax

For Connecticut residents, you specify the employee's status.

Deltek Modification Date - 11/21/11

Enter the following field information for residents of Connecticut on the Withholding grid on the Payroll tab of the Employees hub:

Field	Description
Status	Enter one of the following in the Status field: A: Married and filing separately, or married with a combined income of $100,500.00 or less. B: Head of household. C: Married (spouse not working). D: Married (working spouse and combined income greater than $100,500.00), non-resident, or employees who want to avoid having too little tax withheld. F: Single filers. Deltek does not have a status E, but employees filing CT taxes with status E can select a Method of Amount and enter 0 in the Amount/Percent field on the Withholding grid on the Payroll tab of the Employees hub to arrive at the correct withholding amount.
Exemptions	Connecticut tax calculations do not use the Exemptions field.
Other Exemptions	Connecticut’s tax calculations do not use the Other Exemptions field.

Automatically Calculated Variables

Deltek automatically computes the following variables based on the filing status of the employee.

Exemption Amount

The Exemption Amount is determined by applying the employee’s annual gross earnings (less any 401(k) and 125/Cafeteria contributions) to the table, based on the employee’s filing status. Note that Filing Status D has no exemption amount.

Credit Percentage

The credit amount is calculated using the state’s credit percentage table.

How Deltek Calculates Tax

To calculate an employee's Connecticut State tax, Deltek does the following:

1. Multiplies the employee's gross pay per pay period by the number of pay periods in a year to determine annualized gross wages.
2. Subtracts the employee's Exemption amount and annualized 401(k) and 125/Cafeteria plan contributions from the employee's annualized gross wages.
3. Calculates the annual income tax using Tax Calculation Method 1.
4. Determines the credit percentage based on the state's credit percentage table.
5. Multiplies the annual income tax by one minus the credit percentage [Withholding amount x (1 - Credit Percentage)] to determine the net annual income tax.
6. Divides the net annual income tax by the number of pay periods in a year to determine the amount to be withheld for the pay period. If the result is less than or equal to zero, no tax is withheld.