Microsoft Dynamics GP State of Connecticut Tax Update

In yesterday’s blog, I explained that the State of Connecticut has had some issues with the new tax rules that were effective 8.1.2011.   They are issuing a press release next week that will clarify some of the calculation steps for all companies to abide by.  Currently, the State of Connecticut has contradictory information on their website among the different published documents.

Here are the current areas of concern we have with the state, but not limited to:

1.       Additional withholding , there was nothing specified in the original calculation method around addition amounts and how they should be factored in.

2.        If employees are hired after 8/1 , they should have a reduce amount taken as they started later in the year and the YTD step in the calculation should be skipped, again, was not in the released calculation rules
( Microsoft will probably have a new filing status for this type of employee identifying the later start date and it will have the correct calculations steps for them)

After the state issues the updated guidance, Microsoft will give high priority to addressing these State of Connecticut tax code-related issues.

Tags: CT state income tax, State of CT tax withholding

This entry was posted on Tuesday, August 9th, 2011 at 9:59 am and is filed under Microsoft Dynamics GP, What’s Going On. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.