What are the changes to the employer withholding calculation rules?
The withholding calculation rules were adjusted to reflect the increase in the highest marginal rate under each withholding code. It instructs employers how to calculate the amount of tax that should be withheld for the remainder of the year from employees who are affected by the increase in the highest marginal rate. 2. What are employers’ responsibilities as a result of the new 2009 withholding calculation rules? Employers with employees who are subject to the increase in the highest marginal rate are required to use the updated withholding calculation rules posted on the DRS website. Employers are required to determine the catch-up withholding amount for any employee subject to the highest marginal rate. The employer must calculate the employees annualized taxable income; calculate the 2009 Connecticut income tax on the annualized taxable income applying the highest marginal rate; subtract the year to date withholding amount from the calculated 2009 Connecticut income tax; and divid
