Agreements with other jurisdictions. Written statement furnished to employees and payees. Treatment of taxes withheld.

Checkout our iOS App for a better way to browser and research.

(a) The Commissioner of Revenue Services may enter into agreements with the tax officers of other states, which require income tax to be withheld from the payment of wages and salaries, so as to govern the amounts to be withheld from the wages and salaries of residents of such states under this chapter. Such agreements may provide for recognition of anticipated tax credits in determining the amounts to be withheld and, under regulations prescribed in accordance with the provisions of chapter 54 by said commissioner, may relieve employers in this state from withholding income tax on wages and salaries paid to nonresident employees. The agreements authorized by this subsection are subject to the condition that the tax officers of such other states grant similar treatment to residents of this state.

(b) (1) Each employer required to deduct and withhold tax under this chapter from the wages of an employee shall furnish to each such employee with respect to the wages paid by such employer to such employee during the calendar year, on or before January thirty-first of the next succeeding year, a written statement as prescribed by the Commissioner of Revenue Services showing the amount of wages paid by the employer to the employee, the amount deducted and withheld as tax and such other information as said commissioner shall prescribe. Each such employer shall file a copy of such written statement with the Commissioner of Revenue Services on or before such January thirty-first date.

(2) Each payer and person other than a payer required to deduct and withhold tax under this chapter from nonpayroll amounts shall furnish to each payee, as defined in section 12-707, with respect to the nonpayroll amounts paid to such payee during the calendar year, on or before January thirty-first of the next succeeding year, a written statement as prescribed by said commissioner showing the amount of nonpayroll amounts paid to the payee, the amount deducted and withheld as tax and such other information as said commissioner shall prescribe. Each such payer shall file a copy of such written statement with said commissioner on or before such January thirty-first date.

(c) Amounts upon which tax is required to be withheld shall be taxable under this chapter as if no withholding were required, but any amount of tax actually deducted and withheld in any calendar year shall be deemed to have been paid to said commissioner on behalf of the employee or payee from whom withheld and such employee or payee shall be credited with having paid that amount of tax for the taxable year beginning in such calendar year.

(June Sp. Sess. P.A. 91-3, S. 57, 168; June Sp. Sess. P.A. 15-5, S. 126; P.A. 17-147, S. 7.)

History: June Sp. Sess. P.A. 91-3, S. 57, effective August 22, 1991, and applicable to taxable years of taxpayers commencing on or after January 1, 1991; June Sp. Sess. P.A. 15-5 amended Subsec. (b) to make technical changes and require employers to file copy of written statement of wages and withholdings with commissioner on or before January 31st, effective June 30, 2015; P.A. 17-147 amended Subsec. (b) to designate existing provisions re employer to furnish to employee written statement as Subdiv. (1) and add Subdiv. (2) re deduction and withholding of tax from nonpayroll amounts by payer and person other than payer required to deduct and withhold tax and written statement to be furnished to payee, and made technical and conforming changes, effective January 1, 2018.


Download our app to see the most-to-date content.