Just in case anyone here has CT customers who also use payroll. The State of CT changed tax rates in 2011 and they put out these tables which worked fine so long as you were paid the same rate from payroll to payroll.
The problem happened when an employee was NOT paid the same from pay period to pay period. Because the tables were trying to retroactively capture tax the withholding for CT was all screwed up.
In essence the State guidance was ""just compute the tax manually"" ....
Needless to say this was a pretty big issue for companies with large payrolls. I have a few employment agencies were it wasn't really practical for them to manually compute taxes.
This problem appears to go away in 2012 as the recapture is removed. Just an FYI in case you are working any CT customers with payroll.
Here's the email I just sent to my payroll users who have CT employees:
I just noticed this article in the Courant about other employees in the state struggling with CT Withholding in 2011.
The issue is that the tables provided by the state compute too much withholding if the pay period to pay period earnings change (such as with vacation, sick , bonus, etc).
Thankfully it appears (according to the article) that this problem goes away in 2012.
Here's the article:
http://www.courant.com/business/hc-state-income-tax-overwithholding-20111230,0,6661861.story
And here are the 2012 manual tax tables in case you haven't received a copy:
http://www.ct.gov/drs/cwp/view.asp?a=1509&q=489930