Connecticut Resources

Payroll Tax Commission survey

MTAC members may have received the message below from the Connecticut Department of Revenue Services. This was mandated by General Assembly, which is considering replacing the state income tax with a payroll tax, as part of a workaround of the federal SALT cap established by Congress in the Tax Cuts and Jobs Act.

MTAC members are welcome to share their thoughts on this matter with MTAC at any time. You can send your comments to Joe Sculley via email.

Dear Taxpayer:

Public Act 19-117, §385, established a Connecticut Payroll Tax Commission to study implementation of a payroll tax on employers. A payroll tax is a tax paid by employers based on the wages paid to their employees.

To inform the Commission’s work, the Department of Revenue Services (DRS) is required to gather certain data necessary to evaluate the potential impact of instituting a state payroll tax.

The purpose of this communication is to inform you that on Thursday, August 15, 2019, you will receive an e-mail from DRS that includes a brief survey, with four questions about your business entity. DRS asks that you respond to this request for information at your earliest convenience, but no later than October 1, 2019.

Your response will help ensure DRS captures a representative cross-section of data from Connecticut’s business community. Please note the Commission is prohibited from disclosing any taxpayer information that DRS is not otherwise authorized to disclose under state law.

More information on the Connecticut Payroll Tax Commission is available online.