CT SB01143

Establishes a payroll tax on employers beginning January 1, 2020, applied only to wages and compensation exceeding $40,000 per covered employee annually.

Tax rates increase progressively: 1.5% for 2020, 3% for 2021, and 5% for 2022 and thereafter, calculated quarterly on payroll expenses.

Employers must pay the tax to the Commissioner of Revenue Services using the same procedures as existing wage withholding taxes and cannot deduct the tax from employee wages.

Provides income tax credits to covered employees equal to the payroll tax paid on their behalf, calculated using the same escalating percentages and applied against their personal income tax liability.

Excess credits that exceed an employee's annual income tax liability may be carried forward to succeeding taxable years.