Dear Friends and Neighbors,
With 2020 coming to an end, I wanted to make you aware of new policies affecting Connecticut taxpayers and businesses taking effect on January 1, 2021.
These changes include:
Pensions and Annuities – The percent of pension and annuity payments exempt from the income tax is set to increase from 28 to 42 percent.
Teacher Pensions – The percent of teacher pension payments exempt from the income tax will be doubled from 25 to 50 percent.
Payroll Tax – Employers must begin collecting a 0.5% payroll tax to contribute to the FMLI Trust Fund.
Capital Base Tax – The Capital Base Tax on Connecticut businesses begins a four-year phase-out until it is eliminated in 2024.
New legislation effective dates are typically January 1, July 1, and October 1 throughout the calendar year. These new laws may have an impact on you, your business, or our community.
I have highlighted some noteworthy new laws below and encourage you to take a look at the full list, which can be accessed by clicking here.
An Act Concerning Emergency Response by Electric Distribution Companies, The Regulations of Other Public Utilities and Nexus Provisions for Certain Disaster-Related or Emergency-Related Work Performed in the State.
This new law requires proportional representation for Connecticut on the boards of directors of prospective holding companies for PURA-regulated utilities. To review the whole summary, click here.
An Act Concerning Diabetes and High Deductible Health Plans
This new law establishes a price cap for certain diabetes-related prescriptions and expands the prescription drug monitoring program to include them.
To review the whole summary, click here.
Please pass this information along to those who may benefit from knowing what to expect in the New Year.
This is a press release from Klarides-Ditria's office.
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