DRS: 12-711(c)-5, Earnings of nonresident employees and officers rendering personal services within Connecticut

DRS has reproduced this regulation. This is an unofficial copy. Official copies of regulations ONLY are available from the Commission on Official Legal Publications, 111 Phoenix Avenue, Enfield, CT 06082,  colp@jud.state.ct.us. Copies of DRS forms and publications are available at http://www.ct.gov/drs.

Conn. Agencies Regs. 12-711(c)-5. Earnings of nonresident employees and officers rendering personal services within Connecticut.

(a)(1) When a nonresident employee who is compensated on an hourly, daily, weekly or monthly basis is able to establish the exact amount of pay received for services performed in Connecticut, such amount is included in Connecticut adjusted gross income derived from or connected with sources within this state.

(2) When no such exact determination of pay received for services performed in Connecticut is possible, the income of employees who are compensated on an hourly, daily, weekly or monthly basis shall be apportioned to Connecticut by multiplying the total compensation, wherever earned, from the employment, by a fraction the numerator of which is the number of days spent working in Connecticut and the denominator of which is the total working days both within and without Connecticut. The product is included in Connecticut adjusted gross income derived from or connected with sources within this state. The term "total working days" does not include days on which the employee was not required to work, such as holidays, sick days, vacations and paid or unpaid leave. For purposes of this section, when a working day is spent working partly in Connecticut and partly elsewhere, it is considered one-half of a day spent working in Connecticut.

Example: An auditor living in Massachusetts is employed by an accounting firm in Hartford at an annual salary of $33,000. She is not able to establish the exact amount of pay received for services performed in Connecticut. She works a total of 240 days in 1992, performing field audits in Rhode Island on 160 days of the year and working 80 days in Hartford. Her Connecticut adjusted gross income derived from or connected with sources within this state is $11,000, computed as follows:

                   $33,000 x 80   = $11,000
                             240

(b) If a nonresident employee performs services for more than one employer both within and without Connecticut and is unable to determine the exact amounts earned or derived in Connecticut, such employee shall determine separately for each employer the compensation attributable to Connecticut sources. The sum of the amounts of compensation attributable to Connecticut sources shall be included in determining the Connecticut adjusted gross income derived from or connected with sources within this state.

(c) While this section pertains to Section 12-711(c) of the general statutes, for purposes of supplementary interpretation, as the phrase is used in Section 12-2 of the general statutes, the adoption of this section is authorized by Section 12-701(c) of the general statutes.

(Effective November 18, 1994.)