STATE OF CONNECTICUT
THE STATE COMPTROLLER
55 ELM STREET
HARTFORD, CONNECTICUT 06106-1775
Prior Year Cash Recovery
- 1) Agency receives a check or money order from the
employee for the net amount of their original check plus federal and state
tax deductions. The agency deposits these funds into their account.
If you have outstanding recoveries that you are
collecting money on, the balance due is to be increased to add Federal &
State tax withheld.
2) Complete forms COP-9 and CO-1081 to begin the recovery
process. The COP-9 is to include the original gross pay, and the amount of
the FICA/Medicare and retirement deductions in their appropriate boxes on
line 1. If applicable, other deductions should be included in their
appropriate boxes. On the COP-9, the amount of the check is to include the
net plus federal and state taxes withheld.
Form CO-1081 should reflect the total deductions being
reversed, excluding federal and state tax withheld.
Forms COP-9 and CO-1081 are to be forwarded to the
Payroll Services Division with a copy of the agency's deposit slip showing
that the agency received the necessary amount required to process the
3) The Payroll Services Division will process the
reversal on the next payroll cycle. On that check date the agency will be
credited the appropriate deduction amounts.
Payroll Services Division will also process the W-2c
adjusting the employee's taxable wage and FICA/Medicare deductions for the
appropriate tax year. The W-2c will be forwarded to the agency and should
then be forwarded to the employee. Payroll Services will report the
adjustments to the Federal and State Government.
It is the employee's responsibility to file an amended
tax return with the IRS and the Department of Revenue Services, and if
appropriate, receive a refund of federal and/or state taxes.
- *The IRS and D.R.S. will not accept adjustments to an
employee's tax return after 3 years.
- *If an agency submits a prior year cancellation that
includes federal and state deductions, Payroll Services will adjust the
COP-9 and CO-1081 to remove the deductions. The agency will be responsible
for getting this money back from the employee.
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