Connecticut payroll taxes for employers (2026)

Connecticut details to set up before the first payroll

CT Paid Leave: 0.5%, taken from wages

The CT Paid Leave Authority sets contributions at 0.5% of wages, deducted from employees and remitted quarterly by you, on wages up to the Social Security wage base ($184,500 in 2026). The Authority's board kept the rate at 0.5% for 2026. Its page describes the deduction from employee pay but does not state in so many words that employers pay nothing, so read your own obligations on ctpaidleave.org.

The 1.0% fund solvency tax

Connecticut's 2026 contribution range is 1.1% to 9.9%. That is a charged rate of 0.1% to 8.9% (the 2026 maximum was capped at 8.9%) plus a 1.0% fund solvency tax on everyone. The Department of Labor does not say whether the 1.9% new employer rate already includes the solvency tax. The US Department of Labor's July 2026 summary shows 0.1% to 10.0%, which is the charged-rate schedule alone. Compare Connecticut with New York and other states in the SUTA rate table.

Weekly paydays

Connecticut requires weekly pay. Longer intervals, up to monthly, need approval from the labor commissioner (US Department of Labor payday table). See pay schedule options if you are setting up from scratch.

Quick rules

• Minimum wage is $16.94 in 2026 and $17.48 from January 1, 2027 (announced August 5, 2026). Tipped cash wages are $6.38 for hotel and restaurant staff and $8.23 for bartenders. All states are in the 2026 minimum wage table.
• Discharged employees are paid the next business day; those who quit, on the next regular payday (Conn. Gen. Stat. 31-71c).
• New hires are reported within 20 days on Form CT-W4 by fax or mail, or within 14 days if you report by secure FTP.
• Workers comp covers all employers with few exceptions and no headcount minimum. Out-of-state employers must cover Connecticut workers.
• Our research found no city or town income taxes, though that was not confirmed on a state page.

Connecticut employer payroll facts at a glance

Registering with Connecticut agencies

1. Get your federal EIN.
2. Register for withholding with the Department of Revenue Services (DRS). We could not open the DRS withholding page or Circular CT for 2026, so take rates from DRS directly or your payroll provider.
3. Register for unemployment insurance with the Connecticut Department of Labor (its "How do I register" page is in the sources).
4. Set up CT Paid Leave contributions with the CT Paid Leave Authority and remit quarterly.
5. Report new hires within 20 days (14 days by secure FTP).
6. Buy workers comp from a licensed insurer, or qualify to self-insure or join a group self-insurance plan.

Worked example: a $50,000 Connecticut hire

Connecticut's UI base is $27,000, so the state line stops well short of the salary.

That comes to $4,380, 8.76% above salary. If the 1.0% solvency tax turns out to sit on top of the 1.9%, the state line becomes $783 and the total $4,650. The employee has $250 withheld for CT Paid Leave (0.5% x $50,000), plus state income tax. The calculator handles the federal lines and UI for any salary.

For a full picture including benefits and workers comp, read what payroll costs a small business.

Connecticut payroll providers and PEOs

For Connecticut, check that a provider runs weekly payroll without a per-run surcharge, remits CT Paid Leave quarterly and handles the CT-W4 new hire filing. Gusto Simple costs $49 a month plus $6 per person, and SurePayroll lists $9.99 a month for multi-state payroll if you also employ people in New York or Massachusetts (both checked October 16, 2026). See the best payroll software for more.

A private 50-state guide from Harbor Compliance puts Connecticut among the states that license or register PEOs; we could not check that against a Connecticut source. Compare PEO providers and PEO fees before you ask for quotes.