Connecticut Wage and Payroll Tax Facts

February 02, 2024

Having to comply with unique state taxes and wage laws can make processing payroll doubly daunting. Here’s everything you need to know about these rates and laws for the state of Connecticut.

Connecticut uses minimum wage rates that are substantially higher than the rates required by the federal government in the Fair Labor Standards Act (FLSA). In fact, the statewide rate is over double the rate required by the federal government, and several cities have equally high or greater wage rates for local contractors. 
 
When it comes to processing payroll, Connecticut-based organizations must handle the following taxes in addition to those required by the federal government:

The below information was last updated January 30, 2024. It is not intended as legal or tax advice.


Connecticut Minimum Wage Rates

Wage Type

Connecticut Rates

Federal Rates

Minimum Wage

$15.69

$7.25

Tipped Minimum Wage

$6.38
$8.23 (bartenders only)

$2.13

Actual Tip Credit

$9.31
$7.46 (bartenders only)

$5.12


Connecticut State Income Tax (SIT) Rates

Connecticut's SIT is progressive, meaning it adjusts based on the income level of the employee paying the tax: 

Filing Status Income Tax Bracket
[Over X] - [But not over Y]
2024 Income Tax Rate
Single / Married (filed separately) $0 - $10,000 2.20% of excess over $0
$10,000 - $50,000 $200 + 4.50% of excess over $10,000
$50,000 - $100,000 $2,000 + 5.50% of excess over $50,000
$100,000 - $200,000 $4,750 + 6.00% of excess over $100,000
$200,000 - $250,000 $10,750 + 6.50% of excess over $200,000
$250,000 - $500,000 $14,000 + 6.90% of excess over $250,000
$500,000 or greater $31,250 + 6.99% of excess over $500,000
Married (filed jointly) $0 - $20,000 2.20% of excess over $0
$20,000 - $100,000 $400 + 4.50% of excess over $20,000
$100,000 - $200,000 $4,000 + 5.50% of excess over $100,000
$200,000 - $400,000 $9,500 + 6.00% of excess over $200,000
$400,000 - $500,000 $21,500 + 6.50% of excess over $400,000
$500,000 - $1,000,000 $28,000 + 6.90% of excess over $500,000
$1,000,000 or greater $62,500 + 6.99% of excess over $1,000,000
Head of Household $0 - $16,000 2.20% of excess over $0
$16,000 - $80,000 $320 + 4.50% of excess over $16,000
$80,000 - $160,000 $3,200 + 5.50% of excess over $80,000
$160,000 - $320,000 $7,600 + 6.00% of excess over $160,000
$320,000 - $400,000 $17,200 + 6.50% of excess over $320,000
$400,000 - $800,000 $22,400 + 6.90% of excess over $400,000
$800,000 or greater $50,000 + 6.99% of excess over $800,000

 

Additional Connecticut SIT Details

Supplemental Withholding Computation

Add the supplemental compensation to overall compensation and use the corresponding rate above. 

Valid Filing Statuses

  • A = Married/Civil Union filing separately or filing jointly with both spouses employed; income less than $100,500
  • B = Head of Household
  • C = Married/Civil Union filing jointly with one spouse employed
  • D = Married/Civil Union filing jointly with both spouses employed; income greater than $100,500
  • E = Exempt (no withholdings)
  • F = Single

Exemptions

  • Any services or individuals not subject to withholding under the Internal Revenue Code
  • Certain low-income persons
  • Certain employees of interstate carriers
  • Nonresidents working 15 days or less in Connecticut
  • Nonresident spouses of military personnel

Form W-4

Form CT-W4

Reconciliation Frequency

Annual


Connecticut State Unemployment Insurance (SUI) Rates

SUI provides unemployment benefits to eligible workers who are unemployed through no fault of their own (as determined by state law) and meet the state’s eligibility requirements.

Connecticut SUI Tax Details

Taxable Wage Base

$25,000

Employee Subject to Tax

No

Rates for Experienced Employers

1.90% - 6.80%

Rates for New Employers

2.80%

Effective Period

Calendar Year

Voluntary Contributions Allowed

No


Connecticut State Disability Insurance (SDI) Rates

SDI benefits are funded by employees through mandatory payroll deductions from each paycheck. Connecticut, however, doesn't require employers to collect an SDI tax.


Miscellaneous Connecticut Tax Information

Reciprocal Agreement(s)

Reciprocal agreements are when workers who live and work in different states are only required to pay taxes to the state where they live. Connecticut currently has no reciprocal agreements with any other states.

This doesn’t mean, however, that interstate workers living in Connecticut pay double. It’s federally illegal for two states to tax the same income. In most cases, the employee’s work state will credit or refund them at tax time based on the taxes they owe their home state. If the tax rates differ, the employee must cover the difference.

Paid Sick Leave (PSL) Taxes

The state of Connecticut doesn’t require employers to collect PSL taxes, but it does have a program providing such leave to eligible employees:

Connecticut PSL Details
Covered Employees All service workers (i.e., non-exempt and paid hourly) but not temporary workers
Covered Employers Those with 50 or more Connecticut-based employees
Accrual Method(s) 1 hour per 40 hours worked
Annual Accrual Maximum 40 hours
Carryover Maximum 40 hours
Probationary Period Yes; employees have to work 680 hours of employment before using sick leave
Wage Replacement Either the worker's normal hourly wage OR the minimum fair wage rate during the leave, whichever is greater.
FAQs Paid Sick Leave Guidance

Note: Per H.B. 5005, several amendments to the state's PSL program will go into effect starting January 1, 2025, including expansion of covered employees, covered employers, and accrual rates. For more information, refer to our tax alert

Paid Family and Medical Leave (PFML) Taxes

Like SDI, Connecticut's Paid Family Leave (PFL) program is funded via mandatory payroll deductions from an employee's gross pay:

Connecticut PFL Details
Covered Employees

Those who have both earned at least $2,325 in the highest quarter of the first four of the five most recently completed quarters and are either:

  • currently employed by a covered employer
  • have been employed by a covered employer in the last 12 weeks
  • are self-employed or a sole proprietor residing in the state who enrolled in coverage
Covered Employers All employers with 1 or more employees
Tax Rate 0.5%
Wage Base Limit $168,600
Maximum Leave Available 12 weeks
Wage Replacement*
  • If the employee's average weekly wage is equal to or less than the state's minimum wage rate multiplied by 40 (i.e., $600), the employee will receive 95% of their wages during leave.
  • If the employee's average weekly wage is greater than $600, the employee will receive 95% of $560 plus 60% of the amount that exceeds $600.
Wage Replacement Cap The state's minimum wage rate multiplied by 60 (i.e., $900)
Online Registration CT Paid Leave Homepage
Payments Due Quarterly
FAQs Paid Family Leave FAQs

*For example, if Employee A's weekly wages are $600, their weekly wage replacement during leave would be $570 (600 x 0.95 = 570). However, if Employee A's weekly wages were $650, their weekly wage replacement during leave would instead be $600 ( (600 x 0.95) + ([650 - 600] x 0.60) = 532).


Connecticut Employer Registration

The agencies below can help with your state-based employer registration, including best practices, account numbers, and unemployment information. Contact the Department of Revenue for withholding tax topics and the Department of Labor for unemployment tax topics.

Registration Details

Department of Revenue

Department of Labor

Phone

(860) 297-5962 (860) 263-6000

Online Registration

myconneCT Homepage ReEmployCT Registration Page

Registration Instructions

Online registration is required. Account numbers will be issued in 1-2 weeks. Online registration is required. Account numbers will be issued during the online process.

Employer Self-Service Login

myconneCT Homepage ReEmployCT Login Page

Additional Connecticut Payroll Tax Resources

 

This information is provided as a courtesy and may be updated at any time. It is not intended as legal or tax guidance. If you have questions or concerns, we encourage you to seek the advice of a qualified CPA, tax attorney, or advisor.

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