Key figures
Connecticut payroll
2026, with sources
Registration and the taxes
A new employer registers with DRS for withholding through myconneCT and with the Department of Labor for unemployment insurance through ReEmployCT. Connecticut income tax is withheld from wages and reconciled quarterly on Form CT-941; W-2 state copies go in with Form CT-W3 by January 31, and the W-2s are not considered filed until myconneCT issues the CT-W3 confirmation number.
Unemployment insurance in 2026 is charged on the first $27,000 of each employee’s wages, at 1.9% for a new employer. That is $513 per employee earning at least the base. The base rises with indexing each year.
CT Paid Leave is a separate, employee-funded program: employers deduct 0.5% of wages, up to the Social Security wage base, and remit it to the CT Paid Leave Authority with a quarterly wage report. It applies from the first Connecticut employee, and an employer may substitute a private plan with equal or better benefits.
Wages, leave and paydays
Connecticut indexes its minimum wage to the federal employment cost index, so it changes every January 1. Paid sick leave is being phased in to cover almost every employer: 25 or more employees in 2025, 11 or more in 2026, one or more in 2027. A six-person startup hiring in New Haven this year is outside it; next year it is in, and should set up accrual in payroll now.
- Minimum wage: $16.94 an hour in 2026, rising to $17.48 on January 1, 2027.
- Paydays: weekly, on a regular payday designated in advance.
- Final pay: next business day after a discharge; next regular payday after a quit or layoff.
- Paid sick leave: employers with 11+ employees in 2026, 1+ from 2027; 1 hour per 30 worked, up to 40 hours.
Deadlines
- Last day of the month after the quarterQuarterly withholding reconciliationForm CT-941
- Jan 31Annual reconciliation and W-2 state copiesForm CT-W3 with W-2s
- QuarterlyCT Paid Leave contributions and wage report
The federal baseline
This page covers what Connecticut adds. The federal rules underneath it apply here too.
Common questions
Can we run payroll semi-monthly in Connecticut?
Weekly is the default. Connecticut law requires employers to pay all wages due weekly on a regular payday designated in advance; paying less often generally needs approval from the Labor Commissioner. Most payroll providers will ask, but the default setting in many is semi-monthly.
Do we have to offer paid sick leave?
In 2026, only if you have 11 or more employees in Connecticut, counted on the payroll for the week containing January 1. From January 1, 2027 the law covers employers with one or more employees. Employees accrue an hour for every 30 hours worked, up to 40 hours a year, and can use it after 120 days.
Payroll next door
- MAMassachusetts payrollMassachusetts payroll runs through DOR, DUA and DFML: 5% withholding, a $15,000 UI wage base at 2.42% for new employers, PFML at 0.88% (0.46% under 25), and final pay on the last day.
- NYNew York payrollNew York payroll is state and city at once: one NYS-45 for withholding and UI, a disability and Paid Family Leave policy you buy from a carrier, the MCTMT in the commuter district, and NYC’s own leave law.
- RIRhode Island payrollRhode Island payroll runs through the Division of Taxation and DLT: a $30,800 UI wage base at 1.21% for new employers, and TDI/TCI paid by employees at 1.1% of the first $100,000.
How Connecticut compares
- No tax on wagesStates with no state income tax on wagesConnecticut: withholds state income tax. 9 of 51 states are on the list.
- Paid leave payrollStates with a paid leave or disability payroll programConnecticut: state paid leave or disability program. 16 of 51 states are on the list.
- Local payroll taxStates with city, county or district payroll taxesConnecticut: state-level only. 14 of 51 states are on the list.
Founder guides on this
- PeopleContractor or employee? Classification for startupsContractor or employee depends on control, not the contract. The IRS test, state rules, 1099s, payroll registration and the cost of getting it wrong.
- RunwayBurn rate and runway: how to calculate them correctlyGross burn, net burn and months of runway, done the way an investor checks them: from cash, averaged, and with the hires you’ve already committed to.
- EquityStock options, 409A valuations and vesting for startupsHow option strike prices are set by a 409A valuation, how vesting and the cliff work, and why ASC 718 makes every grant an expense on your P&L.
More of the Connecticut guide
- AccountingAccounting and state tax in ConnecticutCorporate tax, conformity to federal rules, apportionment and what it does to your books
- ReceivablesReceivables and sales tax in ConnecticutSales tax registration, economic nexus, whether SaaS is taxable, and collecting from customers
- PayablesPayables and contractors in ConnecticutPaying vendors and contractors: 1099 filing, use tax, contractor tests and withholding
- ComplianceCompliance and filings in ConnecticutRegistering to do business, annual reports, franchise tax and the filing calendar
- AdvisoryAdvisory: credits and decisions in ConnecticutCredits, incentives and the decisions that are cheaper to get right the first time
Sources
Checked against each agency’s own page on . Rates and thresholds change, usually on January 1.
General information for US companies, not tax, legal or accounting advice for yours. Rules and thresholds change; confirm the specifics with a CPA or the agency before you act on them.