Connecticut Payroll & Paycheck Tax Calculator
Managing payroll in the Constitution State shouldn't feel like navigating Hartford traffic at rush hour. From Stamford to New Haven, our Connecticut Payroll Tax Calculator makes calculating employee withholdings as smooth as Connecticut River sailing. Handle state income tax, paid family leave, and complex withholding requirements with confidence—all in one powerful tool.
Connecticut Payroll Tax Steps
Connecticut’s progressive tax system and comprehensive paid leave program can make payroll feel as intricate as a Yale University course. Our calculator helps you navigate Connecticut’s unique payroll landscape without getting lost in the details, ensuring accurate calculations whether you’re in Fairfield County or up in the Quiet Corner. Get precise withholdings every time, no Ivy League degree required.
Here are some key steps you’ll have to take to make smarter payroll decisions.
Step #1: Register with Connecticut DRS and DOL
To legally hire in Connecticut, you'll need to register with the Connecticut Department of Revenue Services (DRS) for withholding taxes and the Department of Labor (DOL) for unemployment insurance. Connecticut's online TSC (Taxpayer Service Center) and DOL systems streamline registration. Don't forget to register for Connecticut Paid Leave contributions as well.
New employers pay 2.1% unemployment tax on the first $15,000 of each employee's wages for their first two years.
Step #2: Navigate Connecticut's Comprehensive Form Requirements
The Constitution State requires thorough documentation:
- Federal W-4 and Connecticut W-4 forms for withholding
- Federal forms from the IRS: • Form 941 (Quarterly federal tax return) • Form 940 (Federal Unemployment Tax, FUTA) • W-2 and 1099 (Year-end wage reporting)
- New Hire Reports: Submit within 20 days to CT-NEWHIRES
- Workers' Compensation: Mandatory for all employers
- Form CT-941: Quarterly reconciliation of withholding
- Connecticut Paid Leave registration and reporting
- UC-2: Quarterly unemployment wage report
Connecticut also requires withholding for certain local taxes and contributions to the state's paid leave program.
Step #3: Master Connecticut's Minimum Wage and Overtime Laws
Connecticut's minimum wage is $16.35 per hour as of 2025—among the highest in the nation. Tipped employees in the hotel and restaurant industries must receive at least $6.38 per hour for food service workers and $8.23 for bartenders, with employers making up any shortfall.
For overtime, Connecticut follows federal rules with some additions: 1.5x regular pay after 40 hours per week. Additionally, Connecticut requires overtime pay for work on Sundays and holidays in certain retail establishments, regardless of weekly hours.
Step #4: Meet Connecticut's Pay Period and Leave Requirements
Connecticut law requires most employers to pay employees weekly, though some exemptions exist for executive, administrative, and professional employees who can be paid less frequently. Employers must provide written notice of pay schedules and any changes.
When employment ends, Connecticut has specific deadlines: terminated employees must receive final wages by the next business day, while employees who quit must be paid by the next regular payday.
Connecticut mandates several leave programs:
- Paid sick leave for service workers (1 hour per 40 hours worked)
- Connecticut Paid Leave: Up to 12 weeks of paid family and medical leave
- Additional protections for family violence victims
Step #5: Use our Simple Connecticut Payroll Calculator
Connecticut's complex tax structure requires careful calculation:
- Federal income tax withholding
- Connecticut state income tax (2% to 6.99% based on income)
- Connecticut Paid Leave contribution (0.5% of wages)
- FICA taxes (Social Security and Medicare)
- Unemployment taxes (FUTA and state UI)
Our calculator instantly processes all these elements, providing clear breakdowns of gross pay, deductions, and net pay.
Step #6: Submit Taxes and File Connecticut Payroll Reports
Connecticut employers juggle numerous filing obligations:
- Monthly CT-WH deposits for withholding
- Quarterly CT-941 reconciliation returns
- Quarterly UC-2 wage reports for unemployment
- Connecticut Paid Leave quarterly reports
- Annual reconciliation (CT-W3) by January 31
Most employers remit withholdings monthly through TSC. After two years, unemployment rates adjust based on experience, ranging from 0.1% to 6.8%.
Fingercheck and any related entities do not offer tax, accounting, or legal advice. This content is designed for informational purposes only and should not be considered a source of tax, legal, or accounting advice. It is recommended that you consult your tax, legal, and accounting advisors before undertaking any related activities or transactions.