Flag of Connecticut

Connecticut

North America

Running Payroll in Connecticut with Rippling

Connecticut has a top income tax rate of 6.99%, mandatory Paid Leave (CTPL) contributions, and Paid Sick Days law. Its proximity to NYC creates strong competition for financial services and tech talent. Rippling handles CT DRS, CTDOL, and CTPL filings.

Compliance Complexity
High
Understanding contractor classification rules is critical before engaging independent contractors.
Rippling Availability
Full
Understanding contractor classification rules is critical before engaging independent contractors.

Location Overview

Connecticut is a high-income Northeastern state with major strengths in financial services (Stamford/Greenwich hedge fund corridor), insurance (Hartford), pharmaceuticals, and defense. Connecticut payroll is defined by a progressive income tax (top 6.99%), mandatory Connecticut Paid Leave (CTPL) contributions, mandatory paid sick days, and a minimum wage above the federal floor. Connecticut’s proximity to New York City drives competitive salaries in Fairfield County.

Entity Requirement

What You Need Before Running Payroll Here.
  • Registered to do business in Connecticut (CT Secretary of State)
  • Connecticut withholding tax account (CT DRS)
  • Connecticut CTDOL account for SUI
  • Connecticut Paid Leave (CTPL) registration (CT Paid Leave Authority)
  • Workers’ Compensation insurance (mandatory)

Rippling Payroll Notes

How Rippling Handles Payroll Here.

Rippling’s Connecticut payroll module provides:

  • CT state income tax withholding (progressive 2–6.99%)
  • CT DRS withholding filings
  • CTDOL SUI quarterly filings
  • CTPL employee withholding (0.5% of wages); quarterly CT Paid Leave Authority remittance
  • CT Paid Sick Days accrual tracking
  • W-2 generation and e-filing by January 31

Payroll Compliance at a Glance

A quick view of the core payroll requirements, statutory rules, and operating details for this location.
Flag of Connecticut
US Dollar (USD)
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    Minimum Wage

    $15.69/hour (June 2024 — indexed to Employment Cost Index; among highest in the US for states without a separate NYC premium).
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    Payroll Cycle

    Connecticut requires wages paid at least weekly for most employees; bi-weekly permitted for salaried employees. CT DRS withholding: monthly or quarterly. CTDOL SUI: quarterly. CTPL: quarterly.
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    Working Hours

    No Connecticut daily overtime law (federal 40-hour weekly OT applies). 1.5× for hours over 40/week. One day of rest in seven required for manufacturing employees.
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    Payroll Tax

    <p>CT state income tax: progressive 2–6.99%. CT SUI: new employer 3.0% on first $25,000. CTPL: 0.5% employee (employer optional). No CT SDI separate from CTPL. Rippling handles CT DRS, CTDOL, and CTPL filings.</p>
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    Compliance Complexity

    High
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    Country Code

    US Dollar (USD)
  • Employer & Employee Contributions

    A side-by-side view of employer obligations and employee payroll deductions.

    Employer Contributions

    ContributionRateNotes
    FUTA6.0% (net 0.6%)After SUTA credit; first $7,000
    CT SUI (CTDOL)New employer 3.0%On first $25,000 of wages (2024)
    Social Security6.2%Up to $168,600 (2024)
    Medicare1.45%No wage base limit
    Workers’ CompensationVaries by risk classMandatory

    Employee Contributions

    ContributionRateNotes
    Federal Income TaxGraduated 10–37%Per W-4
    Social Security6.2%Up to $168,600 (2024)
    Medicare1.45% + 0.9% surtaxSurtax above $200K single
    CT State Income Tax2%–6.99%7-bracket progressive; top rate 6.99% on income above $500,000 single
    CTPL (employee)0.5% of wagesCapped at CT Social Security wage base; employer-only if employer chooses voluntary plan

    Tax, Leave & Termination

    Key employment information to help you understand your obligations and Employee rights

    Income Tax Summary

    Connecticut Income (Single)CT Rate
    Up to $10,0002%
    $10,001–$50,0004.5%
    $50,001–$100,0005.5%
    $100,001–$200,0006%
    $200,001–$250,0006.5%
    $250,001–$500,0006.9%
    Above $500,0006.99%

    CT withholding remitted to CT DRS. Annual CT-W3 reconciliation. CT uses its own withholding tables — collect CT-W4 from employees.

    Leave Entitlements

    • Connecticut Paid Leave (CTPL): Up to 12 weeks (14 for pregnancy-related) at 95% of wages up to 60× minimum wage. Employee-funded (0.5% contribution). Benefits available since January 2022.
    • CT Paid Sick Days Act: 40 hours paid sick leave per year (employers with 25+ employees — expanding to all employers by January 2026). 1 hour per 40 hours worked.
    • Federal FMLA: 12 weeks unpaid (50+ employees).

    Termination Rules

    Final Pay: Connecticut requires final pay on the next regularly scheduled payday. Accrued vacation: CT Wage Payment Act treats promised vacation as wages if the employer’s policy provides for payout — a clear written forfeiture policy is important.

    Year-End Filings

    • W-2: Issued by January 31. Rippling generates and e-files.
    • CT-W3: Annual CT withholding reconciliation.
    • CTDOL SUI Q4 return: January 31.
    • CTPL annual report.

    Benefits Overview

    • Workers’ Compensation: Mandatory for most employers.
    • CTPL: Employee-funded (0.5%); benefits available since January 2022 — up to 12 weeks paid leave.
    • CT Paid Sick Days: 40 hours/year (25+ employees now; expanding to all employers).
    • Market standard: Health, dental, vision; 401(k); PTO. Fairfield County competes with NYC compensation levels.

    FAQ

    How does Connecticut Paid Leave (CTPL) work?

    Connecticut Paid Leave (CTPL) provides up to 12 weeks of paid family or medical leave (14 weeks for pregnancy-related conditions) at 95% of wages up to 60× the minimum wage weekly benefit cap. Funded entirely by employee contributions (0.5% of wages, capped at the Social Security wage base). Benefits have been available since January 1, 2022. Rippling manages CTPL withholding and quarterly CT Paid Leave Authority remittances.

    What is Connecticut’s Paid Sick Days Act?

    Connecticut’s Paid Sick Days Act requires employers with 25+ employees to provide 40 hours of paid sick leave per year (accrual: 1 hour per 40 hours worked). Expanding to cover all employers by January 1, 2026 (under 2023 amendments). Sick leave can be used for the employee’s own illness, care for a family member, or domestic violence. Rippling tracks CT sick leave accrual.

    What is the Connecticut minimum wage?

    Connecticut’s minimum wage is $15.69/hour as of June 1, 2024, indexed to the Employment Cost Index (ECI). This is among the highest state minimums in the US. Tipped employees: $6.38/hour (service workers); $8.23/hour (hotel/restaurant service employees). Connecticut was the first state to tie its minimum wage to an inflation index.

    Does Connecticut have weekly pay requirements?

    Connecticut generally requires wages paid at least weekly for most employees. However, salaried employees paid bi-weekly or semi-monthly are permitted if the employer files a notification with CTDOL. Hourly workers typically must be paid weekly. Rippling configures pay frequency to meet Connecticut statutory requirements.

    Related Locations

    Explore nearby and comparable markets to understand how payroll requirements and compliance complexity differ.