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Taxes
Connecticut Payroll Taxes 2026: Complete Overview for Employers
Connecticut graduated 2%–6.99% income tax, SUI on $25,000, and all employer obligations.
Practical, accurate resources for Connecticut small business owners — covering payroll taxes, labor laws, and compliance. Written by the payroll professionals at Pacific Data Services.
Connecticut graduated 2%–6.99% income tax, SUI on $25,000, and all employer obligations.
How to register with Connecticut Department of Revenue Services and Connecticut Department of Labor as a new Connecticut employer.
New employer rate 3.0%, experienced range 1.90%–6.80%, wage base $25,000.
Connecticut minimum wage is $16.35/hr. Connecticut’s minimum wage is $16.35/hr. Tipped employees in the hotel/restaurant industry may be paid $6.38/hr.
Weekly pay required. Final pay: Terminated employees receive final wages by the next business day; those who resign by the next regular payday..
FICA, Social Security, Medicare, FUTA, federal withholding — the complete breakdown.
EIN, state registration, withholding setup, new hire reporting — complete checklist.
IRS classification rules, Connecticut-specific considerations, and misclassification penalties.
IRS lookback period, deposit thresholds, next-day rule, EFTPS, and penalties.
Federal and Connecticut new hire reporting requirements, deadlines, and penalties.
FLSA, IRS, and Connecticut recordkeeping — what to keep, how long, and why.
ALE threshold, penalties, 1094-C/1095-C filing, small business exemption.
Misclassifying workers, wrong withholding, missed deposits — mistakes that add up fast.
Gusto vs Paychex vs QuickBooks vs ADP for Connecticut small businesses.
Federal OT after 40 hrs/week, Connecticut overtime rules, exemptions, salary thresholds.