How to Register as a CT Employer

Last reviewed: July 2026

Connecticut splits employer registration between two agencies that don't talk to each other: DRS handles income tax withholding, and CTDOL handles unemployment insurance. Missing either one before payday creates a mess that's harder to untangle than it is to avoid. Here's the order that works.

Registration Overview

Before your first Connecticut payroll, make sure you have:

• ☑ Federal Employer Identification Number (EIN)
• ☑ Connecticut withholding account (DRS)
• ☑ Connecticut SUI account (CTDOL)
• ☑ Workers' compensation insurance
• ☑ New hire reporting set up

Step 1: Get Your Federal EIN

Apply for your EIN free at IRS.gov/EIN. Online applicants during business hours get the number the same session, and you'll need it for both registrations below.

Step 2: Register With DRS

Visit the Department of Revenue Services portal to register for a withholding account. This is what lets you legally withhold and remit Connecticut state income tax.

From the Payroll Desk

If an employee claims Withholding Code E or more than 14 reductions on their CT-W4, send DRS a copy directly. It's an easy step to forget during onboarding.

Step 3: Register for SUI

Register with CTDOL for a State Unemployment Insurance account, separate from your DRS registration.

• New employer rate: 1.9% for 2026.
• Taxable wage base: $27,000 per employee for 2026.
• Fund solvency tax: an additional 1.0% on top of your charged rate.

See our Connecticut SUI Rates 2026 guide for the full experience-rating picture.

Step 4: Workers’ Compensation Insurance

Connecticut requires workers' compensation coverage starting with your first employee, with almost no exceptions for private employers. Purchase a policy from a private carrier, and get quotes from more than one insurer since pricing depends heavily on your industry classification.

Step 5: New Hire Reporting

Report every new hire within 20 days of their start date to the Connecticut Department of Labor New Hire Registry, typically by sending a copy of the employee's CT-W4. Larger employers filing by FTP have a shorter 14-day window.

Frequently Asked Questions

Where do I register a new business as an employer in Connecticut?

Register for withholding with the Connecticut Department of Revenue Services (DRS) at portal.ct.gov/drs, and register for unemployment insurance with the Connecticut Department of Labor (CTDOL) at portal.ct.gov/dol. Both accounts are required before your first payroll.

How long does Connecticut employer registration take?

A federal EIN is issued instantly online. DRS and CTDOL registrations typically take a few business days to process, so start both as soon as you know you will be hiring.

What SUI rate will a new Connecticut employer pay?

New employers pay 1.9% for 2026, applied to the first $27,000 of each employee's wages, plus a 1.0% fund solvency tax on top of the charged rate.

Once your DRS and CTDOL accounts are set up, Gusto can handle withholding calculations, quarterly SUI filings, and year-end W-2s using the account numbers you registered.