Connecticut payroll tax guide

Your Ultimate Guide to US Payroll in Connecticut

Shannon Hodgen
Written by Shannon Hodgen
August 4, 2023
Contents
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Key takeaways

  1. Connecticut employers must manage unemployment insurance, personal income tax, and workers’ compensation to comply with state payroll tax regulations.
  2. Understanding Connecticut’s state payroll and unemployment taxes is crucial for business owners to protect employees and ensure smooth payroll operations.
  3. Deel offers a comprehensive solution for US and international payroll management, simplifying the complex process of payroll compliance for businesses.

Employers have to navigate a variety of regulations and requirements to ensure proper payroll withholding in each US state. This guide serves as an introduction to what employers need to pay and withhold from payroll in Connecticut, including unemployment insurance, personal income tax, and workers’ compensation. 

Paying unemployment insurance (UI)

Unemployment insurance is a vital safety net for workers who find themselves unemployed through no fault of their own. As an employer, it is your responsibility to fund this program. Through the national program administered by the US Department of Labor, temporary payments are provided to eligible unemployed individuals.

Connecticut offers an online portal for employers to manage unemployment insurance contributions efficiently. By accessing the online portal, you can process your UI payments seamlessly. For further guidance and resources on paying unemployment insurance in Connecticut, refer to the Connecticut Department of Labor.

Withholding personal income tax (PIT) from your Connecticut employees

Personal income tax, also known as individual income tax or state income tax, is another key component of Connecticut state payroll taxes. This tax is levied on the income of Connecticut residents and is deducted directly from the employee’s wages by the employer. As the employer, you are responsible for withholding and remitting the correct amount to the state.

Connecticut’s Department of Revenue Services offers an online portal to facilitate the payment of withheld personal income tax. Utilizing this portal will ensure a smooth and compliant process. For more detailed information on managing withholding tax in Connecticut, refer to the Connecticut Department of Revenue Services resources.

Paying workers’ compensation (WC) in Connecticut

Workers' compensation is an essential insurance coverage for employees, providing protection in case of work-related injuries or illnesses. As a business owner in Connecticut, you are required to provide this insurance to your employees, even if you have just one worker.

To ensure you have the appropriate workers’ compensation coverage, employers should obtain insurance from a qualified commercial carrier within the state. The Connecticut Workers’ Compensation Commission offers valuable information on finding a qualified commercial carrier that meets the state’s worker’s compensation insurance regulations.

Simplify US payroll tax compliance with Deel

While this guide provides essential information on Connecticut payroll taxes, payroll compliance and state requirements extend beyond what is covered above. To streamline the process and ensure full compliance, companies can turn to Deel. 

Deel offers a comprehensive solution for managing US and international payroll, including payments, taxes, worker classification, and more. Speak with an expert today to see how you can streamline your US payroll processes and ensure compliance with state regulations.

Disclaimer: This article is provided for general informational purposes and should not be treated as legal or tax advice. Consult a professional before proceeding.

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