Connecticut Salary Paycheck Calculator
Connecticut may be small in size, but that doesn’t mean its payroll taxes and paycheck rules are small.
Processing payroll in Connecticut doesn’t need to be complicated. We’re here to help you with the knowledge you need to calculate your employees’ paychecks and your payroll taxes correctly. We’ve answered the most frequently asked Connecticut payroll tax questions below. Information you need to calculate your Connecticut payroll taxes quickly will be at your fingertips—giving you more time to focus on your business.
Connecticut payroll taxes
Does Connecticut have a personal income tax?
Answer: Yes. Connecticut’s personal income tax rates are between 3.00% and 6.99%.
With different tax rates, how do I know how much to withhold from my employees’ pay?
Answer: The withholding amount is based on information you’ll get from your employees.
When your employees begin working for you, have them fill out Form CT-W4 Employee’s Withholding Certificate. Information like tax filing status and taxable income that you’ll get from this form will help you calculate the amount of tax to take out.
But to make it even easier, payroll software will make withholding calculations automatically— saving you time and money. If your employee doesn’t provide a Form CT-W4, withhold tax as if the employee is single and at the highest rate of 6.99%.
Do my employees need to fill out a Form CT-W4 each year?
Answer: No. A new Form CT-W4 is only required when their tax situation changes, increasing or decreasing the amount of tax they owe. Employees will need to provide a new form to you within ten days of the change so you can quickly adjust the amount withheld.
When do I need to pay the Connecticut withholding tax?
Answer: You will pay weekly, monthly, or quarterly depending on how much tax you withheld from your employees’ earnings. You must file and pay electronically.
Besides paying withholding tax, do I need to file payroll tax returns?
Answer: Yes. When you make a payment, you’ll complete Form CT-WH, Connecticut Withholding Tax Payment, electronically.
Regardless of how frequently they pay, all employers will need to file a quarterly reconciliation with Form CT-941, Connecticut Quarterly Reconciliation of Withholding, which is due by the last day of the month following the quarter.
Does Connecticut have an unemployment tax?
Answer: Yes. Employers must pay Connecticut state unemployment tax on the initial $15,000 of wages earned by employees each year. Rates range from 1.9% to 6.8%, but your actual tax rate will depend on your claims history.
Like with the withholding tax, you will need to file a report and pay the tax. You’ll file and pay unemployment tax in Connecticut four times a year. Payment and reports are due within 30 days after the quarter ends. You must electronically file both the payment and the report.
What is the minimum salary threshold in Connecticut?
Answer: Connecticut does not have a state salary threshold so the federal threshold is used. The federal salary threshold is now $684 per week (equivalent to $35,568 per year for a full-year worker). The Department of Labor permits employers to count some bonuses, commissions, and other incentive payments toward meeting the standard salary level (up to 10%). Employees who earn at least $107,432 per year may qualify as “highly compensated.” See this Department of Labor fact sheet for details.
When do employers need to have Workers’ Compensation insurance in Connecticut?
If you determine that your company is required to purchase Workers’ Compensation insurance in your state, learn how to sign up for this insurance with Gusto.
Sometimes, companies get a request for a workers’ comp audit—head to this article and click the workers’ comp audit reports dropdown for more information.
What else do I need to know about Connecticut paycheck rules?
Answer: Keep in mind the following paycheck laws.
New hires – You will need to report new hires or rehired employees to the state within 20 days.
Final paychecks – Pay employees who quit by the next regular payday. If you fire or lay an employee off, the final paycheck is due the next business day.
Paid sick leave – If you have 50 or more employees, you’ll need to provide each employee at least one hour of paid sick leave for every 40 hours worked.
Jury duty – Full-time employees called for jury duty need to be paid their regular wages for the first five days of jury service.
Federal payroll taxes
How does FICA tax work?
Answer: Federal Insurance Contribution Act (FICA) tax consists of only two taxes: Medicare and Social Security. Both the employee and employer pay FICA taxes.
|Medicare tax||1.45% on each employee’s yearly wages|
|Social Security tax||6.2% on the initial $147,000 of each employee’s wages in 2022|
How do I withhold federal income tax from my employees’ pay?
Answer: Unless an employee is exempt from federal income tax, you’ll need to take this tax out of their paycheck. They will inform you whether they are exempt when they provide you with a completed Form W-4.
Your employees should complete Form W-4 before they begin working for you. The information on Form W-4 will determine how much tax to withhold. Generally, your employee’s tax filing status and the number of dependents determines how much tax to take out.
You don’t need to send the forms to the IRS—keep the W-4 documents with your payroll records.
Are there other federal payroll taxes I need to pay?
Answer: You’ll need to pay federal unemployment tax.
Like the state, the federal government also has an unemployment tax. It’s called FUTA and it’s an annual tax employers pay on the first $7,000 of each employee’s wages. The FUTA rate for 2022 is 6%, but most employers only have to pay 0.6% each year.
Who pays the Additional Medicare tax?
Some employees may need to pay the Additional Medicare tax. It depends on their tax filing status and their taxable income. But as an employer, you’ll need to withhold this tax from any employee earning more than $200,000 per year. The withholding rate is 0.9% on the excess wages.
How do I pay federal payroll taxes to the IRS?
Answer: The Internal Revenue Service requires you to pay these taxes annually, quarterly, monthly, or semi-weekly depending on how much tax you owe.
FICA, federal income tax, and Additional Medicare tax are paid most frequently, either monthly or semi-weekly. Annual or quarterly payments are not an option. Each quarter you will provide a summary on Form 941, Employer’s Quarterly Federal Tax Return.
Federal unemployment tax is usually paid annually using Form 940, Employer’s Annual Federal Unemployment Tax Return. But quarterly payments are required for employers who owe $500 or more.
Hopefully, you’re feeling good about processing your Connecticut payroll. If you still need help, call on a qualified professional to help you.