Hiring your first employee changes your business. It also adds tax filings you did not have before.
Payroll in Connecticut means federal rules, state rules, and two Connecticut programs that catch many new employers off guard: unemployment tax and the CT Paid Leave contribution. This guide covers each one in plain language. The numbers and dates are current as of October 2026.
When you pay an employee, you generally handle:
Some of these come out of the employee’s paycheck. Others are your cost as the employer.
For 2026, Social Security tax is 6.2% from the employee and 6.2% from the employer, on wages up to $184,500. Medicare is 1.45% from each side with no wage cap. You also withhold an extra 0.9% Medicare tax on an employee’s wages above $200,000, and the employer does not match that extra amount. These rates come from IRS Publication 15.
Every new employee should complete a federal Form W-4 so you withhold the right amount of income tax.
Federal unemployment tax (FUTA) is 6.0% on the first $7,000 you pay each employee in a year. Employers who pay state unemployment tax on time usually receive a credit that brings the effective rate down to 0.6%.
Federal deposits follow a monthly or semiweekly schedule, based on how much tax you reported in a lookback period. You report quarterly on Form 941, due April 30, July 31, October 31, and January 31.
The 2027 Social Security wage base had not been published when this post was written. The Social Security Administration releases it each fall.
Connecticut wants its own withholding from your employees’ wages. To stay current, you:
Monthly depositors pay by the 15th of the following month. The DRS withholding page lists the full rules.
CT Paid Leave is separate from income tax, and it is easy to miss. You withhold 0.5% of each employee’s wages, up to the Social Security wage base ($184,500 in 2026), and send it to the CT Paid Leave Authority through its online portal.
Remittance runs by calendar quarter. The Authority waives penalties and interest if payment arrives by the last day of the month after the quarter ends, which means April 30, July 31, October 31, and January 31. Late payments accrue interest of 1% per month plus a penalty.
The Authority kept the rate at 0.5% for 2026. Check its website each fall for the next year’s rate.
Connecticut unemployment tax is paid by the employer, not withheld from the employee. You register with the Connecticut Department of Labor (CT DOL) and file quarterly through its online system.
For 2026, the taxable wage base is $27,000 per employee, up from $26,100. New employers start at a 1.9% rate. Experienced employers fall between 1.1% and 9.9% based on their history with the state’s unemployment fund, with a temporary reduction factor lowering the maximum charged rate for 2026. See the CT DOL rate notice.
Quarterly returns and payments are due April 30, July 31, October 31, and January 31. If a due date lands on a weekend or holiday, it moves to the next business day. Late filings carry a $25 fee, plus interest of 1% per month on unpaid tax.
CT DOL had not published the 2027 wage base when this post was written.
Two Connecticut changes land on the same day:
Update your payroll settings and your written policies before your first January payroll. Employers must also track hours worked and sick leave accrued for every employee.
January 31, 2027 falls on a Sunday. The federal rule moves a weekend deadline to the next business day, which makes it Monday, February 1. Confirm the exact date for each Connecticut filing.
Most payroll problems start with messy books. Clean records make every filing easier.
Payroll mistakes cost real money. When you work with JUMA, you get:
Looking for the right firm? Read our guide on how to choose an accountant in Waterbury.
JUMA works with small business owners in Waterbury and nearby towns, including Middlebury, Naugatuck, Wolcott, Cheshire, Prospect, and Watertown. Connecticut payroll rules apply the same way wherever your business operates in the state.
Payroll should run quietly in the background so you can focus on your customers. With clean books and the right filing calendar, it does.
Contact JUMA to talk through your payroll setup, or learn more about our bookkeeping and payroll services.
Ready to simplify your payroll and gain confidence in your business finances? JUMA serves Waterbury, Naugatuck, Middlebury, Wolcott, Cheshire, Prospect, Watertown, and the surrounding Connecticut communities.
Address: 133 Crest St, Waterbury, CT 06708
Phone: (203) 951-0955
Website: https://www.jumaaccounting.com
This post is general information, not legal or tax advice. Rules change and every business is different. Talk with a qualified professional before you act on anything here.
