Connecticut Payroll Tax and Registration Guide

Employers in the Constitution State, here’s what you need to know about payroll taxes and business registration in Connecticut. Business registration and payroll taxes can be complicated. In order to get the best advice you can, enlist the help of a lawyer or a Certified Public Accountant in the State of Delaware to guide you through the process.

Whether you’re a brand-new small business or branching out into Connecticut for the first time, here’s how to stay compliant with payroll tax and business registration laws in the state.

Connecticut tax account registration information

Before you can operate a business in Connecticut, the first thing you need to do is register your business. This is the first step to being able to pay the necessary unemployment taxes, payroll taxes, and other withholdings in Connecticut.

Businesses must register online using the myconneCT registration application (REG-1). myconneCT is the Connecticut Department of Revenue Services’ online portal. Businesses must also register with the Connecticut Department of Labor in order to pay unemployment and workers compensation taxes.

Required payroll documentation for Connecticut

The Connecticut State Department of Revenue Services is the state department that operates myconneCT. This is what businesses in the state use to file tax returns and make payments to the state.

Withholding information

State unemployment taxes range from 1.7% to 6.6%. In 2023, new employers will pay 2.8%. Employers must also withhold 0.5% of each employee’s taxable wages for the state’s paid family and medical leave initiative.

Power of Attorney rules for Connecticut Payroll Tax and Registration

Connecticut has power of attorney laws that allow an agent to represent your business when it comes to paying revenue taxes to the Connecticut Department of Revenue Services. This is done through form LGL-001.

Local income taxes imposed for Connecticut

Connecticut’s state income taxes come in the form of a progressive income tax. This progressive income tax ranges from 3% to 6.99%. Connecticut does not have local taxes, so employers will only be responsible for state taxes.

Connecticut resources for Payroll Tax and Registration Laws

The Connecticut State Department of Revenue Services and the Connecticut Department of Labor are the resources you’ll need for payroll tax and business registration regulations in the State of Connecticut. These entities list specific tax rate and wage regulation details. If you have questions about payroll taxes or business registrations in Connecticut, connect with these departments to get the guidance you need.

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