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Version: 1.7.3

Connecticut Payroll Tax Compliance

Employers in Connecticut must meet three key payroll compliance obligations: state income tax withholding, unemployment insurance (UI), and new hire reporting.

Each requirement comes with its own forms, deadlines, and reporting rules established by state agencies. The sections below provide a clear overview of these obligations.

Connecticut Withholding Tax Requirements​

Connecticut employers are required to withhold state income tax from employee wages and file returns with the Connecticut Department of Revenue Services (DRS).

Forms required​

Form CT-941

  • Employer’s Quarterly Withholding Tax Return.
  • Filed quarterly to report Connecticut income tax withheld from employees.
  • Allows employers to report total withholding for the quarter, provide refund account details in case of overpayment and pay any tax due to the state

Form CT-WH

  • Used by employers to report and pay Connecticut income tax withheld.
  • Filed monthly, quarterly, or annually depending on the employer’s assigned filing frequency.

Form W-3 (Connecticut Reconciliation)

  • Filed annually to reconcile total state income tax withheld.
  • Submitted along with copies of Form W-2 to the Connecticut Department of Revenue Services.
Note:

TaxBandits API supports the automation of CT-941. See how it works

Connecticut Unemployment Insurance (UI) Requirements​

Employers are liable for Connecticut unemployment insurance taxes, administered by the Connecticut Department of Labor (DOL).

The state requires quarterly reporting using the following forms:

  • Form UC-2: Employer’s Quarterly Unemployment Tax Return used to report total wages and contributions due.
  • Form UC-5A: Employee wage detail report listing each employee’s wages.
  • Form UC-5B: Continuation sheet used when additional employee wage records are required.

These forms are filed quarterly on April 30, July 31, October 31, and January 31. Employers must file even if no wages were paid (zero wage reports).

Connecticut New Hire Reporting​

Employers must report all newly hired and rehired employees to the Connecticut New Hire Reporting Center. This reporting supports the enforcement of child support orders and the detection of fraud.

Employers must submit new hire reports within 20 days of the employee’s hire date.