Make employment in Connecticut easy. Let us handle payroll, benefits, taxes, compliance, and even stock options for your team in Connecticut, all in one easy-to-use platform.
Known for its charming, picturesque coastal towns and world-famous universities (such as Yale), Connecticut is one the country’s wealthiest states.
With a thriving financial sector and a vibrant arts scene, it’s also a highly attractive location for employers seeking top talent and employees looking to settle.
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In Connecticut, workers’ rights are protected by numerous employment and labor laws, at both the state and federal level. As a result, employees enjoy protection from discrimination based on age, religion, sexual orientation, gender, and race.
Here are the key things you need to know about hiring in Connecticut.
Work and overtime laws in Connecticut are governed by the Office of State Ethics and the Connecticut Judicial Branch.
In Connecticut, full-time employment is generally considered to be between 35 and 40 hours per week.
Under the federal Fair Labor Standards Act, non-exempt employees are entitled to overtime pay of 1.5x their regular pay rate if they work more than 40 hours in a week.
Employees are generally (but not always) exempt from overtime if they:
Earn more than the specified state or federal exemption threshold
Perform a role with duties that are
Work in a certified or licensed profession, such as law, accounting, architecture, or engineering
In Connecticut, the salary threshold for exemption is currently $684 per week, which is the federal minimum.
Note that the federal salary threshold for exemption is currently being reviewed in the US.
The minimum state wage for private sector employees is currently $15.69 per hour.
We can help you get your new employee started in Connecticut fast. Note that our minimum onboarding time (MOT) is dependent upon registration with the local authorities, and begins after the employee has submitted all the required information on the Remote platform.
For non-citizens of the US, a work eligibility assessment may be required, and can add three extra days to the onboarding time. If a follow-up is needed, there may be additional delays.
Please note that payroll cut-off dates can impact the actual first day of employment. Remote’s payroll cut-off date is the 10th of the month, unless otherwise specified.
Under state law, employees must be paid weekly, although employers can pay less frequently if the state’s labor commissioner approves it.
For Remote customers, employee payments are made twice per month in equal installments, payable in arrears. The first payment is made on the 15th of the month and the second payment is made on the final day of the month. If relevant, bonus payments, commissions, and expense reimbursements are included in the second payment of the cycle.
Remote can help you craft a competitive benefits package to attract and retain the best global talent. Our benefits experts understand the trends, requirements, and expectations of the Connecticut labor market, allowing your employees to feel appreciated and thrive.
Our benefits packages in Connecticut usually include some or all of the following:
Under the federal Affordable Care Act, organizations with a headcount of 50 or more must offer statutory health insurance to their full-time employees.
Many employers also offer some level of supplemental health insurance. While this can lead to a relative rise in employment costs, it’s an essential benefit that ensures your people have access to routine care and are covered in the event of an emergency.
Because Remote is the employer of record (EOR), it’s important for us to offer the same core benefits to all employees to ensure fair and non-discriminatory hiring practices. This protects both your business and ours.
Note that we do not add a markup on any benefits premiums or administration costs.
Yes. Organizations must offer a retirement plan to their employees. You can either choose your own qualified savings plan, or enroll your employees into the state-sponsored MyCTSavings Program.
Note that this only applies if your business:
Connecticut, like many other countries, treats self-employed individuals or contractors and full-time employees differently. Misclassification of contractors in Connecticut may lead to fines and penalties for the offending company.
Employment taxes and statutory fees affect both your payroll and your employees' paychecks in Connecticut. Note that your employees may be liable for additional local taxes.
Employer taxes
0%
Federal unemployment insurance tax (FUTA) (charged on the first $7,000 an employee earns per year)
0.0% to 6.6%
State unemployment insurance tax (SUTA)
0.0%
FICA (Social security)
0.00%
FICA (Medicare)
Employee taxes
0% to 37%
Federal income tax
0% to 6.99%
State income tax
0.0%
FICA (Social security)
0.00%
FICA (Medicare)
In Connecticut, there is no state or federal law that requires employers to provide paid or unpaid vacation leave to their employees, although many organizations do.
Under state law, employers with 50 or more employees must provide 1 hour of paid leave for every 40 hours worked (up to 40 hours per year). Can an employer deny sick time in Connecticut? Under the federal Family and Medical Leave Act (FMLA), eligible employees are entitled to up to 12 weeks of unpaid sick leave per year, provided they: - Have worked for the same employer for at least 12 months - Work in a location where at least 50 people are employed by the company within a 75-mile radius
Employees are entitled to up to 12 weeks of unpaid maternity or paternity leave under the FMLA. This is supported by several state laws, which guarantee up to 16 weeks’ unpaid parental leave for employees, provided: - The employer has 75 or more employees - The employee has been employed for at least 12 months - The employee has worked at least 1,000 hours during that time Under state law, eligible employees may also be entitled to up to 12 weeks’ paid parental leave, provided they meet a minimum earnings threshold and have been employed for at least three months.
Employers are not legally required to provide bereavement leave to their employees, although most organizations offer unpaid leave.
Like nearly all US states, Connecticut is an “at-will” state. This means both employers and employees can end the employment relationship without reason, provided it is legal.
Remote’s legal experts can help you navigate terminations to ensure employees are only let go fairly, negating any potential legal complications.
Employers and employees are not required to provide notice of termination, unless otherwise stated in the employment contract.
Despite this, it's usually customary for employees to provide two weeks' notice when leaving an organization.
Employers are not legally required to provide severance pay (unless it is stipulated in the employee's contract or in the company policy).
Employers are also not required to pay any accrued but unused vacation time, unless stipulated in the employment agreement.
There is no requirement to provide a probation period for employees, although many companies implement internal probation policies. These policies typically involve a formal performance evaluation after a specified period, such as three or six months.
Connecticut has a diverse economy fueled by industries such as finance, insurance, healthcare, and manufacturing. With some of the highest labor costs in the country, Connecticut has strict payroll regulations, including a high minimum wage, paid leave mandates, and complex tax requirements. Employers in Connecticut must carefully navigate these regulations to ensure compliance and avoid penalties.
Employers in Connecticut must follow both federal and state payroll regulations regarding wages, taxes, and benefits. Below is a breakdown of key payroll components:
Minimum Wage: As of 2024, Connecticut’s minimum wage is $15.69 per hour, with annual increases tied to the Employment Cost Index.
Overtime Rules:
Connecticut has a progressive income tax system, with rates ranging from 3% to 6.99%, depending on income levels.
Employers must withhold state income tax and remit it to the Connecticut Department of Revenue Services (DRS).
Employers must contribute to Connecticut’s Unemployment Insurance (UI) program, managed by the Connecticut Department of Labor (DOL).
Hiring contractors in Connecticut can be a strategic and cost-effective way for businesses to complete projects without the obligations of hiring full-time employees. Whether you are engaging independent contractors for specialized services or bringing in subcontractors for labor-intensive projects, understanding Connecticut’s laws and federal regulations is essential.
Remote helps businesses stay compliant when hiring contractors globally with these key features:
Global compliance support: Ensures adherence to labor laws in 200+ countries with localized contracts and proper documentation.
Misclassification protection : Includes built-in compliance checks and seamless contractor-to-employee conversion.
Centralized documentation : Maintains essential records for audits and automates tax filings (e.g., 1099s for U.S. contractors).
Legal expertise: Provides guidance on complex local labor laws, simplifying international hiring.
Remote’s streamlined approach minimizes compliance risks and simplifies contractor management for businesses.
Remote simplifies contractor payments with:
Our employer of record (EOR) service enables you to hire, manage, and pay top talent in Connecticut with speed and simplicity.
Remote’s EOR allows your company to legally hire employees in any country or US state — including Connecticut — wherever your business is based, without having to set up a local legal entity.
On paper, Remote is the official employer, and we handle compliance, payroll, benefits (including equity), and other HR processes — but you maintain full control over the hire’s day-to-day management and work responsibilities. Learn more.
An EOR may be ideal if your company:
Needs to hire employees in Connecticut but doesn’t want to establish a legal entity there
Is testing local markets before committing to a full business expansion
Wants to ensure full compliance with federal, state, and local employment laws and tax requirements
Needs a fast, cost-effective way to onboard employees in the state
Needs a temporary hiring solution before establishing a legal entity
Connecticut offers strategic access to major northeast markets, a highly educated workforce, and strengths in finance, healthcare, and advanced manufacturing. Whether you’re a startup expanding across New England or an SMB ready to build a distributed team, managing HR, payroll, and compliance across state lines can quickly become overwhelming. That’s where a professional employer organization (PEO) can help.
A professional employer organization (PEO) is a third-party provider that helps businesses handle key HR functions. These typically include payroll, benefits administration, tax filings, and employment law compliance. With a PEO, your business enters into a co-employment relationship, meaning the PEO takes on the administrative and legal tasks related to employment — while you retain full control over day-to-day management of your team.
For small to midsize companies, a PEO can provide enterprise-grade HR services without the cost or complexity of building an in-house department.
As mentioned, a PEO operates through a co-employment model, which requires your company to be registered and operating in Connecticut.
In contrast, an employer of record (EOR) acts as the legal employer on your behalf. EORs are typically used for hiring in states (or countries) where your business doesn’t yet have a legal presence. If you’re hiring your first employee in Connecticut and don’t yet have an entity or tax setup, an EOR may be a better fit initially.
Working with a PEO in Connecticut offers several advantages, such as:
$29
per employee/month
Powerful, transparent international payroll
Simple self-service platform
Personalized support from dedicated specialists
Adhere to local payroll regulations in every country
Integrated benefits management
Includes HR Core as standard
$29
per contractor/month
Only pay for contractors you actively work with
Work with international contractors
Create, edit, and sign tailored, localized contracts
Approve contractor invoices with one click or auto-pay
Transparent payments with complete visibility
Includes HR Core as standard
$699
per employee/month
Hire without opening a local entity in 90+ countries
Onboarding with a dedicated specialist
Local payroll paid on time, every time
Compliance protections built-in
Competitive, flexible and localized benefits
Dedicated in-house experts for local support
Includes HR Essentials as standard
Employees must report for jury duty if summoned (unless exempt). Jurors are typically “on call” for two weeks. Do employers have to pay for jury duty in Connecticut? Private sector employers must provide full pay for the first five days of the duty. They must also provide unpaid leave for the remainder of the duty, and cannot penalize or terminate the employee.
Under federal law, employers must grant unpaid leave to employees who are members of the military or the National Guard for military duty or training. These employees have the right to take time off for their military obligations, and employers are prohibited from discriminating against them based on their military service.
UI tax rates vary based on an employer’s experience rating and range from 1.7% to 6.6%.
Connecticut mandates Paid Family and Medical Leave (PFMLA), funded through a 0.5% employee payroll tax on wages.
PFMLA provides up to 12 weeks of paid leave for qualifying employees needing time off for medical or family reasons.
Connecticut law requires all employers to carry workers’ compensation insurance to cover medical expenses and lost wages for employees injured on the job.
Employers must register for a Connecticut Withholding Tax Account Number with the Connecticut DRS.
State withholding tax returns must be filed monthly, quarterly, or annually, depending on employer classification.
UI tax reports must be submitted quarterly to the Connecticut DOL.
Payroll tax payments can be made electronically through myconneCT, the state’s online tax portal.
State Minimum Wage Adjustments: Connecticut’s minimum wage increases annually based on economic conditions.
Final Paycheck Rules:
New Hire Reporting: Employers must report new hires to the Connecticut State Directory of New Hires within 20 days.
Paid Sick Leave:
Payroll Recordkeeping: Employers must maintain payroll records for at least four years to comply with state and federal laws.
Right-to-Work Status: Connecticut is not a right-to-work state, meaning employees can be required to join or pay fees to a union if applicable.
Managing payroll in Connecticut requires careful attention to state-specific regulations, including minimum wage laws, paid family leave, and payroll tax requirements. Employers must stay informed about tax rates, wage laws, and reporting deadlines to ensure smooth payroll processing and avoid penalties.
For businesses looking to simplify payroll management, Remote’s payroll solutions provide automated payroll processing, tax filing, and compliance support tailored to Connecticut’s regulations. With Remote, employers can focus on business growth while ensuring accurate and hassle-free payroll operations.
To see just how easy global payroll can be, book a demo today.
Global coverage : Payments in 200+ countries, multiple payment methods, and currency flexibility.
Cost and compliance : Fair price guarantee (pay only for active contractors), built-in compliance with regional regulations, and localized contracts.
Learn more about how Remote simplifies contractor management in Connecticut —get started for free today.
Key benefits of hiring through our EOR in Connecticut include:
Faster market entry . You can hire talent quickly, without having to wait months to establish a local entity.
Full compliance with local employment laws . Avoid the legal risks associated with non-compliance and misclassification.
Simplified payroll management . We automate payroll tax calculations and ensure you are fully compliant with all federal, state, and local withholding obligations, even when laws change.
Lower costs. Setting up a legal entity in Connecticut can be costly and time-consuming. An EOR eliminates the need for entity registration, reducing overhead expenses.
Fewer resources required. With HR, payroll, and compliance managed by the EOR, your company can concentrate on scaling operations and assigning your resources elsewhere.
It’s also crucial to note that, at Remote, we own all our own legal entities. As a result, we don’t need to rely on third parties, which can incur delays and extra costs, and result in a negative employee experience. All our EOR services — including the dedicated support of our local specialists — are provided in-house.
To learn more — and to see our EOR platform in action — book a demo with one of our friendly experts today.
Compliance with state employment laws and tax regulations
Access to affordable, competitive employee benefits packages
Reduced administrative burden around payroll and HR documentation
Simplified onboarding, performance tracking, and employee offboarding
Minimized risk around misclassification, workplace policies, and employee relations
Connecticut employers must also navigate unique state laws, including workers’ compensation requirements and specific tax obligations. Remote’s PEO helps you stay compliant while keeping your HR operations lean and efficient.
To partner with a PEO in Connecticut, your business must have a registered legal entity in the state. Once that’s in place, our PEO service takes on your HR administration tasks such as running payroll, administering benefits, and filing local and federal taxes.
Remote’s PEO services integrate seamlessly into your operations, whether you're hiring your fifth employee or your 50th. You maintain full control over how your team works while we handle the operational complexities behind the scenes.
If your company is legally established in Connecticut and you're looking for a scalable way to manage HR, a PEO is an ideal solution. You’ll gain access to expert support, reduce your compliance risk, and free up time to focus on growth.
If you're just entering Connecticut and don’t yet have a legal entity, consider starting with an EOR and transitioning to a PEO as you scale.
Remote makes it easy to manage HR, payroll, and compliance across all 50 states. Learn more about our PEO services and how we can support your team’s growth in Connecticut.