Connecticut employer tax guide
About Connecticut employer tax information
With Square, you can run payroll, pay your taxes and stay ahead of the compliance to focus on running your business. This guide is intended for your state taxes only. It’s important to note that laws vary by jurisdiction, and this guide does not attempt to address all jurisdictions or federal taxes — for example, counties or cities often have requirements that differ from federal and state law.
Before you begin
To sign up for Square Payroll in Connecticut, you must be registered with the Connecticut Department of Revenue Services and the Connecticut Department of Labor. Review the tax ID format associated with each agency.
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Connecticut Department of Revenue Services
Connecticut tax registration number (typically 9 digits with a 3-digit location code)
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Connecticut Department of Labor
Connecticut Department of Labor employer registration number (7 digits)
Your Connecticut Tax Registration Number may be either 10 or 11 digits.
The Connecticut Department of Labor typically requires employers to file and pay unemployment taxes starting in the quarter that wages are first paid. If you become liable for unemployment taxes and register an account in a later quarter, it may be necessary to file these taxes retroactively. Visit the Connecticut website or contact the CT Department of Labor directly to determine your requirements and ensure any outstanding tax filings are completed promptly to avoid penalties.
Connecticut payroll tax details
Square Payroll processes the following per the frequency for the listed state agencies. Square Payroll remits CT withholding tax payments at the more frequent semi-weekly deposit schedule.
Connecticut Department of Revenue Services
Withholding tax payment: filed per pay run
Quarterly Reconciliation of Withholding (CT-941): filed quarterly
Annual Reconciliation of Withholding (CT-W3): filed annually
Annual Wage and Tax Statements (CT-W2): filed annually
Connecticut Department of Labor
Employer Contribution Return and Employee Quarterly Earnings Report (UC-5A / UC-2): filed quarterly
Unemployment Insurance Tax Payment: filed quarterly
New Hire Report: filed per each new employee
Make Connecticut state payroll tax payments
There are a few options for making withholding tax payments:
To pay online:
- Go to the Connecticut Taxpayer Service Center on the DRS website.
- You will need your Connecticut Tax Registration Number (CT REG) to log into the Connecticut Taxpayer Service Center.
To pay by phone for a payment-only transaction:
- Use the Business Telefile System to pay withholding tax by calling 855-665-9471 (toll-free from outside the Greater Groton calling area) or 860-449-1011 (from anywhere) to file a business tax return or to make a payment.
- Enter your Connecticut Tax Registration Number.
- If you are using the Telefile system for the first time, use your preassigned Personal Identification Number (PIN) or to enter information from a previously filed return. You will be told to create your own five to eight digit password.
- On the Telefile main menu, choose Option 7 to make an EFT payment.
- When told, enter the five-digit tax code of the tax you want to pay. The code for Payroll Withholding is 01100.
- Enter the tax period ending date for the payment you are making. Enter two digits for the month and four digits for the year. For example, May 2017 would be 052017.
- Enter the dollar amount of the payment. Use the star (*) key on your touch-tone pad to separate dollars and cents.
- After you complete your payment, Telefile will give you a confirmation number. Once you receive this number, you have successfully made your payment. Make a note of this number for your records.
You can also pay by mail. Do not use this option unless you have been granted a waiver from DRS.
To pay by mail:
- Make your check or money order payable to the “Commissioner of Revenue Services” and mail it to the DRS at:
Department of Revenue Services Revenue Accounting
PO Box 5088
Hartford, CT 06102-5088 - To ensure proper posting of your payment, write your Connecticut Tax Registration Number and the applicable quarter and year of the payment on the front of your check or money order.
You will need to create an unemployment insurance tax account with the Connecticut Department of Labor (DOL). Once registered, you’ll be issued a Connecticut DOL registration number. There is no fee to register your business with the DOL for unemployment insurance tax purposes (other types of tax registration can incur a fee).
- To pay online, go to the Connecticut Employer Registration System on the DOL website.
- To pay by mail, submit a paper application using Form UC-1A, Employer Status Report for Unemployment Compensation.
You must make payments electronically unless you’ve been granted a waiver by the DOL. To make electronic payments, use the Connecticut Internet Tax and Wage System. You can make payments via Automated Clearing House (ACH) or Electronic Funds Transfer (EFT).
Make payroll withholding tax filings
Quarterly withholding tax returns are due by the last day of the month following the end of the calendar quarter (for example, due on April 30 for the first quarter). The returns reconcile the tax paid for the quarter with the tax withheld for the quarter.
- To file online, use the Taxpayer Services Center (TSC) to file. Payments can be made online or by phone using the Business Telefile System.
- To file by mail, download Form CT-941, and mail return with any tax payment due to the address indicated on the form. Do not file on paper unless you have been granted a waiver by Connecticut Department of Revenue Services
You must file a quarterly return even if you are on an annual payment schedule for federal taxes and even if no tax is due for the quarter.
For questions about withholding tax payments, contact the Connecticut Department of Revenue Services at 860-297-5962 or email them at drs@po.state.ct.us.
Annual reconciliation returns are due by January 31 for the preceding calendar year. You must file an annual reconciliation that summarizes the employee taxes you’ve withheld during the year. The annual reconciliation is due in addition to providing each of your employees with a federal Form W-2 summarizing the employee’s withholding for the year. Include copies of the W-2s sent to all of your employees working in Connecticut.
To file online, go to the Taxpayer Services Center (TSC).
Do not file by mail unless you have been granted a waiver by the Connecticut Department of Revenue Services. If a waiver is granted, the returns must be submitted on a CD rather than paper.
For questions about withholding tax payments, contact the Connecticut Department of Revenue Services at 860-297-5962 or email them drs@po.state.ct.us.
Make unemployment insurance tax filings in Connecticut
Unemployment insurance tax reports and payments are due by the last day of the month following the end of the calendar quarter (for example, on April 30 for the first quarter). You must file unemployment insurance tax returns and make payments electronically unless you’ve been granted a waiver by the Connecticut Department of Labor.
- To file online, use the Connecticut Internet Tax and Wage System and pay any taxes due using Electronic Funds Transfer (EFT).
- To file by mail, include a check for any payments due with your Form UC-5A and Form UC-2. Employers who are allowed to file on paper receive forms at the end of each quarter. Do not use this option unless you have been granted a waiver from the Connecticut Department of Labor.
Once your business registers with the Connecticut Department of Labor and is found liable for unemployment insurance taxes, you must continue to file quarterly returns even if you have no employees or no taxes are due. You will be subject to a penalty if you fail to file.
For more information on state unemployment taxes, contact the Connecticut Department of Labor at 860-263-6470 or email them dol.webhelp@ct.gov.
Amend duplicate tax filings in Connecticut
The Connecticut Department of Revenue (DOR) allows you to correct any payroll that was misreported on a previously submitted Form CT-941 by filing a Form CT-941X. Here are some general guidelines for completing your amended return:
- Sign in to the Taxpayer Services Center (TSC) for Businesses.
- Obtain a copy of Form CT-941 that was originally filed. This is required for the “Amount as Originally Reported” section of the amendment.
- Submit your completed return online.
File your Form CT-941X as soon as possible to avoid unnecessary penalties or fees from underreporting your wages and taxes. If you have any questions, contact the Connecticut Department of Revenue at 860-297-5962 or visit the Connecticut Department of Revenue website.
The Connecticut Department of Revenue (DOR) allows you to correct any payroll that was misreported on a previously submitted Form CT-W3 and Form W-2(s) by filing an amended Form CT-W3 and Form W-2C(s). Here are some general guidelines for completing your amended returns:
- Obtain copies of the Form W-2C(s) that were filed with the IRS.
- Sign in to the Taxpayer Services Center (TSC) for Businesses.
- Use the information from the Form W-2C(s) to complete your amendments.
File your amended Form CT-W3 and Form W-2C(s) as soon as possible to avoid unnecessary penalties or fees from underreporting your wages and taxes. If you have any questions, contact the Connecticut Department of Revenue at 860-297-5962 or visit the Connecticut Department of Revenue website.
The Connecticut Department of Labor (DOL) allows you to correct any payroll that was misreported on a previously submitted Form UC‑2 and Form UC‑5A by filing Form UC‑2 (CORR) and Form UC‑5A (CORR). Here are some general guidelines for completing your amended returns:
- Sign in to the DOL website to file electronically or download Form UC‑2 (CORR) and Form UC‑5A (CORR) from the DOL website to file by mail.
- Submit your completed returns online or by mailing to the address listed on the form.
File your Form UC‑2 (CORR) and Form UC‑5A (CORR) as soon as possible to avoid unnecessary penalties or fees from underreporting your wages and taxes. If you have any questions on filing your amendments, contact the Connecticut Department of Labor at 860-263-6000 or visit the Connecticut Department of Labor website.
Register as a new employer in Connecticut
- Register online at the Connecticut Department of Revenue Services website.
- Allow approximately 10 business days to receive your Connecticut Tax Registration Number.
- If you need to speak with the Department of Revenue Services, call 860-297-5962.
- Register online at the Connecticut Department of Labor website.
- Upon successful completion of online registration, you will receive your Department of Labor Employer Registration Number.
- If you have issues, call the Department of Labor at 860-263-6000.
Find your Connecticut tax ID numbers and rate
Connecticut Department of Labor Employer Registration Number
Locate your seven-digit (XX-XXX-XXX) registration number on any previously filed quarterly report (Form UC-5A / UC-2R) or correspondence from the Department of Labor.
If you can’t find your Department of Labor Employer Registration Number, you may fax a request to the Employer Status Unit at 860-263-6567. See specific fax requirements on the Connecticut Department of Labor website.
If you have issues, call the Department of Labor at 860-263-6000.
Connecticut Contribution Rate
Your rate is the sum of the Employer Tax Rate and the Connecticut Fund Solvency Tax Rate. If you have an online account with the Connecticut Department of Labor, look up your rate on the CT Department of Labor website.
Locate your rate on any previously filed quarterly report (Form UC-5A/UC-2R) or on the Merit Rating Notice that the CT Department of Labor mails each December.
For help, call the Department of Labor at 860-263-6000
You are responsible for ensuring Square Payroll has the correct Contribution Rate on file for your business. If you need to update your rate, you can do so from your Square Dashboard.
Connecticut Paid Family Leave program
The Connecticut Paid Leave program covers all employers with one or more employees and is accessible to all employees who have met certain earned-wage thresholds. Square Payroll will calculate and withhold employee contributions and complete quarterly payments and filings on behalf of the employer. These deductions are submitted to the CT Paid Leave Authority quarterly or at an interval set by the CT Paid Leave Authority. You can learn more through the CT Paid Leave FAQ.
Businesses covered under Connecticut Paid Family and Medical Leave Act (PFMLA) need to register with the CT Paid Leave Authority to establish their account. This process allows third-party administrator registrations, such as Square Payroll, to pay and file contributions on your behalf.