Free Connecticut Payroll Tax Calculator and CT Tax Rates

Federal Payroll Taxes for Connecticut Employers

First and foremost, let’s pay Uncle Sam. Our handy payroll calculator can help you figure out the federal payroll tax withholding for both your employees and your business.

Below is a quick 6-step overview of everything that goes into calculating the payroll tax for your employees. If you prefer to see a more detailed calculation, we created a step-by-step guide just for you.

1. Figure out the employee’s gross wages. Gross wages represent the amount of money an employee has earned during the most recent pay period.
   1. Hourly employees: Multiply the number of hours worked in the most recent pay period by their pay rate. Make sure to calculate any overtime hours worked at the appropriate rate.
   2. Salaried employees: Divide each employee’s annual salary by the number of pay periods you have each year.
   3. Don’t forget to add bonuses, commissions, and tips in here as well.
2. Deduct any pre-tax withholdings. Do your employees have 401(k) accounts, flexible spending accounts (FSA), or other pre-tax deductions? If so, deduct their contributions to these accounts from their gross wages before you start applying federal payroll taxes.
3. Deduct federal income taxes, which can range from 0% to 37%. We won’t get into the nitty-gritty here, but you can find all the withholding information through this IRS publication.
4. Deduct and match any FICA taxes to cover Medicare and Social Security taxes:
   1. Medicare tax: Withhold 1.45% of each employee’s taxable wages until they have earned $200,000 in a given calendar year. You as the employer will need to match this tax. For employees who earn more than $200,000 in taxable wages, you need to withhold what’s called an Additional Medicare Tax (super original, we know). The rate is 0.9%. Only the employee is responsible for paying the Additional Medicare Tax.
   2. Social Security tax: You need to withhold 6.2% of each employee’s taxable wages until they have earned $160,200 in the 2022 calendar year. The maximum amount of Social Security tax that employees must pay would, therefore, be $9,932.40. As the employer, you also must match this tax.
5. Pay FUTA unemployment taxes: You as the employer are responsible for paying 6% of the first $7,000 of taxable income an employee earns annually, for a maximum tax of $420 per employee. However, you can claim a tax credit of up to 5.4% for paying your Connecticut state unemployment taxes in full and on time each quarter, which means that when everything’s said and done, you’ll only have to pay 0.6% FUTA tax. Your employees are not responsible for paying FUTA taxes.
6. Subtract any post-tax deductions: Most of your employees will be done at this point, but some employees may be responsible for court-ordered wage garnishments or child support. They may also choose to make post-tax contributions to savings accounts, elective benefits (like life insurance), or other withholdings.

Connecticut State Payroll Taxes for 2023

Now that we’re done with federal income taxes, let’s tackle Connecticut state taxes. The State of Connecticut is on the high end of marginal income tax rates compared to the rest of the country. It’s a progressive income tax that ranges from 3% to 6.99%.

Connecticut does not have any local city taxes, so all of your employees will pay only the state income tax.

Keep in mind

Workers’ compensation is mandated across most states, and it’s no different in Connecticut. Learn how policies work, how this type of coverage protects employees from workplace injuries and illnesses, and what employers should know in our guide to Connecticut workers’ compensation insurance.

Connecticut State Unemployment Insurance (SUI)

As an employer, you’re responsible for paying SUI (remember, if you pay your state SUI in full and on time, you get a 90% tax credit on FUTA).

• SUI tax rates range from 1.7% to 6.6%.
• New employers pay 2.8% in 2023.
• The taxable wage base remains $15,000 for each employee in 2023.

Connecticut State Paid Family and Medical Leave Act (PFMLA)

You need to withhold one half of one percent (0.5%) of each employee’s taxable wages up to the Social Security contribution base ($160,200 in 2023). Withholding from employees’ paychecks for the PFMLA began on Jan. 1, 2021, and benefits are paid to employees as of Jan. 1, 2022.

Additional CT Payroll Tax resources:

If all that wasn’t enough, and you want to learn more about Connecticut payroll taxes, here are a few websites we suggest you check out:

Department of Revenue Services: (860) 297-5962 | Withholding Information | Small Business Assistance | New Employer Information

Department of Labor: (800) 263-6000 | File Your Taxes Online | How To Register

More helpful payroll calculators

Employers in Connecticut can confidently calculate their employees’ gross pay, net pay, and deductions using the calculator at the top of this page. But from time to time, employers may face situations that require a little more number crunching. For example, do you occasionally offer bonuses to your top-performing employees? Keep in mind that Uncle Sam considers this type of payment to be supplemental wages and requires taxes to be withheld. Additionally, sometimes employee turnover comes with the territory, and employers may have to figure out what a worker’s final paycheck will be. So, if you can use a little more help adding up the numbers, check out some of the calculators listed below.