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Navigating Connecticut Payroll Taxes
While federal payroll obligations are essential, Connecticut employers must also comply with state-level new hire reporting and income tax withholding requirements. This includes reporting newly hired and rehired employees to the Connecticut Department of Labor (CT DOL) and filing Form CT-941, Connecticut Quarterly Reconciliation of Withholding, with the Department of Revenue Services (DRS) to report state income tax withheld from employee wages.
Connecticut New Hire Reporting
New Hire Reporting is a legal requirement for employers in Connecticut to report newly hired or rehired employees (and certain independent contractors) to the Connecticut Department of Labor (CT DOL) so that the state can maintain a directory of new hires and support enforcement of child support obligations.
Who must report
All employers doing business in Connecticut must report information about newly hired and rehired employees to the Connecticut Department of Labor. This includes:
- Employees hired for work performed in Connecticut.
- Former employees returning to work after a separation of 60 days or more.
Independent contractors whose services are valued at $5,000 or more in 12 months also must be reported. This is because state law treats such independent contractors as “employees” for new hire reporting. Learn more
What to report
When reporting a new hire, employers must provide:
-
Employee information: Full name, address, Social Security Number (SSN), and date of hire (first day services
are performed). -
Employer information: Federal Employer Identification Number (FEIN), business name, business address, and
contact information.
Connecticut follows the federal standard for “date of hire” — this is the first day the employee performs
compensated services.
When to report
All Connecticut employers are required to report all newly-hired employees within 14 days of hiring them (or within 20 days if reporting via fax or mail). Learn more
How to report
Connecticut employers have several options to submit new hire reports:
1. Online (Recommended):
- Use the Connecticut Department of Labor New Hire Reporting portal to report new hires securely online. Employers need a valid CT.gov account to log in and submit a new hire report.
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2. File Upload / FTP / Excel layout:
For large volumes or periodic batch reporting, employers can request access to the CT DOL Secure FTP service.
3. Fax:
- Visit the Connecticut New Hire Reporting website.
- Fax it to: 800-816-1108
- Keep a copy of the fax confirmation for your records.
3. Mail:
Complete the New Hire Reporting Form and mail it to:
Connecticut Department of Labor
Office of Research, ATTN: CT-W4
200 Folly Brook Blvd.
Wethersfield, CT 06109
Use certified or trackable mail for proof of delivery.
New Hire Reporting Penalties
Connecticut does not impose a specific late reporting penalty for new hires; the state focuses on compliance, but you must report within 20 days to the Connecticut Department of Labor (DOL) system.
Corrections
If errors are discovered on the previously filed new hire report, you will need to resubmit the entire new hire. Once a new hire has been submitted, the record can not be corrected.
Form CT-941: Connecticut Quarterly Reconciliation of Withholding
Employers in Connecticut use Form CT-941, Connecticut Quarterly Reconciliation of Withholding, to report Connecticut income tax withheld from employee wages during a calendar quarter.
Who Must File
All employers registered for Connecticut income tax withholding must file Form CT-941 if they pay wages subject to Connecticut income tax withholding.
This filing requirement applies to:
- Businesses
- Nonprofit organizations
- Government agencies
- Other entities with employees subject to Connecticut withholding
Employers must file Form CT-941 for every calendar quarter, even if:
- No Connecticut income tax was withheld, or
- No tax is due for the quarter
Exceptions:
- Household employers file Form CT-941 HHE annually instead of quarterly.
- Seasonal, annual, or certain agricultural employers may request DRS approval to file only for applicable quarters or annually.
What to Report
Form CT-941 requires employers to report the following information:
Employer Information
- Business name and address
- Federal Employer Identification Number (FEIN)
- Connecticut Tax Registration Number
- Reporting quarter (1–4)
Withholding Details
- Gross wages paid (federal purposes)
- Gross Connecticut wages
- Total Connecticut income tax withheld
- Credit from prior quarter (if any)
- Payments made for the quarter
Tax Calculation
- Net tax due or overpayment
- Penalty and interest (if applicable)
- Amount credited to the next quarter or refunded
Form Types
Connecticut uses quarterly reconciliation returns for wage withholding:
-
Form CT-941 — Connecticut Quarterly Reconciliation of Withholding
Used to report:
- Connecticut wages paid
- Connecticut income tax withheld
- Payments and credits
- Tax due, credit, or refund
Important:
- Form CT-941 is used only for wages.
- Withholding on nonpayroll payments (such as pensions or gambling winnings) must be reported on Form CT-945, not CT-941.
When to File
Form CT-941 is filed quarterly.
Filing Due Dates
- Q1 (Jan-Mar): April 30
- Q2 (Apr-Jun): July 31
- Q3 (Jul-Sep): October 31
- Q4 (Oct-Dec): January 31 of the following year
If the due date falls on a weekend or legal holiday, the return is due the next business day.
How to File
You have several filing options to file Form CT-941:
1. Electronic Filing (Mandatory)
- Form CT-941 must be filed and paid electronically unless the employer has been granted an approved waiver by DRS.
- Employers must file using myconneCT, Connecticut’s official online tax portal.
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2. Paper Filing (Only With an Approved Waiver)
Employers who are unable to file electronically may request a waiver by submitting Form DRS-EWVR, Electronic Filing and Payment Waiver Request.
If the waiver is approved, the employer may file a paper Form CT-941, mail the completed return and payment to:
Department of Revenue Services
State of Connecticut
PO Box 2931
Hartford, CT 06104-2931
Using trackable mail is recommended for record-keeping and compliance.
How to Pay
-
Withholding tax payments must be made electronically through myconneCT, unless the employer has an
approved waiver. - Electronic payments are generally made via Electronic Funds Transfer (EFT).
- Failure to remit payments electronically when required may result in penalties.
Connecticut Withholding Penalties
Employers must file and pay Form CT-941 on time. Failure to comply may result in penalties and interest.
Late Payment Penalty
- 10% of the tax paid late
Failure to Pay Electronically Penalty
- First offense: 10% of the required payment (up to $2,500)
- Second offense: 10% (up to $10,000)
- Third and subsequent offenses: 10%
Late Filing Penalty
- If no tax is due, DRS may impose a $50 penalty for late filing
Interest
- Interest accrues at 1% per month or fraction of a month on unpaid tax
Corrections
If Form CT-941 was filed with errors—such as incorrect wages, withholding amounts, or payments—you must file an amended return.
- Amendments must be filed electronically using myconneCT
- Only employers with an approved electronic filing waiver may file Form CT-941X (paper)
Corrections may be made for:
- Withholding amounts
- Payments reported
- Credits applied
- Overpayment or underpayment errors
A separate amended return must be filed for each quarter being corrected.
If additional tax is due, payment must be submitted through myconneCT or with the amended return (if filing under waiver).
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| Forms | Price per Form* |
|---|---|
| Withholding Form (Form CT-941) | $5.95 |
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Frequently Asked Questions
What is Connecticut New Hire Reporting?
Connecticut New Hire Reporting requires employers to report all newly hired or rehired employees to the Connecticut Department of Labor (CT DOL). This helps support child support enforcement and other state programs. Independent contractors with services valued at $5,000 or more in a 12-month period must
also be reported.
When must employers report a new hire in Connecticut?
Connecticut employers must report new hires within 14 days of the employee’s date of hire when reporting online, or within 20 days if reporting by fax or mail. The date of hire is the first day the employee performs compensated services.
How do I correct a new hire report if I made an error?
If you discover an error after submitting a new hire report, you can correct it through the online New Hire Reporting system or by re-submitting accurate information through the same method used originally.
Do I have to report every employee regardless of age or job type?
Yes. In Connecticut, every employee — including minors, students, and household employees — must be reported as a new hire. Neither age nor occupation exempts an employee from reporting requirements.
Who is considered an employer for Connecticut income tax withholding?
You are considered an employer if you pay wages to individuals who have Connecticut wages, whether or not Connecticut income tax is withheld. If you have no employees paid Connecticut wages, you are not required to register for withholding tax.
What is Form CT-941 and who must file it?
Form CT-941 is the Connecticut Quarterly Reconciliation of Withholding. Employers who withhold Connecticut income tax from employee wages must file Form CT-941 each calendar quarter, even if no tax was withheld for that period.
What do I report on Form CT-941?
On Form CT-941, employers report:
- Total gross wages and Connecticut wages,
- Connecticut income tax withheld,
- Credits from prior quarters,
- Payments made for the quarter,
- Net tax due or overpayment, plus penalty and interest if applicable.
How do I correct errors on a previously filed Form CT-941?
If you discover errors on a previously filed Form CT-941—such as incorrect Connecticut wages, withholding amounts, payments, or credits—you must file an amended Form CT-941.
- Most employers must file corrections electronically through myconneCT, the Connecticut Department of Revenue Services (DRS) online portal.
- Employers who have an approved electronic filing waiver may file Form CT-941X on paper.
You must file a separate amended return for each quarter being corrected and clearly report the corrected figures. If additional tax is due, payment must be made electronically through myconneCT (or with the amended return if filing under an approved waiver).
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