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Connecticut Paid Leave

In this article:

Background

All Connecticut employers with one or more employees are required to register with CT Paid Leave.

This requirement extends to sole proprietors and self-employed individuals who have employees in the state; they must register as an employer. Additionally, sole proprietors have the option to opt in as a sole proprietor themselves.

Employers may request approval to offer a private plan as an alternative to the state plan. However, any private plan must be approved in advance and must offer benefits that are equal to or better than the state plan.

The Paid leave tax is at 0.5% of employee wages up to the Social Security contribution and benefit base. This is automatically calculated in the software, and there is nothing you need to configure. CT Paid Leave will use your FEIN for your CT Paid Leave account number, and the software will automatically fill in your FEIN for this account. However you must still register with the state.

Patriot Software will calculate the CT Paid Family Leave for all CT companies/employees who are not marked exempt. Full Service Payroll Customers who have completed their setup will also have the tax collected, deposited and filed on their behalf. 

How to Exempt a Company from Connecticut Paid Leave

  1. Go to Settings > Payroll Settings > Tax Exemptions
  2. Click “Add PL Exemption Status”
  3. Click the “Exempt” radio button
  4. Add and effective date ex. 1/1/202x
  5. Click Save

How to Exempt an Employee from  CT Paid Leave

  1. Go to Payroll > Employee list > {Employee Name} 
  2. Click on the Advanced Taxes tab
  3. Go to the PL section at the bottom of the page
  4. Click Add PL Exemption Status
  5. Click the radio button by  “Exempt “
  6. Add an Effective date, ex: 1/1/202X
  7. Click Save

💡Heads up Connecticut Employers!

Be sure to also review our blog article, “Connecticut Paid Sick Leave Information for Employers.” This separate requirement mandates that all Connecticut employers with 11 or more employees provide 1 hour of paid sick leave for every 30 hours an employee works effective January 2026. Beginning in 2027, this requirement will extend to all employers, regardless of size (including those with only one employee). The accrued hours must be displayed on the employees’ pay stub. 

To learn how to set up accrual rules, see our help How to Set Up & Manage Company Time Off Accrual Rules.

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