Connecticut New Employer Information
Federal and State Tax Accounts
Federal Tax Accounts:
- You will need to have an Employer Identification Number, (also known as an EIN or FEIN), for your business.
- The EIN is a unique nine digit number assigned by the IRS to identify your business.
- If you do not already have one, you can apply for an EIN with the IRS online. There is no cost to apply for an EIN.
- To read more about how to apply for an EIN, read our help article, “Your Step-by-step Guide on How to Apply for EIN”.
- Although it is not required, we recommend you enroll in the Electronic Federal Tax Payment System (EFTPS). You can easily register online.
- You will need to have this account to make tax payments online or view any tax deposits made on your behalf by Patriot Software if you are a Full Service Payroll customer.
- To find out more about EFTPS, read our article, “What Is EFTPS?”
State of Connecticut Tax Accounts
- New employers in Connecticut will also need to register online with the Connecticut Department of Labor for a state unemployment insurance (SUI) tax account.
Setting Up Your New Employee
- Have your new employee fill out Form W-4, Employee’s Withholding Certificate. This will be used for federal income taxes (FIT).
- For more information, read our help article, “Updates to the Income Tax Withholding Tables and What You Need to Know”
- Have your new employee fill out Form CT-W4, State of Connecticut Employee’s Withholding Certificate. This is used for Connecticut state income withholding (SIT).
- Report all new hires online with the Connecticut Department of Labor’s Online New Hire Reporting System within 20 days from the date of hire or rehire.
- For more information, read “What Is New Hire Reporting?”
- Connecticut’s minimum wage exceeds the federal minimum wage, so you must comply with the greater wage. As of September 1, 2020, Connecticut’s minimum wage is $12.00. Starting August 1, 2021, Connecticut’s minimum wage will increase to $13.00.
- You need to display the Connecticut minimum wage poster where your employees can read it.
Once you have all the necessary information, you will be able to set up your payroll for your business.
You need to keep employee payroll records for a minimum of three years. For more information, read our help article, “What Employers Should Know About Employee Payroll Records”
This is not an all-inclusive list and employers should contact their state and local government for a full list of compliances.
Let us know if you have any questions. We are here to help!