Connecticut Pay Stub,
Paycheck & Tax Guide

Connecticut payroll in 2026 includes federal payroll taxes, Connecticut income tax withholding and a 0.5 percent employee contribution to Connecticut Paid Leave for covered workers. Employers also have specific wage statement, minimum wage and unemployment insurance responsibilities.

Connecticut requires employers to furnish employees with wage information that can include hours worked, gross earnings, straight-time and overtime earnings, itemized deductions and net earnings. The state minimum wage increased to $16.94 per hour on January 1, 2026.

Connecticut Payroll at a Glance

Connecticut has more state-specific payroll deductions than states without individual income tax or paid leave contributions.

Connecticut publishes separate 2026 withholding tables plus Form CT-W4 for employee state withholding.

What Must Be Included on a Connecticut Pay Stub?

Connecticut requires employers to provide employees with a wage statement showing information needed to understand the payment. Payroll records should document the components that connect hours worked and gross earnings with deductions and net pay.

• Hours worked
• Gross earnings
• Straight-time earnings
• Overtime earnings where applicable
• Itemized deductions
• Net earnings

A detailed wage statement allows employees to compare gross compensation with the taxes and deductions that reduce take-home pay.

Employers can use a Connecticut pay stub generator to organize genuine payroll figures into a clear statement after the wages have been calculated.

What Taxes Are Deducted From a Connecticut Paycheck?

A Connecticut paycheck can include federal income tax, Connecticut income tax, Social Security, Medicare and the CT Paid Leave employee contribution. Other benefit or legally authorized deductions can also apply.

Connecticut income tax withholding depends on the employee's state withholding information and the current withholding tables. Employees generally use Form CT-W4 to give employers the information needed for state withholding.

CT Paid Leave is another important state-specific payroll deduction. The contribution rate remains 0.5 percent for 2026. Employees contribute until wages reach the Social Security contribution limit.

An employee can use a Connecticut paycheck calculator to estimate how these deductions may affect net pay.

How Is Net Pay Calculated in Connecticut?

Connecticut net pay begins with gross wages then subtracts applicable federal taxes, state withholding, CT Paid Leave and other employee deductions.

Net Pay = Gross Pay - Federal Withholding - Connecticut Withholding - Social Security - Medicare - CT Paid Leave - Other Deductions

Gross pay should be calculated before these employee deductions are applied. Hourly employees may have regular wages plus overtime. Salaried employees generally start with the salary amount allocated to the relevant pay period. Benefits and pre-tax deductions can also change taxable wages.

How Does Connecticut Income Tax Withholding Work?

Connecticut employers use state withholding methods to determine the amount of Connecticut income tax withheld from wages. Employees use Form CT-W4 to provide the employer with information needed to calculate the appropriate state withholding.

State withholding should not be confused with final annual income tax liability. The amount withheld throughout the year is credited against the taxpayer's Connecticut income tax when the return is prepared.

The Connecticut income tax guide provides more detail on state income tax, taxable income, withholding and filing requirements.

Connecticut Minimum Wage in 2026

Connecticut's minimum wage is $16.94 per hour beginning January 1, 2026. Employers need to use the applicable wage rate before calculating payroll deductions.

Minimum wage compliance is part of the gross pay calculation rather than a tax issue. An employer cannot fix an incorrect wage calculation merely by applying the right tax rates afterward.

Connecticut Overtime and Wage Records

Connecticut employers must keep accurate daily and weekly hour records for covered employees. Payroll records should distinguish straight-time earnings from overtime earnings when overtime applies.

Covered nonexempt employees generally qualify for overtime when they work more than 40 hours during a workweek.

How Does CT Paid Leave Affect Payroll?

CT Paid Leave is funded through employee payroll contributions. The contribution rate remains 0.5 percent for 2026. Employers deduct the contribution from covered employee wages then remit the amount to the CT Paid Leave Authority.

The contribution applies to covered wages up to the Social Security contribution and benefit base. CT Paid Leave should appear as its own payroll item rather than being combined with Connecticut income tax.

Connecticut Unemployment Insurance Is an Employer Tax

Connecticut unemployment insurance is generally funded through employer contributions rather than being deducted as an ordinary employee tax. For 2026, the unemployment insurance taxable wage base is $27,000. The new employer rate is 1.90 percent.

Because unemployment insurance is an employer payroll cost, it should not be presented as though it reduces an employee's normal take-home pay.

Connecticut Payroll Deductions and Employee Authorization

Connecticut restricts when employers may withhold or divert employee wages. Payroll departments should clearly separate required taxes from voluntary deductions.

A pay stub should reflect what was actually deducted rather than combining multiple unrelated items under a vague label.

Connecticut Paystub vs. Paycheck

A Connecticut paystub explains how the employee's compensation was calculated. A paycheck is the payment the employee receives. Gross wages may include straight-time earnings plus overtime. State income tax, federal taxes and CT Paid Leave may then reduce the amount received as net pay.

A Connecticut pay stub can organize these genuine payroll values into an itemized statement.

How Connecticut Sales Tax Differs From Payroll Tax

Connecticut's general sales tax rate is 6.35 percent for most taxable retail sales, leases, rentals and taxable services. Connecticut does not impose additional general local sales taxes by city or county.

Sales tax is separate from employee payroll withholding. A worker's pay stub should not include ordinary Connecticut sales tax as an employee deduction.

See our Connecticut sales tax guide for a dedicated explanation of taxable transactions, special rates and sales tax rules.

Connecticut Payroll Requirements for Employers

Connecticut payroll requires employers to coordinate wage calculation, state withholding, federal taxes, CT Paid Leave contributions and detailed wage records.

A practical payroll process starts with employee classification and hours worked. Employers then determine gross wages, calculate overtime where applicable, apply tax withholding, process other authorized deductions and calculate net pay.

Organize Connecticut Payroll Information With Online PayStub

A clear payroll record helps employees and employers review compensation without mixing employee deductions with employer taxes.

After genuine payroll figures are calculated, you can also use Online PayStub to organize employer information, employee information, gross wages, deductions and net pay into a professional pay stub.

Online PayStub is intended for lawful payroll, business and recordkeeping purposes. The document should reflect real employment and genuine payment information.