Connecticut · 2026 and 2027
Connecticut employer payroll taxes and employee cost: 1.9% SUTA on $27,000
In Connecticut, a $50,000 employee costs a new employer about $63,336 a year in 2026: 26.7% on top of pay for payroll taxes, unemployment insurance, workers' comp and health coverage. Change any input to see your own number.
Calculate the cost of an employee in Connecticut
Estimates for planning, not tax or legal advice. Rates change and some depend on your business; confirm yours with your state agencies, insurer or payroll provider.
What a Connecticut employer pays on top of pay
Every line of the calculator, explained, with the official source of each number.
- Social Security and Medicare
7.65% of pay
The employer matches the employee: 6.2% Social Security on pay up to $184,500 in 2026 ($192,300 in 2027) and 1.45% Medicare on all pay.
per Social Security Administration, as of Jan 1, 2026
- Federal unemployment tax (FUTA)
$42 per employee
6% of the first $7,000 of each employee's pay, less the 5.4% credit for paying Connecticut unemployment tax on time.
per Internal Revenue Service, as of Jan 1, 2026
- Connecticut unemployment insurance (SUTA)
1.9% of $27,000
New employers pay 1.9% on the first $27,000 of each employee's pay in 2026. After two to three years the rate follows your own claims history.
per U.S. Department of Labor, Employment and Training Administration, as of Jan 1, 2026
- CT Paid Leave
$0 for the employer
Funded by a 0.5% employee deduction; employers remit it and pay no share of their own.
per Connecticut Paid Leave Authority, as of Jan 1, 2026
- Paid sick leave
40 hours a year
One hour per 30 hours worked, up to 40 hours a year, for employers with 11 or more employees in 2026. The hours are paid but not worked, so they raise the cost per hour worked.
per Connecticut Department of Labor, as of Jan 1, 2026
- Workers' compensation
$1.48 per $100 of payroll
Index rate for a standard mix of job classes: rank 6 of 51 (1 = highest) and 135% of the national median in the 2024 study. Your premium depends on your job classes and claims history.
per Oregon Department of Consumer and Business Services, as of Jan 1, 2024
- Health insurance (employer share)
$8,216 single / $23,721 family
Average employer contribution per enrolled employee a year at Connecticut private-sector employers that offer coverage, 2025 survey.
per Agency for Healthcare Research and Quality (MEPS-IC), as of Jan 1, 2025
- Minimum wage
$16.94 in 2026, $17.48 in 2027
Connecticut's rate since Jan 1, 2026. Adjusted each January 1 to the employment cost index From January 1, 2027: $17.48.
per Connecticut Department of Labor, as of Jan 1, 2026
Checked against each source on Oct 23, 2026.
Two worked examples in Connecticut
Both for a new employer with 10 employees in a general industry in 2026, with single health coverage at the state average.
Salaried employee at $50,000
A $50,000 salary, 40 hours a week.
| Pay for hours worked2,080 hours | $50,000 |
|---|---|
| Social Security (employer share)6.2% of $50,000 | $3,100 |
| Medicare (employer share)1.45% of $50,000 | $725 |
| FUTA (federal unemployment tax)0.6% of $7,000 | $42 |
| State unemployment insurance (new employer)1.9% of $27,000 | $513 |
| Workers' compensation (state index rate)$1.48 per $100 of payroll | $740 |
| Health insurance (single coverage, state average)average employer contribution | $8,216 |
| Total cost a year | $63,336 |
26.7% on top of pay · $30.45 per hour worked
Hourly employee at $18 an hour
$18 an hour for 40 hours a week, 52 weeks.
| Pay for hours worked2,080 hours | $37,440 |
|---|---|
| Social Security (employer share)6.2% of $37,440 | $2,321 |
| Medicare (employer share)1.45% of $37,440 | $543 |
| FUTA (federal unemployment tax)0.6% of $7,000 | $42 |
| State unemployment insurance (new employer)1.9% of $27,000 | $513 |
| Workers' compensation (state index rate)$1.48 per $100 of payroll | $554 |
| Health insurance (single coverage, state average)average employer contribution | $8,216 |
| Total cost a year | $49,629 |
32.6% on top of pay · $23.86 per hour worked
What changes for Connecticut employers in 2027
- The Social Security wage base rises from $184,500 to $192,300: up to $484 more employer tax for employees paid above it. per Social Security Administration, as of Jan 1, 2027
- Connecticut's minimum wage becomes $17.48 an hour on January 1, 2027. per Office of the Governor of Connecticut, as of Jan 1, 2027
Only changes already official on Oct 23, 2026. Most states publish next year's unemployment insurance rates in November and December; this page is updated when they do.
Frequently asked questions
How much does it cost to hire an employee in Connecticut?
About $63,336 a year in 2026 for a $50,000 employee of a new Connecticut employer with 10 staff: $13,336 above pay, of which $8,216 is health coverage, $740 workers' comp and $513 Connecticut unemployment tax. At $18 an hour full time: $49,629.
What payroll taxes do employers pay in Connecticut?
Connecticut new employers pay $4,380 yearly on a $50,000 salary, $513 of it state unemployment tax.
What is the Connecticut SUTA rate for new employers in 2026?
1.9% on the first $27,000 of each employee's pay: up to $513 per employee a year.
What is the minimum wage in Connecticut in 2027?
$17.48 an hour from January 1, 2027, after $16.94 an hour in 2026: $36,358 for a full-time year.
Is paid sick leave required in Connecticut?
Yes. One hour per 30 hours worked, up to 40 hours a year, for employers with 11 or more employees in 2026. That is 40 paid hours a year for a full-time Connecticut employee at 100 employees.
How much does workers' comp cost in Connecticut?
$1.48 per $100 of payroll at Connecticut's index rate (rank 6 of 51, 135% of the median): about $740 on $50,000 of pay.
How much do Connecticut employers pay for health insurance?
$8,216 a year per employee with single coverage and $23,721 with family coverage, the average Connecticut private-employer share of $9,987 and $28,700 premiums in 2025.
Does Connecticut have a paid family leave or disability tax for employers?
CT Paid Leave: Funded by a 0.5% employee deduction; employers remit it and pay no share of their own.
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Software and services for these costs
- Payroll Software
Calculates and files these payroll taxes for every state you hire in.
- PEO Services
Takes on payroll taxes, workers' comp and benefits, often at group rates.
- Benefits Administration
Runs the health plan and leave programs behind the benefits lines.
Benefits and workers’ comp are most of this cost
A PEO pools employers for health insurance and workers’ comp, often at group rates. Compare PEOs we research, with verified prices and features.