Connecticut Employer Requirements: Everything to Register Before Your First Hire
Connecticut Employer Requirements: Everything to Register Before Your First Hire
Hiring your first employee in Connecticut means registering with several state agencies before that person's first paycheck, and the registrations depend on each other. Miss one and you can end up with late penalties, an injured worker without coverage, or a payroll you cannot file correctly. This guide walks through the full set of connecticut employer requirements in the order most owners should handle them.
This is informational content, not legal or tax advice. Connecticut employment and tax rules change, and several items below are for you to confirm directly with the agency that administers them. For anything beyond routine setup, talk with a Connecticut employment attorney and a CPA.
The employer registration stack at a glance
Connecticut has no single state general business license. Employer obligations come from several separate registrations, and the table below shows the set you will likely touch before your first payroll.
| Requirement | Handled by | When | What to confirm |
|---|---|---|---|
| Entity formation (LLC or corporation) | Secretary of the State, through Business.CT.gov | First step | Yearly Annual Report |
| Income tax withholding account | Department of Revenue Services (DRS), myconneCT | Before first payroll | Deposit and filing schedule |
| Unemployment insurance account | Department of Labor (DOL) | Before first payroll | Starting contribution rate and registration steps |
| Workers' compensation insurance | Private insurer; Workers' Compensation Commission (WCC) | Before the employee starts work | Which exceptions apply |
| CT Paid Leave employer registration | CT Paid Leave program | Before first payroll | Remittance schedule and other registration duties |
| State paid sick leave | DOL | Based on headcount | How employees are counted |
| New-hire reporting | DOL | Within 20 days of hire | Required data fields and reporting method |
| Required workplace postings | DOL | On or before first hire | Current poster set |
Step 1: Form the entity and name a registered agent
If you are operating as an LLC or corporation, the entity comes first. An LLC files a Certificate of Organization (Domestic Limited Liability Company) for $120. A corporation files a Certificate of Incorporation (Domestic Stock Corporation) for $250. Both are filed through Business.CT.gov. Filing with the Secretary of the State is a registration, not a license, and it does not authorize you to hire anyone.
Your entity must also keep a registered agent in Connecticut at all times. The agent must be a Connecticut resident who is at least 18 years old, or a business entity registered with the Secretary of the State. The agent's address must be a usual place of business in Connecticut that is open during normal business hours. A post office box or commercial mailbox does not qualify. The yearly Annual Report is $80 for an LLC and $150 for a corporation, and it confirms your agent information each year. Business.CT.gov shows each entity its own next due date in its account, so check it rather than relying on a guessed deadline.
If you operate as a sole proprietor under your own name, you skip this step. Your local name and trade name rules still apply (see the local approvals section below).
Step 2: Register for income tax withholding with DRS
Connecticut requires employers to withhold state income tax from employee wages. You register through myconneCT, the DRS online system, using your federal Employer Identification Number (EIN). Connecticut's personal income tax is progressive, with seven brackets ranging from 2% to 6.99%, so your payroll software must use the current Connecticut withholding tables.
Confirm your filing frequency and deposit schedule with DRS once the account is open. This guide does not state those schedules, and they can change based on how much you withhold. The DRS home page is at portal.ct.gov/drs.
Step 3: Open an unemployment insurance account with DOL
Employers with employees pay unemployment insurance contributions to the state, so you need an account with the Department of Labor before your first payroll runs. DOL is also where you report new hires and where required workplace postings come from, so it is the agency you will deal with most often as an employer.
Confirm your starting contribution rate and the registration steps directly with DOL. The rate is not set out in this guide, and it can depend on your filing history and industry.
Step 4: Buy workers' compensation coverage before anyone starts work
With few exceptions, every employer with employees in Connecticut must carry workers' compensation insurance. The Workers' Compensation Commission administers the system. Coverage should be in force before the employee's first day, because an injury to an uninsured worker shifts the full cost of the claim onto your business.
Do not assume an exception applies to you because your workforce is small, part-time, or made up of family members. Ask the WCC which exceptions exist and whether they fit your situation. Confirm the penalties for operating without required coverage with the WCC as well.
Step 5: Register as an employer with CT Paid Leave
Connecticut's paid leave program is funded through payroll. Employees pay a 0.5% contribution, which you withhold from their wages. To handle that correctly, you need to register as an employer with the CT Paid Leave program so contributions are reported and remitted under your business.
Confirm your remittance schedule and any other duties tied to your registration with the program. Build the 0.5% withholding into your payroll setup from the first paycheck.
Step 6: Track the state paid sick leave phase-in
Connecticut's paid sick leave requirement under CGS 31-57s phases in by employer headcount. Your obligations depend on how many employees you have, so the table below is the one to check against your plans.
| Employer size | Coverage start | Status as of October 2026 |
|---|---|---|
| 25 or more employees | January 1, 2025 | In effect |
| 11 or more employees | January 1, 2026 | In effect |
| 1 or more employees | January 1, 2027 | Starts next year |
A business making its first hire in 2026 is not yet covered by the sick leave requirement, but it becomes covered on January 1, 2027. Plan your leave policy and payroll tracking before that date rather than after. Confirm how employees are counted and what leave you must provide with the Department of Labor.
Step 7: Pay at least the state minimum wage and post the required notices
Connecticut's minimum wage is $16.94 an hour in 2026. It rises to $17.48 an hour on January 1, 2027. Every hourly rate you set must meet the rate in effect when the work is performed, so build the January 2027 increase into your hiring plan now.
Employers must also display the required workplace postings issued by the Department of Labor. Posting requirements can change, so download the current set from DOL and confirm it before your first employee starts.
Step 8: Report every new hire to DOL within 20 days
Under CGS 31-254, you must report each new hire to the Department of Labor within 20 days of the hire date. Missing this window is easy to avoid if you add it to your onboarding checklist. Confirm the required information and the reporting method with DOL.
Employee or independent contractor: the ABC test
Get this classification right before you pay anyone. For Connecticut's unemployment law, a worker is treated as an employee unless the business can show all three parts of the ABC test under CGS 31-222(a)(1)(B)(ii):
- The worker is free from your control and direction in performing the work.
- The work is outside the usual course of your business, or outside all of your places of business.
- The worker is customarily engaged in an independent business of the same kind.
Failing any one part is enough to make the worker an employee under this test. A 1099 form or a signed independent contractor agreement does not decide the question by itself. If a role you want to fill with a contractor involves set hours, your equipment, your supervision, or work that is central to what you sell, treat it as a hire until a professional tells you otherwise.
Local approvals, trade licenses, and the sales tax permit
Connecticut has no county government, so your local approvals come from your town or city, from local health departments and districts, and from planning regions. Zoning and occupancy approvals come from your town. Local health approvals may also apply, depending on your industry and location.
Licensing depends on your trade rather than on a general state license. Agencies such as the Department of Consumer Protection, the Department of Public Health, the Insurance Department, and the Department of Banking issue licenses for regulated fields. Check the Business.CT.gov New Business Checklist and the eLicense system to identify which apply to you.
If you operate under a name other than your legal name, file a Trade Name Certificate with the town clerk where the business is primarily transacted. The fee is $20. This filing goes to the town clerk, not the Secretary of the State.
If you sell taxable goods or services, you also need a Sales and Use Tax Permit from DRS. It carries a $100 registration fee and must be displayed at each location. Details are on the DRS sales tax page at portal.ct.gov/drs/sales-tax/tax-information.
The order to do this in
- Form your LLC or corporation and appoint a Connecticut registered agent.
- Get your federal EIN and confirm any trade licenses, town zoning approvals, and the Trade Name Certificate if you need one.
- Register with DRS through myconneCT for withholding, and get the sales tax permit if you sell taxable items.
- Open your DOL unemployment insurance account.
- Bind workers' compensation coverage that starts before the first day of work.
- Register with the CT Paid Leave program.
- Post the required DOL notices and set your payroll to the current minimum wage.
- Calendar the sick leave change on January 1, 2027 and the minimum wage change on the same date.
- Report each new hire to DOL within 20 days.
Common mistakes first-time employers make
- Treating a Secretary of the State filing as a license. Registering an LLC does not authorize you to operate a regulated trade.
- Looking for a county office. Connecticut has no county government, so local approvals and trade name filings go to towns, cities, and local health bodies.
- Paying a worker as a 1099 contractor without running the ABC test. Misclassification can leave you owing unemployment contributions and withholding on wages you thought were not wages.
- Starting work before workers' compensation is in force. A single uninsured injury can cost far more than the premium.
- Forgetting the January 1, 2027 changes. The sick leave expansion to employers with one or more employees and the minimum wage increase to $17.48 both take effect that day.
Where to confirm the details
Verify fees, deadlines, and rates on the agency pages before you act, because several figures in this guide are for you to confirm. Start with these official resources:
- Business.CT.gov, for entity filings and the New Business Checklist: business.ct.gov
- Connecticut Secretary of the State, Business Services Division: portal.ct.gov/sots/business-services/bsd
- Business name search (free): service.ct.gov business search
- Connecticut Department of Revenue Services: portal.ct.gov/drs
For the Department of Labor, the Workers' Compensation Commission, and the CT Paid Leave program, use the agency websites listed on Business.CT.gov, and call each agency if a requirement in this guide does not match what you see.
If your business has multiple owners, outside investors, a mix of employees and contractors, or a regulated license, bring in a Connecticut employment attorney and a CPA before your first hire. The Connecticut Small Business Development Center also offers free advising for owners at ctsbdc.uconn.edu.