Connecticut Paid Leave: Employer Duties, the 0.5% Contribution and Who Is Covered
Connecticut Paid Leave: Employer Duties, the 0.5% Contribution and Who Is Covered
Connecticut has two separate paid leave rules, and employers often mix them up. The first is the state paid leave program, funded by a payroll contribution that the employee pays. The second is the paid sick leave law under CGS 31-57s, which requires employers to give employees accrued sick time. This guide covers what each rule requires of you as an employer, what the contribution costs, and who falls under each one. Confirm current figures with the agencies named at the end before you change your payroll or write a policy.
Disclaimer: This guide is informational content only. It is not legal, tax or payroll advice. Rates, wage bases and deadlines can change, so confirm current requirements with the Connecticut Paid Leave Authority and with a qualified employment attorney or CPA, especially if you have contractors, multiple states or a complex payroll.
Two Programs, Two Sets of Rules
Before you run payroll, separate these two obligations in your head. They have different funding, different administrators and different employer duties.
| Item | Connecticut paid leave program | Paid sick leave (CGS 31-57s) |
|---|---|---|
| Who pays | Employee, through a 0.5% payroll withholding | Employer provides accrued sick time |
| Employer cost | Withhold and remit only. No employer match. | Paid time off that the employer must allow |
| Administered by | Connecticut Paid Leave Authority | Enforcement questions go to the Connecticut Department of Labor |
| Where to register or start | ctpaidleave.org | Check your headcount against the phase-in table below |
The 0.5% Employee Contribution
The Connecticut Paid Leave Authority board has held the employee-paid contribution at 0.5% for 2026. The contribution applies to wages up to the Social Security wage base, which is $184,500 in 2026. That makes the most any employee pays for 2026 $922.50, which is 0.5% of $184,500.
Use this table to estimate withholding for common salaries. Wages above the wage base are not subject to the contribution.
| Annual covered wages (2026) | Employee contribution at 0.5% |
|---|---|
| $40,000 | $200.00 |
| $75,000 | $375.00 |
| $184,500 (wage base) | $922.50 |
| $250,000 | $922.50 (capped at the wage base) |
Four rules govern how you handle the contribution:
- No employer match. The contribution is paid by the employee. You withhold it from wages and remit it. You do not add your own amount on top.
- Stop at the wage base. Track each employee's year-to-date wages so withholding stops once the 2026 wage base of $184,500 is reached.
- Remit quarterly. You remit the withheld amounts through the Authority's employer portal at ctpaidleave.org, by the last day of the month after each quarter ends.
- The rate can change. The board sets the rate each year. The 0.5% figure is the 2026 rate, so confirm the 2027 rate with the Authority before you update your payroll setup.
The quarterly remittance deadlines for the year are:
| Quarter of wages | Remittance due |
|---|---|
| January to March | April 30 |
| April to June | July 31 |
| July to September | October 31 |
| October to December | January 31 of the following year |
If you miss a remittance date, the amount is still owed. Calendar the four dates when you set up payroll, not at the end of the year.
Employer Duties Checklist
- Register with the Authority. Set up your employer account at ctpaidleave.org. This is a registration with the program. It is not a business license.
- Set up payroll withholding. Configure the 0.5% deduction for every employee whose wages are covered, and make sure it is not matched by the company.
- Apply the wage base. Stop withholding once an employee's year-to-date covered wages reach $184,500 in 2026.
- Remit quarterly. Pay the withheld amounts through the portal by April 30, July 31, October 31 and January 31.
- Keep records. Retain withholding detail, wage records and portal confirmations so you can reconcile each quarter and answer questions later.
- Show withholding on pay stubs. Employees should be able to see the contribution as a separate deduction.
- Refer benefit questions to the Authority. Eligibility for benefits and claim rules are handled by the Authority, not by your payroll staff.
- Track sick leave if you are covered. Set up accrual tracking now if your headcount already triggers the paid sick leave law, as described below.
Who Is Covered
Employees under the contribution
The contribution applies to wages paid to employees in Connecticut. This guide does not list exemptions or benefit eligibility rules, and they are the Authority's to define. Before you classify any worker as an independent contractor or treat a role as exempt, confirm the rule with the Authority. Misclassifying a worker can leave you paying contributions you did not withhold.
Sole proprietors and self-employed people
Sole proprietors and self-employed people are not employees, so the employer withholding rules do not apply to them. They may opt in to the program for themselves. An opt-in is their choice, and it is handled through the Authority, not through your payroll.
Paid sick leave coverage by headcount
The paid sick leave law phases in by employer size. Your coverage depends on the number of employees you have:
| Employer size | Covered from |
|---|---|
| 25 or more employees | January 1, 2025 |
| 11 or more employees | January 1, 2026 |
| 1 or more employees | January 1, 2027 |
As of October 22, 2026, employers with 11 or more employees are covered. Employers with 10 or fewer are not yet covered and will be from January 1, 2027. Your headcount can change during the year, so review it each January and confirm how the Connecticut Department of Labor counts employees before you rely on the threshold.
Paid Sick Leave Under CGS 31-57s
The paid sick leave law is separate from the 0.5% contribution. If your business is covered, the core rules are:
- Accrual rate: One hour of paid sick leave for every 30 hours worked.
- Annual cap: Up to 40 hours of paid sick leave per year.
- Waiting period: Employees may use accrued leave only after the 120th calendar day of employment.
For example, a full-time employee who works 2,080 hours in a year accrues about 69 hours at the one-hour-per-30 rate. The 40-hour annual cap controls, so that employee's sick leave is limited to 40 hours.
The rules above are the core accrual and use terms. Confirm the remaining policy questions with the Connecticut Department of Labor before you write your policy, including carryover from year to year, whether unused hours are paid out at separation, and what documentation you may request for a sick leave absence.
Common Mistakes Employers Make
- Matching the contribution. The 0.5% is employee-paid. Matching it creates a cost you did not need to bear and muddles your records.
- Over-withholding. Withholding past the $922.50 cap for 2026 means the employee has overpaid, and it complicates your remittance.
- Missing a quarterly date. The first deadline of the year is April 30, for wages paid January through March.
- Assuming a small employer is never covered. Employers with 10 or fewer employees are not covered by the sick leave law in 2026, but the 1-employee threshold starts January 1, 2027.
- Treating workers as contractors by default. Classification affects both the contribution and sick leave obligations, so get it right before the first payroll.
Where to Confirm Current Requirements
- Connecticut Paid Leave Authority: ctpaidleave.org. Employer registration, the 2026 rate, the wage base and quarterly remittance through the portal.
- Connecticut Department of Labor: Enforcement questions and the paid sick leave rules under CGS 31-57s, including headcount counting, carryover and documentation.
- Connecticut Department of Revenue Services: portal.ct.gov/drs. Use DRS for state income tax withholding questions. It does not handle paid leave remittance.
- Connecticut Small Business Development Center: ctsbdc.uconn.edu. A useful starting point for small employers that want help setting up payroll processes.
Bottom Line
For 2026, withhold 0.5% of covered wages up to $184,500, which caps the employee contribution at $922.50. Pay the amount withheld with no match, remit it quarterly by April 30, July 31, October 31 and January 31, and register on ctpaidleave.org. Separately, check whether your headcount triggers the paid sick leave law under CGS 31-57s, which covers employers with 11 or more employees now and expands to one or more employees on January 1, 2027.
This guide is informational, not legal or tax advice. If your payroll includes contractors, multiple states, or unusual pay structures, talk with a qualified employment attorney or CPA before you finalize your setup.