Paycheck Calculator Connecticut - CT

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Federal Withholding

State Withholding


Additional Information


Connecticut - CT Paycheck Calculator: Hourly and Salary

Connecticut, a stunning, beautiful, and charming State, is also known by the name Nutmeg State. From scenic mountain ranges to the Long Island shoreline, from Great food & drink to a top-of-the-charts education system, this state offers a lot of reasons for moving to Connecticut.

Considering the healthy career prospects, this state has an unemployment rate of 4.1% and is ranked 41st on a list of best states for jobs, in the United States in 2019 (According to a report by Zippia). Moreover, this Nutmeg State has a Minimum wage of $10.10, which is $2.85 higher than the federal minimum wage.

Apart from all these perks, this state has a higher cost of living, which is above the national average, where Stamford/Norwalk stands as the most expensive county in the State.

So if you are planning to settle in Connecticut and aiming to start your fantastic career as a business person or an employee, then you must know about you are going to pay or earn as a Paycheck.

How to calculate a Paycheck in Connecticut?

To calculate the Take-home pay (Paycheck); that you need to pay as an employer or you will earn as an employee, there are several elements you must consider. These factors include gross pay, federal taxes, state taxes, and many other contributions & deductions. Wherefore, we have researched and compiled all the possible elements and steps into a comprehensive guide along with a state-of-the-art Connecticut Paycheck Calculator to minimize your work significantly.


Connecticut Tax Facts:

  • Connecticut State has the third-highest per capita income among other States in US and has an average salary of $65,870, which is $12000 higher than the U.S. average annual salary.
  • Connecticut follows the progressive state income tax system, having seven tax brackets that range from 3% up to 6.99%. Therefore, the higher the income, the higher the income tax, the individual has to pay.
  • The average household income of a Connecticut resident is $73,781, According to the United States Census Bureau.
  • No city or county in Connecticut charges local income tax.
  • The Minimum wage for Connecticut residents is $10.10, which is significantly higher than the federal minimum wage of $7.25.
  • The minimum cash wage of most of the tipped employees is $9.75, having the maximum tip credit of $0.35.
  • State Unemployment Insurance (SUI) Tax is also required to be paid only by employers, having a tax rate range from 1.9 - 6.8% on a maximum taxable income of $15000. Whereas, New Employer only has to pay 3.40%.

How to calculate Paycheck in Connecticut

To figure Paycheck (Take-home Pay) of an hourly or Salary based employee, working in Connecticut, you must go through several steps. Remember to read the relevant Federal Laws and State Laws provided with most of the steps that would help you to determine the near to actual Paycheck amount.

Step 1: Determine the Pay Type

The first and the foremost step in paycheck calculation is Pay Type, as it plays a vital role in the whole. Usually, employees are paid in two pay types, which are as follow:

  • Hourly Pay Type: Employees on Hourly Pay are paid an hourly rate for each hour they work in a day. They are also entitled to receive overtime and maybe double-time (depending on the State Laws) for each excess hour they work after regular hours. The employer decides the Hourly Rates. However, the minimum wage rate along with Regular Hours, Overtime, and double-time rates & hours are to be determined according to federal and State Laws (which are discussed in detail ahead).
  • Salary Pay Type: Employees on Salary, are paid a fixed amount, for a decided pay frequency (usually semi-monthly or monthly). However, they are not entitled to receive overtime or double time pay by the federal or state law, regardless of how many hours they worked. But the incentives they receive are often more significant versus hourly employees.

Step 2: Determine the Pay Frequency

The second step is to determine the Pay Frequency of your Paycheck; it is how often the employees are paid. All States have their law for pay frequencies. Therefore, you must study the State Payroll law (discussed below in this step) before calculating the paycheck.

Some of the standard Pay Frequencies are:

Pay Frequency Details
Weekly The employees are paid once a week.
Bi-Weekly The employees are paid once every two weeks.
Semi-Monthly The employees are paid twice a month. Usually on the 15th and 30th day of the month.
Monthly The employees are paid once every month. Mostly at the start or end of the month.
Quarterly (Discouraged by Connecticut State) The employees are paid after every three months.
Annually (Discouraged by Connecticut State) The employees are paid once a year.

Connecticut State Laws for Pay Frequencies:

  • Connecticut State Law entitles the employer to pay their employees every week, on a regular payday, as designated by the employer. Moreover, Payday should not be more than eight days after the end of the pay period. However, The Connecticut Department of Labor may permit the employer to reduce the Pay frequency from weekly, upon application. But frequency can't be reduced from more than a month.
  • If the employee voluntarily resigns from the job, then the employer must clear all the dues on the next regular payday. However, if the employee is discharged that he/she is entitled to receive the paycheck on the next business day after termination.

Step 3: Determine the Gross Pay

Once you have determined the Pay type and Pay frequency, it’s time to calculate the Gross Pay of an employee. It is what the employee has earned in the most recent pay period. The gross pay includes several elements, including hourly rate or salary, overtime, bonuses, and commissions, etc. 

Remember that the Gross Pay acts as a critical ingredient in deducing the Federal, State, and Local Taxes as well as other contributions. Therefore, you must calculate the Gross Pay by following the rules and regulations provided by Federal and State Labor Departments (Some of them are discussed ahead in this Step). 

There are two separate methods to calculate Gross pay for each pay type; Hourly and Salary. Both of them are discussed in detail below:

Hourly Employee:

  1. Basic Salary is calculated by multiplying Number of Hours worked in a pay frequency by Regular Hourly Rate.
  2. Overtime pay is calculated according to FLSA law, where every extra hour worked after 8 hours workday or 40-hours in a week, would be counted as Overtime hour that must be paid in time and half of regular hourly rate.
  3. Double Time Pay is a time that an employee is paid in double the regular hourly rate by the employee. It is paid if the employee works on federal holidays. However, their employers are not bound to pay it according to FLSA or Connecticut State law.
  4. Now, to deduce the Gross Pay, we need to add Overtime Pay, Double Time Pay, Bonuses, Commissions, fringe benefits, Vacations Pay, Sick Pay, and Holiday Pay (If Any) into Basic Salary.

Note: We provide multiple calculators to calculate Total Hours Worked and Overtime that you can use to calculate your Paycheck. They are as follow:

Salaried Employee:

  1. To determine the gross salary for the employee, start with the annual salary, and divide it by the number of pay periods to get a basic salary. For example, if the employee’s annual salary is $45500 and is paid once a week, then you must divide 27400/52. Therefore, the employee's basic salary is $527 per week.
  2. Now, add (if any) reimbursements, commissions, bonuses, *fringe benefits, or tips to the basic salary of the employee.
  3. Next, you need to add overtime pay into basic salary, only if the salaried employee has a salary equal to or below $455 a week or $23,660 annually. The FLSA regulates this, and the employee must be paid overtime at the rate of time and half of the hourly rate.
  4. Last, subtract any unpaid time off(s) from the basic salary to get Gross Pay.

*Fringe Benefits:

Fringe benefits are the benefits offered by employers to employees who meet specific criteria set by the company. These benefits are often taxable and can affect the employee's paycheck.

The Fringe benefits are often deducted from employee’s Paycheck by Specific Dollar Amount or Percentage of the Gross Pay.

Some of the common Fringe Benefits are:

  • Health Insurances, including Medical, Dental, and Vision.
  • Individual HSA or Family HSA.
  • Housing, Company Car, and Cell Phone.
  • Gym and Fitness.
  • Student Loan Repayment.

Connecticut State and Federal Laws on Gross Pay:

  • Like most of the states, Connecticut also follows the same overtime law, where an employee must be paid one and half of the regular hourly rate, for every actual hour worked above 40 hours workweek.
  • Exemptions for state overtime law are the same as provided by the Fair Labor Standards Act.
  • The state doesn't require the employer to pay overtime daily, weekdays, or holidays, except if the employer voluntarily does so.
  • The minimum wage for employees working in Connecticut is $10.10 per hour with Maximum Tip credit of $0.35, whereas for federal contractor employees, it is $10.60. Besides, the Minimum Cash Wage for Tipped employees are as follow:
    • $6.38 Cash Minimum wage along with Maximum Tip credit of $3.72 for Tipped hotel or restaurant employees.
    • $8.23 Cash Minimum wage along with Maximum Tip credit of $1.87 for Tipped bartenders only.
  • Minimum Wage for Minors (under 18) can be paid 85% of regular Minimum Wage for the first 200 hours for work, except for Government and Agricultural Employees, who are allowed to be paid 85% for the indefinite period.
  • Employees who are considered exempt under the Fair Labor Standards Act (FLSA) are also exempted from the State minimum wage law.
  • To calculate Hour Worked, Connecticut State Wage Law requires the employer to commute Total Hours Worked to the nearest unit of 15 minutes for each Employee. Moreover, an employer must pay for all hours that an employee is on duty at an assigned workplace or on the employer’s premises, regardless of work is required from an employee or not. This also includes the waiting time for work that an employee spent while on duty.
  • Connecticut labor laws required the employee to receive 30 minutes for lunch (not lunch break) if an employee works for 7.5 hours or more consecutive hours. However, if an employer voluntarily provides a lunch break for 20 minutes or less, then it must be paid.
  • Connecticut State wage law does not prohibit nor require any paid holidays, severance pay, bereavement pay or bereavement leave or sick pay or sick leave.

Step 4: Determine the Filing Status:

Here starts the complicated part. After the Gross Pay for the employee is deduced, the next thing an employer should do is refer to the W-4 tax form of an employee. This form is filled by the employee while joining the job.

Note:

  • The employee has to update his Form W4 if any significant changes come to his/her life. Such considerable changes include marriage, divorce, or child-baby.
  • The employee also has the authority to make a change in his/her form W4, an unlimited number of times, but only once per paycheck.

The form W4 contains all the essential details, including income tax details, marital status, and the number of allowances to be claimed. These details are required to calculate the Taxable Income, Federal Taxes, Allowances, State Taxes, and Local Taxes, that the employer has to withhold from the employee's salary.

Note: As IRS has made changes in the Tax Form W4, which would be effective from January 2020. Therefore, all the following steps are according to the new form.

There is a total of four filing statuses, from which the employee has to choose one. These are the following:

  • Single
  • Married filing separately
  • Married filing jointly
  • Head of Household

Note: You can select "Single" as Marital Status on the Connecticut Paycheck Calculator if the employee is "Single" or "Married filing separately." Else Choose "Married" if the employee is "Married Filing Jointly" or "Head of Household."


Step 5: Calculating the Taxable Income:

Taxable income is the income, which is used to determine the amount of taxes that should be withheld from the employee’s paycheck by the employer. It is different from Gross Pay.

There is the portion of income that is exempted from the taxes, such as cash gifts, inheritances, rebates, Welfare income, child support, State and local tax refunds, Life insurance, etc. This portion can be determined and claimed by the taxpayer (employee) by using "itemized deductions."

As the "itemized deductions" process is too long, the Taxpayer can also go for “standard deductions (a specific amount defined by the government to be deducted from Gross Pay according to taxpayer’s filing status” instead, for calculating the Taxable Income.

Standard Deduction amount for 2018 to 2025 is as follow:

Filing Status Standard Deduction Amount
Single $12,000
Married Filing Separately $12,000
Married Filing Jointly $18,000
Head of Household $24,000
Qualifying Widow(er)s $24,000

To determine the Taxable income, the taxpayer (employee) has to:

  • Subtract any “Standard deductions” or “Itemized deductions” deductions from the Gross Pay.
  • Subtract any “tax exemptions” such as “dependent exemption”

Note: This is just a general overview of Taxable Income. Many other factors need to be considered for Taxable income determination. Moreover, the criteria can be different from person to person. You must refer to your Lawyer, or study Taxable income in detail for calculating the accurate Taxable Income.


Step 6: Subtracting the Pre-Tax Contributions from Taxable Income:

As of now, the taxable income of an employee is deduced. The next step is to subtract any pre-tax contributions that were chosen by the employee. These contributions are designed to encourage employees to save for their retirement. Additionally, it further reduces the amount of taxable income, hence, increasing the take-home amount of an employee.

However, not all contributions are exempted from all taxes, but only from federal income tax. Therefore, some employees may have to pay FICA, state, or other taxes on such contributions.

Following are some of the common contributions that an employee can choose:


  1. Traditional 401(k) or 403(b) or other qualified retirement plans
  2. traditional IRA - Individual Retirement Accounts
  3. Solo 401(k), SEP-IRA or SIMPLE IRA
  4. healthcare savings account (HSA)
  5. Dental Insurance
  6. Vision Insurance
  7. Commuter Benefits including commuter parking, commuter transit, and commuter benefits
  8. Health Insurance
  9. Dependent care FSA contributions

Step 7: Deducing the Number of Federal Allowances:

Before jumping on to Federal Taxes, it is essential to conclude the number of Allowances that an employee needs to claim.

Allowances are exemptions from paying a certain amount of income tax. Therefore, the amount of withholding tax that an employer withholds from the employee’s paycheck is inversely proportional to the number of allowances claimed.

General Number of Allowances a Taxpayer (Employee) must Claim
Situation Number of Allowances to claim
The taxpayer depends on someone 0 to 1 Allowance
Single – One Job – Taxpayer doesn't depend on anyone 1 to 2 Allowances
Married Couple with no dependents 2
Head of Household with one dependent 3
A married couple with one dependent 3
A married couple with two dependent 4

Effects of Allowances on Federal Taxes

The employee in form W4 already fills details of claimed allowances. The employee must do a complete working before filling out the details for the number of allowances he/she needs to claim as claiming extra Allowances may cause underpayment of taxes that results in a penalty by the IRS. On the other hand, claiming fewer Allowances is like lending money to IRS without any benefit.

Effects of Allowances on Federal Taxes
Situation Effects on Federal Withholding Taxes Consequences
To many Allowances claimed · Withholding Federal Tax decreases
· Take-Home Pay Increases
· The taxpayer may owe money to IRS
· Tax Payer has to pay the pending tax amount along with penalties
Too few Allowances claimed · Withholding Tax Federal increases
· Take-Home Pay decreases
· IRS may owe money to the taxpayer, for which
· Tax Payer is likely to receive a refund
· Tax Payer may have less money to spend the whole year until the refund is received

Details on how many allowances an employee must claim are provided on main paycheck calculator for USA.


Step 8:  Subtracting the Federal Taxes

Once the final taxable income is calculated after subtracting all deductions (standard or itemized) and contributions, a certain amount is withheld by the employer from an employee's paycheck as federal income tax, along with two federal (FICA) programs: Social Security and Medicare.


Federal Income Taxes

This Federal Income Tax rate is applied at a gradual level, ranging from 0% to 37% of taxable earnings. The Tax rate depends on the filing status, number of Allowances claimed, and taxable income.

Therefore higher the income, the higher the federal tax rate, and the higher the number of Allowances claimed, the higher the Net Pay (Take-home Pay).

These rates are as follow:

Single Filers
Taxable Income Rate
$0 - $9,525 10.0%
$9,525 - $38,700 12.0%
$38,700 - $82,500 22.0%
$82,500 - $157,500 24.0%
$157,500 - $200,000 32.0%
$200,000 - $500,000 35.0%
$500,000+ 37.0%

Married, Filing Jointly
Taxable Income Rate
$0 - $19,050 10.0%
$19,050 - $77,400 12.0%
$77,400 - $165,000 22.0%
$165,000 - $315,000 24.0%
$315,000 - $400,000 32.0%
$400,000 - $600,000 35.0%
$600,000+ 37.0%

Married, Filing Separately
Taxable Income Rate
$0 - $9,525 10.0%
$9,525 - $38,700 12.0%
$38,700 - $82,500 22.0%
$82,500 - $157,500 24.0%
$157,500 - $200,000 32.0%
$200,000 - $500,000 35.0%
$500,000+ 37.0%

Head of Household
Taxable Income Rate
$0 - $13,600 10.0%
$13,600 - $51,800 12.0%
$51,800 - $82,500 22.0%
$82,500 - $157,500 24.0%
$157,500 - $200,000 32.0%
$200,000 - $500,000 35.0%
$500,000+ 37.0%

FICA Taxes (Social Security and Medicare):

In addition to the Federal Income Tax, Employers are also abided to withhold an amount from the employee’s paycheck for FICA Tax (Federal Insurance Contributions Act). These taxes are used to help American citizens with retirement, disability, survivorship, and medical treatment.

FICA Tax comprises of:

  1. Social Security Tax

A total of 12.4% of FICA tax is paid for Social Security, by both employee and employer. Here 6.2% is paid by the employee and remain 6.2% is funded by the employer. However, the Social Security tax is only applicable to the first $132,900 (in 2019) earned. No amount is charged above this earning,

  1. Medicare Tax

1.45 percent each is paid to Medicare by both employee and employer. Moreover, if the taxpayer (employee or employer) earns more than $200,000 as a single filer or $250,000 as a married couple than additional Medicare taxes of 0.9% are to be paid.


Note: If you are calculating your federal taxes as an employer, you have to add FUTA unemployment taxes in addition to FICA taxes, which is 6% of the first $7,000 of each employee’s taxable income. Moreover, you can also claim a tax credit of up to 5.4% for state unemployment tax you pay, only if you pay on time and in full.


Connecticut State Laws on Federal Income Tax:

  • If an employee has received a refund of all federal income tax, due to zero liability, in the previous tax year, and is expecting to receive a refund of all your income tax withholdings because employee will have no tax liability this year than, the employee is exempted from paying federal tax, According to IRS.
  • If you are confused about whether you are exempted from federal withholding tax or not, you can use these worksheets or this flowchart provided by the IRS to help you decide.

Step 9: Subtracting State Taxes:

As you are done with Federal Taxes, now it's time for Connecticut State Payroll Taxes. Both Employer and Employee must pay these taxes. However, it's the employer's responsibility to withhold it from the employee for the State. Below are the Payroll Taxes:

Connecticut State Withholding Tax:

Connecticut State charges a variable rate, with seven tax brackets, ranging from 3% - 6.99%, for state withholding that depends on the income and filing status. The State requires the employer to withhold it from the employee's gross pay and details provided by the employee in Form CT-W4.

What is Connecticut's state tax rate?
Single Filers
Alabama Taxable Income Rate
$0 - $10,000 3.00%
$10,000 - $50,000 5.00%
$50,000 - $100,000 5.50%
$100,000 - $200,000 6.00%
$200,000 - $250,000 6.50%
$250,000 - $500,000 6.90%
$500,000+ 6.99%

Married, Filing Jointly
Alabama Taxable Income Rate
$0 - $20,000 3.00%
$20,000 - $100,000 5.00%
$100,000 - $200,000 5.50%
$200,000 - $400,000 6.00%
$400,000 - $500,000 6.50%
$500,000 - $1,000,000 6.90%
$1,000,000+ 6.99%

Married, Filing Separately
Alabama Taxable Income Rate
$0 - $10,000 3.00%
$10,000 - $50,000 5.00%
$50,000 - $100,000 5.50%
$100,000 - $200,000 6.00%
$200,000 - $250,000 6.50%
$250,000 - $500,000 6.90%
$500,000+ 6.99%

Head of Household
Alabama Taxable Income Rate
$0 - $16,000 3.00%
$16,000 - $80,000 5.00%
$80,000 - $160,000 5.50%
$160,000 - $320,000 6.00%
$320,000 - $400,000 6.50%
$400,000 - $800,000 6.90%
$800,000+ 6.99%

Connecticut State UI or SUTA/SUI:

Connecticut State requires the employee to pay an Unemployment (UI) Tax Annually, on a percentage of all wages paid to employees in a year. This tax has a wage base of $15000 (in 2019) with a rate range from 1.9 - 6.8%, except for new employees who are charged a standard rate of 3.40%. However, this percentage changes each year.


Quick Tip

Taxpayers can increase the take-home pay by claiming the accurate number of allowances on Connecticut State Tax. Moreover, they can further reduce the tax bill by subtracting Standard or Itemized deductions from the taxable income.


Connecticut State Laws on State Income Tax:

  • Employees are required to fill the correct details in Form CT-W4. The details in the form along with Gross Pay will then be used to determine the amount that the employer's need to withhold from the employee's paycheck as State Income Tax.
  • There is No Provision defined for Supplemental Wage/Bonus Rate on State Income Tax by Connecticut State Law.
  • To calculate State Income Tax that is to withhold from employee's paycheck and to be paid by the employer, the Connecticut State as published a comprehensive guide that you are suggested to read.
  • An employer must pay the state SUI in full and on time, to get a 90% tax credit on FUTA.
  • Connecticut State doesn’t charge a Disability Insurance Tax on Employees.
  • No city or county in Connecticut charges local income tax.

Step 10: Subtracting the Post-Tax Deductions and Contributions

Although employees are not charged any post-tax deductions. However, they can choose some post-tax contributions and benefits. If an employee has opted some, then its employer's duty to account them into the employee's paycheck.

Some of the common Post-Tax Contributions are:

  • Retirement funds like Roth 401(k).
  • A certain amount may also be withheld by the employer from the employee's paycheck as Wage Garnishments if the employee is subjected to any court-ordered garnishments.
  • Contributions to 529 college savings plans, Union dues or charitable donations.

Step 11: Calculating Paycheck

Once you have calculated all the details, as discussed above, then it's time to enter all your details into our Connecticut Paycheck Calculator and deduce the paycheck “Net Pay” amount instantly.


FAQs

Answer: The percentage that Connecticut (CT), take or withhold from the paycheck as State Income Tax, ranges from 3% - 6.99%, based on seven tax brackets depending on income and filing status. If you are filing as Single, Married & filing separately, the state withholding tax rate is 3% on taxable income for those having income of $10,000 or less; 5% for up to $50,000 income; 5.5% for up to $100,000 income; 6% for up to $200,000 income; 6.5% for up to $250,000 income; 6.9% for up to $500,000 income and 6.99% for over $500,000 income.

Moreover, If you are filing as “married & filing jointly," then income rates get doubled while the tax rates remain the same. However, Income rates for filing status "Head of Household" are higher than the Single but lower than the "married & filing jointly."

Answer: Connecticut State follows the progressive income tax system for payroll that ranges from 3% to 6.99%, depending on how much money you make.

Answer: In Connecticut, Supplemental Wages earned by an employee like Bonuses are taxes equally as regular wages at the tax ranges from 3% to 6.99%.

Answer: Minimum Wage for Connecticut Residents is $10.10, and for most of the Tipped employees is  $9.75 with the Maximum Tip Credit of $0.35.

Answer: The Average Hourly wage in Connecticut ranges from $17 to $18.

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