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Payroll Cost per Employee in Connecticut 2026 — Total Employer Cost — illustrated 2026 guide
Business · Connecticut

Payroll Cost per Employee in Connecticut

2026 estimates — total employer cost including taxes and benefits

$70,400
Avg salary (CT)
$89,478
Total employer cost/yr

Min wage in Connecticut: $7.25–$15.00/hr (check current state rate) | SUTA: ~3.2% on wages (varies)

Calculate Total Payroll Cost in Connecticut

Payroll Tax Breakdown — Connecticut 2026

Tax / Cost Rate / Rule Annual Amount
Base salary Per agreement $70,400
Social Security (employer) 6.2% on first $168,600 $4,365
Medicare (employer) 1.45% of all wages $1,021
FUTA (federal unemployment) 0.6% on first $7,000 $42
Connecticut SUTA ~3.2% on wages (varies) $600
Benefits (health, 401k, etc) ~18% of salary (typical) $12,672
Total Employer Cost $89,478

Based on $70,400 median salary in Connecticut. SUTA rate shown is approximate average — actual rate depends on claims history. Additional: State-specific payroll taxes — verify with your state labor department.

Payroll Requirements in Connecticut

1. Connecticut Payroll Tax & Compliance Overview

Connecticut payroll costs are above the national average. Key employer requirements: state income tax withholding (4–10%), state unemployment insurance (SUTA: ~3.2% on wages (varies)), plus the standard federal obligations (FICA 7.65%, FUTA up to $420/employee). State-specific payroll taxes — verify with your state labor department.

2. Top Tips for Connecticut Employers

Connecticut employers: use payroll software like Gusto, QuickBooks Payroll, or Rippling to automate state-specific tax calculations. These typically cost $40–$150/month for small businesses — far less than the penalty risk of manual payroll errors. Set up pay-as-you-go workers' comp tied to each payroll run to eliminate audit surprises.

3. Key Connecticut Payroll Facts

  • Minimum wage: $7.25–$15.00/hr (check current state rate)
  • State income tax: 4–10%
  • State unemployment (SUTA): ~3.2% on wages (varies)
  • Additional: State-specific payroll taxes — verify with your state labor department

Run Connecticut Payroll Automatically

Automated payroll software handles Connecticut tax calculations, filings, and W-2s for $40–$150/month.

Payroll Software Cost Comparison — Connecticut 2026

At $7,457/month total employer cost, automating payroll for $70,400 median salary employees costs 27% above base salary. Software adds just 0.1–0.3% but eliminates costly compliance errors.

Software Base Price Per Employee
Gusto Top pick $46/mo +$6/emp/mo
QuickBooks Payroll Core $45/mo +$6/emp/mo
ADP Run Essentials ~$65/mo +$4/emp/mo
Rippling $35/mo +$8/emp/mo

Prices as of 2026. All four platforms handle Connecticut state tax filings automatically. 10-employee team example: Gusto = $106/mo, QuickBooks = $105/mo, ADP ≈ $105/mo, Rippling = $115/mo.

Frequently Asked Questions