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REMOTE EMPLOYEES

Hiring a remote employee in Connecticut

Your company is in another state and one employee lives and works from home in Connecticut. Which state's taxes apply, unemployment, paid leave and Connecticut's employer rules, each with its official source.

Facts from the official sources listed at the end of this page; the oldest was read from an archived copy dated July 17, 2026. For employers. General information, not legal or tax advice: confirm a rule with the agency before you rely on it.

Connecticut at a glance

Income tax
Connecticut withholding
Reciprocity
None
Unemployment
$27,000 wage base, 1.9% new employer
Paid leave
CT Paid Leave
New hire report
Within 20 days

Which state's taxes apply

Work state
Connecticut taxes wages for work done in Connecticut. Withhold Connecticut income tax on the employee's wages.Source: DRS, IP 2026(1), Connecticut Employer's Tax Guide, Circular CT (PDF) (opens in a new tab), checked October 5, 2026
Withholding form
Form CT-W4Source: DRS, IP 2026(1), Connecticut Employer's Tax Guide, Circular CT (PDF) (opens in a new tab), checked October 5, 2026
Reciprocity
No state exempts Connecticut residents from its withholding by reciprocity.Source: DRS, 2026 Withholding Tax Information (opens in a new tab), checked October 5, 2026
Convenience rules
If your company is in Delaware, New York or Pennsylvania, the employee is assigned to an office there and works there on some days, that state taxes the days worked from home in Connecticut for the employee's convenience.Source: Delaware Division of Revenue, 2025 Form PIT-NON Instructions, Non-Resident Individual Income Tax Return (PDF) (opens in a new tab), checked October 6, 2026; NYS DTF, TSB-M-06(5)I, New York Tax Treatment of Nonresidents and Part-Year Residents: Application of the Convenience of the Employer Test to Telecommuters and Others (May 15, 2006, PDF) (opens in a new tab), checked October 6, 2026; PA Department of Revenue, PA Personal Income Tax Guide, Gross Compensation (opens in a new tab), checked October 6, 2026
Office days in your company's state
That state's day limit, if it has one, decides whether it withholds on those days: see its page, or the helper below.
An employee from another state working in Connecticut
Connecticut has a 15-day rule: no Connecticut withholding for a nonresident who works in Connecticut 15 days a year or fewer, if the rule's other conditions are met.Source: Connecticut DRS, IP 2026(1), Connecticut Employer's Tax Guide, Circular CT (PDF) (opens in a new tab), checked October 6, 2026

Where to withhold: two states

Pick your company's state, the state where the employee lives and works from home, and the days a year the employee works at your office. The answer reads each state's rules from the data on these pages.

Your company is in
Employee lives and works from home in
Days a year at your office
Assigned to an employer office in New YorkMatters only in the states with a convenience rule (Connecticut, Delaware, New Jersey, New York and Pennsylvania), and only with office days there.

Income tax withholding

  • Connecticut: all wages.

No New York withholding: the employee does no work in New York.

Unemployment

Connecticut: the employee works from home there, so the work is localized in Connecticut.

Simplified: resident credits, dollar tests, local taxes and a move during the year are not worked out here. Each state's rule and its source are on its page.

Unemployment

The employee works from home in Connecticut, so the work is localized in Connecticut: pay Connecticut unemployment tax, not your company state's.

Agency
Connecticut Department of Labor (CTDOL), Unemployment Insurance TaxSource: CTDOL, Unemployment Insurance Tax (opens in a new tab), checked October 5, 2026
Wage base
$27,000 IndexedSource: CTDOL, Information on Unemployment Tax Rate for Calendar Year 2026 (opens in a new tab), checked October 5, 2026
New employer rate
1.9% 1.9% in 2026: the higher of 1% or the state's five-year benefit cost rate Surcharges includedSource: CTDOL, Information on Unemployment Tax Rate for Calendar Year 2026 (opens in a new tab), checked October 5, 2026

Open the account: Connecticut payroll tax registration

CT Paid Leave (opens in a new tab)

Status
ContributingSource: CT Paid Leave Authority, Contributions (opens in a new tab), checked October 5, 2026
Total rate
0.5%Source: CT Paid Leave Authority, Contributions (opens in a new tab), checked October 5, 2026
Employee share
0.5%Source: CT Paid Leave Authority, Contributions (opens in a new tab), checked October 5, 2026
Employer share
NoneSource: CT Paid Leave Authority, I am an Employer (opens in a new tab), checked October 5, 2026
Small employers
NoneSource: CT Paid Leave Authority, Coverage and Eligibility (opens in a new tab), checked October 5, 2026

Register before the first payroll: the steps are on Connecticut payroll tax registration.

Connecticut employer rules

Employment law applies where the employee works, so these follow the employee into Connecticut.

Final pay
Fired: By the next business day after discharge Quit: By the next regular paydaySource: Connecticut General Statutes §31-71c, Payment of wages on termination of employment (opens in a new tab), read from an archived copy dated July 17, 2026 (opens in a new tab)
Pay frequency
Weekly or once every two weeks on a regular payday set in advance; the pay period may end no more than 8 days before payday.Source: Connecticut General Statutes §31-71b, Payment of wages (opens in a new tab), read from an archived copy dated July 17, 2026 (opens in a new tab)
Pay notice
In writing at hire: rate of pay, hours of employment and wage payment schedule. Changes to wage, vacation, sick leave and benefit policies must be made available in writing or by a posted notice.Source: C.G.S. 31-71f (Connecticut General Statutes, chapter 558) (opens in a new tab), checked October 5, 2026
New hire reporting
Within 20 days of the date of hire.Source: C.G.S. 31-254(b) (Connecticut General Statutes, chapter 567) (opens in a new tab), checked October 5, 2026
E-Verify
No state E-Verify mandate for private employersSource: CT General Assembly, General Statutes (2026), section-text search: "E-Verify" (opens in a new tab), checked October 5, 2026
Sick leave
Paid sick leave required, from 11 employees, counted in Connecticut. Paid sick leave required, from the first employee, from January 1, 2027.Source: C.G.S. 31-57s (Connecticut General Statutes, chapter 557) (opens in a new tab), checked October 5, 2026

When the employee moves

Re-check the work state and the registrations before the next payroll: a move changes which state's withholding, unemployment, paid leave and employer rules apply.

Registering your business in Connecticut, and whether one remote employee creates tax nexus for your company, are separate questions this page does not cover.

More on Connecticut

WORKLIO HCM

Payroll for employees who work from home in another state

Worklio HCM withholds by home and work state, reciprocity included, and handles city and county taxes. We help open state withholding and unemployment accounts when you hire somewhere new, and our registration service can register your employer tax accounts for you. Taxes are calculated, deposited and filed in every state and locality, and when an agency notice arrives, you upload it and our tax team resolves it. State paid leave contributions are withheld, too.

Remote employees in other states

Sources

The agency page or document behind each fact, as checked.

General information, not legal or tax advice. Rules change; confirm current requirements with the relevant agency or your advisor. You remain responsible for your employment taxes and for each state's rules.

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