Industry Standard Employer-of-Record Services in Connecticut
Want to hire top talent in Connecticut without handling payroll, legal compliance, and administrative tasks? You’ve come to the right place. HR Options provides dedicated employer-of-record services to streamline the hiring process and handle all HR complexities. With in-depth knowledge of state employment laws, we help you stay compliant and reduce legal risks.
Backed by years of experience, our specialists can manage every aspect of the employment process, from talent acquisition to seamless onboarding, so you can focus on growing your business. Our intuitive online platform provides real-time updates and transparent reporting to help you make informed decisions. Contact us today to build a winning team and drive your business forward!
Simplify Workforce Management with Connecticut’s Trusted HR Services
Managing the hiring processes and employment logistics can be complex for any business, but our EOR experts make it easier. Our personalized employer-of-record solutions help businesses of all sizes by handling the entire recruitment process. Whether you’re looking for temporary staff or a long-term team, we can manage every aspect. Our comprehensive HR solutions include:
- On-boarding
- Off-boarding
- Payroll Processing
- Tax compliance
- Timesheet collection
- Handling W-2 and 1099 forms
- Employee relations & HR support
- Other aspects of the employment cycle
Valuable Benefits for Employees in Connecticut
At HR Options, we create competitive benefits packages that help businesses attract and retain top talent. A valuable employer of record plan makes employees feel valued and motivated. Our experts collaborate with your business to create a customized package that aligns with your goals and policies to ensure a supportive and rewarding workplace for employees. Depending on your organization’s policies, our benefits packages may include:
- Life Insurance
- Medical Insurance
- Vision Insurance
- Dental Insurance
- Long-Term Disability Insurance (LTD)
- Health Savings Account (HSA)
- Flexible Spending Account (FSA)
- Pension or 401(k) Retirement Plans
Essential Employment Information for Connecticut
Looking for reliable employer-of-record services in Connecticut? Here’s some essential employment information we think you should know:
What Is the Minimum Wage Rate in Connecticut?
As of January 1, 2025, Connecticut’s minimum wage is $16.35 per hour, with annual adjustments tied to the federal Employment Cost Index (ECI) to keep wages aligned with labor costs and economic conditions. This change positions Connecticut among the states with the highest minimum wages in the country.
What Is Considered Full-Time Employment in Connecticut?
In Connecticut, full-time employment typically means working 35 or more hours per week, though definitions can vary. According to the Affordable Care Act (ACA), employees working 30 or more hours per week are full-time employees. Some employers may set their own policies, so employees should review company regulations for full-time status, benefits eligibility, and overtime to ensure clarity.
What Is Considered Part-Time Employment in Connecticut?
In Connecticut, part-time employment generally applies to roles with fewer than 35 hours per week. Part-time employees may not receive benefits like health insurance or retirement plans, but some companies offer flexible schedules or pro-rated benefits to attract and retain workers. Employees should check with their employers to understand policies.
While part-time employees may not always qualify for benefits such as health insurance or retirement plans, some companies offer perks like flexible scheduling or pro-rated benefits to attract and retain talent. Employees can review their employer’s policies to understand eligibility for benefits.
How Do Employees Get Paid Overtime in Connecticut?
Connecticut follows the federal Fair Labor Standards Act (FLSA), which requires employers to pay 1.5 times the regular hourly rate for any hours worked beyond 40 per week. Certain positions may be exempt from overtime based on job type or industry. Employees should review their employer’s overtime policies to ensure they receive proper compensation for additional hours worked.
How Long Does Onboarding Take in Connecticut?
In Connecticut, our onboarding process usually takes 2 business days once we have all the necessary information. For non-U.S. citizens, work eligibility checks may take up to 3 extra days. Our EOR specialists aim to simplify the process for all businesses.
What Is the Payroll Cycle in Connecticut?
Connecticut law requires employers to pay employees weekly unless they receive approval from the state’s labor commissioner to pay less frequently. For remote employees, payments are typically made twice per month in equal installments. Employees are typically paid on the 15th and last day of the month. When applicable, employers include bonuses, commissions, and expense reimbursements in the second payment.
- Have at least 25 employees
- Have operated for at least two years
- Do not already offer a qualified retirement plan
Employers who fail to enroll employees in a retirement plan face a $200 fine per employee per year. RetirePath Virginia automatically deducts a portion of employees’ wages into an IRA to help them save for retirement.
Are Employers Required to Offer 401(k) in Connecticut?
Yes. Employers in Connecticut must offer their employees a retirement savings plan. Businesses can set up qualified savings plans or enroll employees in the state-sponsored MyCTSavings Program.
This program applies to businesses that:
- Have at least five employees
- Do not already offer a qualified savings plan
Employers must ensure compliance with state retirement plan regulations to support their workforce’s financial future.
Are Employers Required to Provide Health Insurance in Connecticut?
Under the federal Affordable Care Act (ACA), employers with 50 or more full-time employees must offer qualified health insurance. Many businesses also offer supplemental health insurance options to ensure employees can access routine care and emergency coverage. As a trusted employer-of-record service provider, we ensure all employees get the same benefits to maintain fair hiring practices.
Details of New Hire
Paperwork Requirements in Connecticut
Hiring employees in Connecticut requires employers to collect essential documents to comply with state and federal regulations. These forms ensure proper onboarding and legal compliance. Here are the required documents:
Employment Eligibility Verification (Form I-9)
Employers obtain this federal form to verify the new hire's identity and eligibility to work in the United States. They must complete it within three days of the new employee’s start date.
Employee’s Withholding Certificates (Form W-4)
Employers must collect these forms to determine the correct amount of federal income tax to withhold from an employee’s paycheck.
Connecticut Withholding Certificate (Form CT-W4)
This form is necessary for employers to calculate the correct amount of state income tax to withhold from paychecks.
New Hire Reporting
Employers must report all new hires and rehires to the Connecticut Department of Labor within 20 days of the employee's start date. This report should include the employee’s full legal name, date of birth, address, start date, and social security number.
Wage and Tax Statement (Form W-2)
Employers must file form W-2 for each employee and submit it to the IRS.
Local Requirements
Follow additional paperwork requirements for new hires in Flagstaff.
Additional Recommended Documents
Direct Deposit Form
If a company offers direct payroll deposits, this form helps employees provide their banking information for seamless payments.
Personal Information Form
This form contains emergency contacts and other necessary personal details of employees.
Job Offer and Description
It provides the employee with a written copy of the job offer and a detailed job description.
FICA Taxes (Social Security & Medicare)
Employers and employees pay half of these taxes under the Federal Insurance Contributions Act (FICA).
Unemployment Taxes
Employers must pay state and federal unemployment taxes based on a percentage of the employee’s wages.
Confidentiality and Non-compete Agreements
These agreements are applicable, especially in industries involving sensitive information or intellectual property.
Employment Taxes in Connecticut
Employment taxes and statutory fees affect Connecticut employees’ overall payroll. Here’s a clear breakdown of known taxes in this state:
Employer Taxes
| Employment Tax | Tax Percentage |
|---|---|
| FICA (Medicare) | 1.45% |
| FICA (Social Security | 6.2% |
| State unemployment insurance tax (SUTA) | 1.1% to 8.9% |
| Federal unemployment insurance tax (FUTA) (charged on the first $7,000 earnings per year of an employee) | 6% |
Employee Taxes
| Tax Type | Tax Percentage |
|---|---|
| FICA (Medicare) | 1.45% |
| FICA (Social Security | 6.2% |
| Federal income tax | 10% to 37% |
| State income tax | 2% to 6.99% |
Important Leave Laws in Connecticut
| Leaves Title | Law |
|---|---|
| Sick Leave | Connecticut employers with 25 or more employees must provide paid sick leave to their employees. |
| Bereavement Leave | Connecticut does not require employers to provide bereavement leave. Employers may offer paid or unpaid leave based on company policies. |
| Blood/Bone Marrow/Organ Donation Leave | All employers must provide leave for employees donating blood, bone marrow, or organs. |
| Crime Victims' Leave | Employees who are crime victims can take leave to attend court proceedings. This law applies to all employers. |
| Court Attendance/Witness Leave | All employers must allow employees to take leave if they serve as witnesses in a criminal proceeding. |
| Domestic/Sexual Violence Victims' Leave | NoEmployees affected by domestic violence or sexual assault can take leave under the related law. state law requires leave for victims of domestic violence, sexual assault, or stalking. Employers can provide leave to support affected employees. |
| Election Officials' Leave | No state law requires employers to grant leave for election officials. Employers may choose to provide time off based on company policies. |
| Family and Medical Leave | All employers must provide 12 weeks of job-protected leave for eligible employees under Family and Medical Leave Act (FMLA). Employees must work for at least 12 months and log more than 1,250 hours in the previous year. The law applies to employers with 50 or more employees within a 75-mile radius. |
| Family Military Leave | No state mandate exists for family military leave. Some employers provide leave to support employees with military family obligations. |
| Jury Duty Leave | Under the state law, employers must allow employees to serve on jury duty. They cannot penalize or terminate employees for fulfilling their civic duty. |
| Legislative/Political Leave | Employers with 25 or more employees must provide leave for employees involved in legislative duties or serving as elected officials. |
| Military Service/Veterans' Leave | All employers must provide leave for military service and Civil Air Patrol duty, with job reinstatement upon return. |
| School Activities/Visitation Leave | Connecticut does not require employers to provide leave for school-related activities or parental visitation. |
| Volunteer Emergency Responder Leave | All employers must grant leave for employees serving as volunteer emergency responders. |
| Voting Leave | This state does not mandate voting leave, but employers may choose to provide time off. |
| Pregnancy Disability Leave | Employers with at least one employee must offer leave for pregnancy-related disabilities. |
Comprehensive Employment Termination Details
Probation Period
In Connecticut, no state law requires a probation period for new employees. However, many employers implement probationary periods to assess an employee’s performance and suitability. These periods typically range from 3 to 6 months, depending on the company's policies.
Termination Process
Connecticut follows the "at-will" employment rule, which means either employee or employer can terminate the employment with or without cause. However, employers must ensure that terminations are not discriminatory or retaliatory, as the law protects employees from unjustified termination. Our EOR service professionals at HR Options can assist you in managing the termination process to reduce the risk of legal disputes.
Notice Period
Employers or employees are not legally required to give notice before ending employment unless specified in a contract. However, it is common practice for employees to offer a two-week notice period when resigning.
Severance and Final Pay
In Connecticut, severance pay is not a law unless mentioned in an employment contract or company policy. However, employers must pay any unused vacation or paid time off (PTO) as outlined in the employee’s contract or company policy.
New Hire Reporting
Employers must report all new hires and rehires to the New York Department of Taxation & Finance within 20 days of the employee's start date. This report should include the employee’s full legal name, date of birth, address, start date, and social security number.
Local Requirements
Follow additional paperwork requirements for new hires in Flagstaff.
Which Laws Apply to Your Organization?
In the United States, each state has its own laws governing the relationship between employers and employees. Businesses must comply with these regulations to ensure security and avoid penalties. At HR Options, our EOR specialists help you navigate and adhere to state and federal employment laws that apply to your organization. Here are some of the key regulations that may affect your business in Connecticut:
| Law | Applies To | Description |
|---|---|---|
| Connecticut Fair Employment Practices Act (CFEPA) | Employers with 3+ employees | It prohibits discrimination based on race, color, religion, sex, age, disability, national origin, and other protected characteristics. |
| Equal Pay Act | All employers | This act requires equal pay for men and women performing similar work. However, exceptions are allowed for seniority or merit systems. |
| Pay Transparency Law | Employers with 1+ employees | Under this law, employers can disclose salary ranges in job postings to promote pay equity. |
| Minimum Wage Law | All employers | Sets Connecticut’s minimum wage, which is adjusted annually based on the Employment Cost Index (ECI). |
| Overtime Pay Law | All employers | Requires overtime pay at 1.5 times the regular rate for nonexempt employees working over 40 hours per week. |
| Paid Family and Medical Leave (PFMLA) | Employers with 50+ employees | Provides up to 12 weeks of paid leave for serious health conditions, bonding with a child, or caring for a family member. |
| Pregnancy Disability Leave | Employers with 1+ employees | Requires reasonable accommodations, including leave, for pregnancy-related conditions. |
| Wage Theft Prevention Act | All employers | Protects workers from wage theft by ensuring timely and accurate payment of wages. |
| Workers' Compensation Law | Employers with 1+ employees | Provides compensation for employees who suffer work-related injuries or illnesses. |
| Meal Breaks Law | Employers with non-exempt employees | In Connecticut, employers must provide a 30-minute unpaid meal break to employees who work 7.5 or more consecutive hours, which must occur after the first two hours and before the last two hours of the shift. |
| Jury Duty Leave Law | All employers | This law prohibits employers from penalizing employees for serving on jury duty. |
| Right to Organize | Employers with a unionized workforce | According to this law, employees can organize and join a union, collectively bargain, and participate in labor actions without retaliation. |
| Occupational Safety and Health Act (OSHA) | All employers | Requires employers to maintain a safe workplace by eliminating health hazards and ensuring employee safety, with strict state-level regulations in Connecticut. |
| Clean Indoor Air Act | All employers | This act prohibits smoking in enclosed public spaces and workplaces to ensure a clean and safe environment. |
| Crime Victim Leave Law | All employers | Provides unpaid leave for employees who are victims of crime to attend legal proceedings. |
| All employers | Employers with 25+ employees | Accrues sick leave at 1 hour per 30 hours worked, with up to 40 hours for each calendar year. |
| Personnel Files Act | All employers | Grants employees the right to inspect and copy their personnel files upon request. |
| Drug Testing Law | All employers | Regulates the circumstances under which employers may require drug testing of employees and applicants. |
| Ban the Box Law | All employers | Prohibits employers from inquiring about a prospective employee's prior arrests, criminal charges, or convictions on an initial employment application, with certain exceptions. |
| Whistleblower Protection Law | All employers | Protects employees from retaliation for reporting illegal activities or unsafe practices. |
| Social Media Privacy Law | All employers | Prohibits employers from requesting or requiring employees or applicants to provide passwords or access to personal social media accounts. |
Want to Streamline Your Hiring Process?
Contact our HR specialists for the most reliable employer-of-record services and HR solutions to hire top talent and grow your business.