Nanny Taxes & Payroll in Connecticut

Minimum Wage

Household employees must be paid at least the highest applicable federal, state, or local minimum wage rate. Connecticut’s minimum wage rate of $16.94/hour applies.

Overtime Pay Rules

Household employees in Connecticut are required to be paid at least time and a half for hours worked over 40 in a seven-day workweek. Overtime compensation is not required for live-in employees or when work is performed on a holiday.

State Unemployment Tax & Rate

In Connecticut, the new employer SUI (state unemployment insurance) rate is 1.9 percent on the first $27,000 of each employee’s wages. Employers with previous employees may be subject to a different rate. This is an employer-only tax.

Workers’ Compensation Insurance

Household employers in Connecticut are required to have a workers’ compensation policy for any household employee who works 26 hours or more per week. Get a quote on workers’ compensation insurance.

Disability Benefits Insurance

Connecticut does not have disability benefits insurance requirements related to household employment.

Domestic Workers’ Bill of Rights

Connecticut does not have a domestic workers’ bill of rights.

Paid Leave Laws

Paid Family and Medical Leave Program

Household employees can now take benefits under Connecticut’s Paid Family and Medical Leave program. The program provides paid leave for life events, including the worker’s own serious health concern; care for a child after birth, adoption, or foster placement; and care for a seriously ill or injured family member, among other reasons. The payroll deduction is 0.5% of wages. A household employee, such as a nanny, earning $500/week, would likely see a $2.50 pre-tax deduction on their paycheck. There is no employer contribution to the program. However, household employers must remit employee contributions on their behalf to the Connecticut Paid Leave Authority. Learn more about the process for employers.

Household employees can take up to 12 weeks of partially paid time off for qualifying events.

Information on paid leave to share with your employees.

Other State Regulations

Connecticut Fair Employment Practices Act

The Connecticut Fair Employment Practices Act (CFEPA) prohibits employers with one or more employees from discriminating on the basis of protected characteristics, including:

• Race (including hairstyle and other ethnic traits historically associated with race)
• Color
• Ancestry
• National origin
• Religion
• Pregnancy (including breastfeeding and related medical conditions)
• Disability (physical, mental, intellectual, and learning)
• Genetic information
• Age
• Gender (including transgender status, gender identity, and expression)
• Sexual orientation
• Marital or civil union status
• Status as a victim of domestic violence, sexual assault, or human trafficking

The CFEPA also prohibits retaliation against a person who opposes, reports, or assists another person in opposing unlawful discrimination.

Connecticut Pay Frequency

Connecticut law generally requires employers to pay employees on a weekly or biweekly basis. Longer pay intervals, such as monthly, are allowed only if specifically authorized by the Connecticut Labor Commissioner. If you wish to pay your employee on a longer than biweekly basis, complete this waiver on the Connecticut Department of Labor website. It’s an electronic form submitted to the state for review and approval.

Pay Transparency Law

Connecticut’s pay transparency law applies to all employers within the state with one or more employees. The law also applies to employers within the state, even if their employees are located outside the state’s physical boundaries. This could apply to a Connecticut family that employs staff at a second home, vacation home, estate, or other location outside the state.

The law requires an employer to disclose the “wage range” it anticipates relying on when setting wages for a position. According to the law, this may include reference to:

• Any applicable pay scale;
• Any previously determined range of wages for the position;
• Actual range of wages for current employees holding comparable positions; or
• The amount budgeted by the employer for the position

An employer must provide wage range information to an applicant upon the earliest of:

• The applicant’s request, or
• Prior to or at the time the applicant is made an offer of compensation.

An employer must also provide an employee with the wage range for the employee’s position upon:

• The hiring of the employee;
• A change in the employee’s position; or
• The employee’s first request for a wage range

An applicant or employee may file a civil action within two years of the date on which the alleged violation occurred for compensatory damages, attorney’s fees and costs, punitive damages, and other relief. While the state may be unable to seek damages for the applicant or employee, it may issue a civil penalty against the employer if a violation is found.

Helpful Links for Nanny Taxes in Connecticut

• Connecticut Department of Labor
• Connecticut Department of Revenue Services

Federal Regulations

All household employers need to follow certain federal regulations, including:

Fair Labor Standards Act (FLSA) Classification Guidelines

• Household workers are considered employees and not independent contractors. Learn more about misclassifying employees as independent contractors.
• Household workers are also non-exempt employees, meaning they receive at least time-and-a-half for hours worked over 40 per workweek. Learn more about overtime pay.

FICA Taxes

Social Security and Medicare taxes are commonly referred to as FICA taxes.

If you pay cash wages of $3,000 or more to any household employee in 2026 (or paid a domestic worker $2,800 or more in 2025), you must withhold and pay FICA taxes. FICA taxes are 15.3 percent of cash wages.

As an employer, you pay 7.65 percent (6.2 percent for Social Security and 1.45 percent for Medicare).

Your employee's share is also 7.65 percent, which you may withhold from their wages or pay yourself.

You don't withhold or owe FICA taxes on wages you pay to your spouse, child under the age of 21, parent, or any employee under 18 at any time during the calendar year.

Federal Unemployment Tax (FUTA)

If you pay a household employee total cash wages of $1,000 or more in any calendar quarter, you'll owe federal unemployment tax. This is an employer-only tax. FUTA is 6% of cash wages on the first $7,000 of wages paid to an employee.

Mileage Reimbursement

If your employee uses their own car in the course of their work, you can reimburse them for mileage. For 2026, the IRS has set the optional standard mileage rate at 72.5 cents per mile driven. Paying mileage is not mandatory in most states, and you can reimburse your employee at a different rate. However, if mileage costs cause your employee to fall below the minimum wage, you must reimburse them for mileage.

Remitting Taxes Quarterly

Household employers can remit taxes, including FICA, employee income, and federal unemployment, quarterly using Form 1040-ES. If a household employer does not remit their taxes quarterly, the entire amount will be due when they file their personal tax return. This could cause an underpayment penalty.

Year-End Requirements

By January 31, household employers must provide Form W-2 to their employees and submit Form W-3 and Copy A of Form W-2 to the Social Security Administration. Then, a household employer must file Schedule H with their personal tax return. Learn more: How to File Schedule H