Guide to Setting up Payroll for your Child Care Business in Connecticut

Francesca Bonnevie

Run Payroll with Playground

All-in-one child care management platform with billing, attendance, registration, communication, payroll, and more

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Run Payroll with Playground

All-in-one child care management platform with billing, attendance, registration, communication, payroll, and more

5.0 Rating

Starting a child care business in Connecticut involves many important steps, and one crucial aspect is setting up your payroll system correctly. This guide will walk you through the essential components and requirements for establishing payroll for your Connecticut-based child care business.

Whether you're a new entrepreneur or expanding your existing child care services, understanding and complying with Connecticut's payroll regulations is vital. We'll cover everything from obtaining necessary identification numbers to understanding tax rates and reporting requirements.

By following this comprehensive guide, you'll be well-equipped to navigate the complexities of payroll management, ensuring that your child care business operates smoothly and in full compliance with state regulations.

To get set up with payroll in Connecticut, you must provide the following:

  • Connecticut Department of Labor Employer Registration Number

  • Connecticut Tax Registration Number

  • Connecticut Employer Unemployment Tax Rate

  • Connecticut Paid Family Medical Leave Exemption

  • Connecticut Power of Attorney (LGL-001, UC-424)

Who needs to pay payroll taxes?

In Connecticut, businesses that maintain an office or transact business within the state are considered employers for federal withholding purposes and therefore must withhold income tax, regardless of whether or not your business’s payroll department is located in CT.

Connecticut Department of Employer Labor Registration Number

Your Connecticut Department of Labor Registration Number is a seven-digit number formatted as 00-000-00.

How to find your CT Department of Labor Employer Registration Number

You can find your CT Department of Labor Registration Number on any previously filed quarterly report (Forms UC-5A or UC-2R), on correspondence from the Department of Labor, or by contacting the Employer Status Unit by either fax at 860-263-6567 or phone at 860-297-5962.

Don’t have a Department of Labor Employer Registration Number?

For child care businesses in CT, you can acquire a Department of Labor Registration Number by registering online at the Connecticut Department of Labor website. You will receive your Employer Registration Number immediately upon successful completion of online registration.

If you experience any troubles, contact the Department of Labor at 860-263-6000.

Connecticut Tax Registration Number

Your CT Tax Registration number is a 10-12 digit number, formatted as a nine-digit number, followed by a location code, like below:

  • 000000000 000

How to find your CT Tax Registration Number

You can find your CT Tax Registration Number on any previously filed state tax return, such as Form CT-941, on correspondence from the CT Department of Revenue Services, or by calling the Department of Revenue Services at 860-297-5962.

Don’t have a Connecticut Tax Registration Number?

You can acquire a CT Tax Registration Number by registering online with the Department of Revenue Services. You will receive your Tax Registration Number in approximately ten days.

If you experience any issues, contact the Department of Revenue Services at 860-297-5962.

Connecticut Employer Unemployment Tax Rate

Your rate is the combination of the Employer Tax Rate and the Connecticut Fund Solvency Rate. This rate ranges from 0.1% to 10% for the year 2024. New employers receive a rate of 2.5% for this year.

How to find your Unemployment Tax Rate

There are three ways you can find your CT Unemployment Tax Rate:

  • Online on the CT Department of Labor Website

  • On previously filed quarterly reports (Form UC-5A/UC-2R)

  • On the Merit Rating Notice the Department mails annually every December.

Connecticut Paid Family Medical Leave Exemption

The Connecticut Paid Leave program covers employers with one or more employees and can be accessed by any employees who have met certain earned-wage thresholds. Businesses covered under the CT Paid Family and Medical Leave Act (PMFLA) will need to register with the CT Paid Leave Authority to establish an account. This process enables third-party administrator registrations like Playground Payroll to pay and file contributions on your behalf.

Connecticut Power of Attorney (Form LGL-001)

Child care businesses delegating their payroll processing to a payroll software like Playground Payroll will need to fill out and submit a Power of Attorney (Form LGL-001) to the Department of Revenue Services. This enables the processor to view account information and correspondence, pay taxes and bills, register tax accounts, file business taxes, and securely message the Department of Revenue Services Customer Service.

Playground Payroll Users can fill out Form LGL-001 during setup after filling out tax information. You can also complete and submit Form LGL-001 online through myconneCT.

Further Reading

https://portal.ct.gov/dol/knowledge-base/articles/unemployment-taxes/tax-rates-and-taxable-wage-base?language=en_US

https://portal.ct.gov/drs/withholding-taxes/tax-information

https://portal.ct.gov/dol/divisions/unemployment-insurance-tax/information-on-unemployment-tax-rate-for-calendar-year-2024?language=en_US

https://portal.ct.gov/-/media/drs/forms/2023/misc/lgl-001_0923fillable.pdf

Starting a child care business in Connecticut involves many important steps, and one crucial aspect is setting up your payroll system correctly. This guide will walk you through the essential components and requirements for establishing payroll for your Connecticut-based child care business.

Whether you're a new entrepreneur or expanding your existing child care services, understanding and complying with Connecticut's payroll regulations is vital. We'll cover everything from obtaining necessary identification numbers to understanding tax rates and reporting requirements.

By following this comprehensive guide, you'll be well-equipped to navigate the complexities of payroll management, ensuring that your child care business operates smoothly and in full compliance with state regulations.

To get set up with payroll in Connecticut, you must provide the following:

  • Connecticut Department of Labor Employer Registration Number

  • Connecticut Tax Registration Number

  • Connecticut Employer Unemployment Tax Rate

  • Connecticut Paid Family Medical Leave Exemption

  • Connecticut Power of Attorney (LGL-001, UC-424)

Who needs to pay payroll taxes?

In Connecticut, businesses that maintain an office or transact business within the state are considered employers for federal withholding purposes and therefore must withhold income tax, regardless of whether or not your business’s payroll department is located in CT.

Connecticut Department of Employer Labor Registration Number

Your Connecticut Department of Labor Registration Number is a seven-digit number formatted as 00-000-00.

How to find your CT Department of Labor Employer Registration Number

You can find your CT Department of Labor Registration Number on any previously filed quarterly report (Forms UC-5A or UC-2R), on correspondence from the Department of Labor, or by contacting the Employer Status Unit by either fax at 860-263-6567 or phone at 860-297-5962.

Don’t have a Department of Labor Employer Registration Number?

For child care businesses in CT, you can acquire a Department of Labor Registration Number by registering online at the Connecticut Department of Labor website. You will receive your Employer Registration Number immediately upon successful completion of online registration.

If you experience any troubles, contact the Department of Labor at 860-263-6000.

Connecticut Tax Registration Number

Your CT Tax Registration number is a 10-12 digit number, formatted as a nine-digit number, followed by a location code, like below:

  • 000000000 000

How to find your CT Tax Registration Number

You can find your CT Tax Registration Number on any previously filed state tax return, such as Form CT-941, on correspondence from the CT Department of Revenue Services, or by calling the Department of Revenue Services at 860-297-5962.

Don’t have a Connecticut Tax Registration Number?

You can acquire a CT Tax Registration Number by registering online with the Department of Revenue Services. You will receive your Tax Registration Number in approximately ten days.

If you experience any issues, contact the Department of Revenue Services at 860-297-5962.

Connecticut Employer Unemployment Tax Rate

Your rate is the combination of the Employer Tax Rate and the Connecticut Fund Solvency Rate. This rate ranges from 0.1% to 10% for the year 2024. New employers receive a rate of 2.5% for this year.

How to find your Unemployment Tax Rate

There are three ways you can find your CT Unemployment Tax Rate:

  • Online on the CT Department of Labor Website

  • On previously filed quarterly reports (Form UC-5A/UC-2R)

  • On the Merit Rating Notice the Department mails annually every December.

Connecticut Paid Family Medical Leave Exemption

The Connecticut Paid Leave program covers employers with one or more employees and can be accessed by any employees who have met certain earned-wage thresholds. Businesses covered under the CT Paid Family and Medical Leave Act (PMFLA) will need to register with the CT Paid Leave Authority to establish an account. This process enables third-party administrator registrations like Playground Payroll to pay and file contributions on your behalf.

Connecticut Power of Attorney (Form LGL-001)

Child care businesses delegating their payroll processing to a payroll software like Playground Payroll will need to fill out and submit a Power of Attorney (Form LGL-001) to the Department of Revenue Services. This enables the processor to view account information and correspondence, pay taxes and bills, register tax accounts, file business taxes, and securely message the Department of Revenue Services Customer Service.

Playground Payroll Users can fill out Form LGL-001 during setup after filling out tax information. You can also complete and submit Form LGL-001 online through myconneCT.

Further Reading

https://portal.ct.gov/dol/knowledge-base/articles/unemployment-taxes/tax-rates-and-taxable-wage-base?language=en_US

https://portal.ct.gov/drs/withholding-taxes/tax-information

https://portal.ct.gov/dol/divisions/unemployment-insurance-tax/information-on-unemployment-tax-rate-for-calendar-year-2024?language=en_US

https://portal.ct.gov/-/media/drs/forms/2023/misc/lgl-001_0923fillable.pdf

Starting a child care business in Connecticut involves many important steps, and one crucial aspect is setting up your payroll system correctly. This guide will walk you through the essential components and requirements for establishing payroll for your Connecticut-based child care business.

Whether you're a new entrepreneur or expanding your existing child care services, understanding and complying with Connecticut's payroll regulations is vital. We'll cover everything from obtaining necessary identification numbers to understanding tax rates and reporting requirements.

By following this comprehensive guide, you'll be well-equipped to navigate the complexities of payroll management, ensuring that your child care business operates smoothly and in full compliance with state regulations.

To get set up with payroll in Connecticut, you must provide the following:

  • Connecticut Department of Labor Employer Registration Number

  • Connecticut Tax Registration Number

  • Connecticut Employer Unemployment Tax Rate

  • Connecticut Paid Family Medical Leave Exemption

  • Connecticut Power of Attorney (LGL-001, UC-424)

Who needs to pay payroll taxes?

In Connecticut, businesses that maintain an office or transact business within the state are considered employers for federal withholding purposes and therefore must withhold income tax, regardless of whether or not your business’s payroll department is located in CT.

Connecticut Department of Employer Labor Registration Number

Your Connecticut Department of Labor Registration Number is a seven-digit number formatted as 00-000-00.

How to find your CT Department of Labor Employer Registration Number

You can find your CT Department of Labor Registration Number on any previously filed quarterly report (Forms UC-5A or UC-2R), on correspondence from the Department of Labor, or by contacting the Employer Status Unit by either fax at 860-263-6567 or phone at 860-297-5962.

Don’t have a Department of Labor Employer Registration Number?

For child care businesses in CT, you can acquire a Department of Labor Registration Number by registering online at the Connecticut Department of Labor website. You will receive your Employer Registration Number immediately upon successful completion of online registration.

If you experience any troubles, contact the Department of Labor at 860-263-6000.

Connecticut Tax Registration Number

Your CT Tax Registration number is a 10-12 digit number, formatted as a nine-digit number, followed by a location code, like below:

  • 000000000 000

How to find your CT Tax Registration Number

You can find your CT Tax Registration Number on any previously filed state tax return, such as Form CT-941, on correspondence from the CT Department of Revenue Services, or by calling the Department of Revenue Services at 860-297-5962.

Don’t have a Connecticut Tax Registration Number?

You can acquire a CT Tax Registration Number by registering online with the Department of Revenue Services. You will receive your Tax Registration Number in approximately ten days.

If you experience any issues, contact the Department of Revenue Services at 860-297-5962.

Connecticut Employer Unemployment Tax Rate

Your rate is the combination of the Employer Tax Rate and the Connecticut Fund Solvency Rate. This rate ranges from 0.1% to 10% for the year 2024. New employers receive a rate of 2.5% for this year.

How to find your Unemployment Tax Rate

There are three ways you can find your CT Unemployment Tax Rate:

  • Online on the CT Department of Labor Website

  • On previously filed quarterly reports (Form UC-5A/UC-2R)

  • On the Merit Rating Notice the Department mails annually every December.

Connecticut Paid Family Medical Leave Exemption

The Connecticut Paid Leave program covers employers with one or more employees and can be accessed by any employees who have met certain earned-wage thresholds. Businesses covered under the CT Paid Family and Medical Leave Act (PMFLA) will need to register with the CT Paid Leave Authority to establish an account. This process enables third-party administrator registrations like Playground Payroll to pay and file contributions on your behalf.

Connecticut Power of Attorney (Form LGL-001)

Child care businesses delegating their payroll processing to a payroll software like Playground Payroll will need to fill out and submit a Power of Attorney (Form LGL-001) to the Department of Revenue Services. This enables the processor to view account information and correspondence, pay taxes and bills, register tax accounts, file business taxes, and securely message the Department of Revenue Services Customer Service.

Playground Payroll Users can fill out Form LGL-001 during setup after filling out tax information. You can also complete and submit Form LGL-001 online through myconneCT.

Further Reading

https://portal.ct.gov/dol/knowledge-base/articles/unemployment-taxes/tax-rates-and-taxable-wage-base?language=en_US

https://portal.ct.gov/drs/withholding-taxes/tax-information

https://portal.ct.gov/dol/divisions/unemployment-insurance-tax/information-on-unemployment-tax-rate-for-calendar-year-2024?language=en_US

https://portal.ct.gov/-/media/drs/forms/2023/misc/lgl-001_0923fillable.pdf

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Guide to Setting up Payroll for your Child Care Business in Connecticut

Published Sep 3, 2024

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Francesca Bonnevie
Business Automation