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Connecticut tax and labor law guide

Household employment requirements for families hiring a caregiver in Connecticut

Finding helpful Connecticut nanny tax information is not always easy. That’s why we’ve combined all the state and federal tax and labor law information you’ll need! Check out the information below that HomePay is here to help with.

Checklist for Connecticut  household employers

We know you’re busy so here’s a quick “to-do” list with links to extra details below.

Beginning of employment 

During employment 

Optional benefits for your employee

Ending employment

Beginning of employment 

Workers’ compensation

Household employers in Connecticut are required to have workers’ compensation insurance if their employee works more than 26 hours per week. These policies pay for medical expenses and lost wages if an employee has a work-related injury or illness. Obtain an instant quote and purchase a policy online, or contact our partner, Clarke White, at 804-267-1210 or wcnanny@allrisks.com.

Employment contract 

Connecticut law requires household employers to provide an employment contract and wage notice to their employee at the time of hire. The contract must include:

  • The employee’s hourly rate of pay.
  • The employee’s regular hours of employment.
  • That paydays will occur weekly.
  • Details regarding sick leave, vacation pay and any health benefits provided. 

Employment posters 

Families in Connecticut are required to notify their employee of their rights by sharing these posters.

During employment 

Minimum wage rate

The current minimum wage rate in Connecticut is $13.00/hour.

Connecticut overtime requirements

  • Live-out employees must be paid 1.5x their hourly rate for all hours worked over 40 in a workweek.
  • Live-in employees are not required to be paid overtime. 
  • Overtime is not required to be paid when work is performed on a holiday. 
Connecticut Public Health Emergency Leave

Families are required to provide up to 80 hours of paid leave to their employee if the governor of Connecticut  issues an emergency declaration. Employees can use their paid leave from the time the emergency declaration is made until up to 4 weeks after the declaration ends.

Paid family leave 

Household employees in Connecticut are eligible for paid family leave.

Optional benefits for your employee 

Health insurance

Families with only 1 employee can make contributions toward their employee’s health insurance premiums and treat the amount as non-taxable compensation. In this scenario, neither the employee nor the employer are required to pay any taxes on that portion of the compensation.

Families with 2 or more employees have 3 options:

  1. Set up an Individual Coverage Health Reimbursement Arrangement (ICHRA)
  2. Set up a Qualified Small Employer Health Reimbursement Arrangement (QSEHRA)
  3. Purchase a policy through SHOP (Small Business Health Options Program). 

Visit our health insurance page for more information about these options.  

Mileage reimbursements

The current federal mileage reimbursement rate is $0.56 per mile and only covers miles driven by your employee while on the job. Miles driven commuting are not eligible for reimbursement.

Ending employment 

Termination notice 

Household employers in Connecticut must provide their employee with a termination notice at the time of separation, regardless of the reason. 

Managing unused PTO 

Connecticut household employers do not need to pay their employees for unused sick time, but they must pay out unused vacation time.

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