New employee payroll tax – Are you prepared?Posted on December 3rd, 2020
Effective January 1, 2021 employees must contribute 0.5% of their income to the new Connecticut Family Medical Leave Act (CTFMLA) tax. Prior to this date, employers must register their businesses with the CT Paid Leave Authority.
Before the end of 2020, Connecticut employers need to visit www.ctpaidleave.org to register their businesses. Businesses and self-employed individuals are eligible to opt-out of the program, but it must be completed through the registration process at the link provided. The CTFMLA act is an employee-only tax that provides benefits that will commence in January 1, 2022. As a result of this new tax, Connecticut employees will be able to take up to 12 weeks of paid family leave if they have a qualifying reason. If you or your employees have additional questions about this new tax, www.ctpaidleave.org has video guides available for employees and employers.