Employers in Connecticut are accustomed to adapting to changing state and federal labor laws. Similar to changes in past years, 2024 is no exception. Let's take a look at what's changing in 2024.
CT Minimum Wage
As we've detailed in previous articles, Connecticut's minimum wage was increased again in 2024. As of January 1, 2024, the CT minimum wage was increased to $15.69 per hour. This represents a 4.6% increase over the 2023 minimum wage of $15.00 per hour. The increased minimum wage is now tied - for the first time ever - to the federal employment cost index.
State Unemployment Tax Act (SUTA) Alterations
Three key changes are coming to CT SUTA in 2024.
- Taxable Wage Base - CT's taxable wage base (cap on earnings subject to SUTA taxes) will see a significant increase from $15,000 to $25,000.
- Rate Adjustments - CT is decreasing the minimum charged rate from 0.5% to 0.1%. However, on the opposite end, the maximum charged rate will increase from 5.4% to 10.0%, nearly doubling.
- Indexing on Inflation - Moving forward from 2024, CT will index its taxable wage base annually to account for inflation, aiming to shift in-line with economic changes.
Withholding Changes
For Connecticut employers, the income tax withholding is set to change. According to the Connecticut Department of Revenue Services, the two lowest tax rates will be lowered, as of January 1, 2024. "...the 3% rate on the first $10,000 earned by unmarried individuals and the first $20,000 earned by married individuals filing jointly or earned by a person who files a return under the federal income tax as a surviving spouse, will decrease to 2%." Additionally, "...the 5% rate on the next $40,000 earned by unmarried individuals and the next $80,000 earned by married individuals filing jointly or earned by a person who files a return under the federal income tax as a surviving spouse will decrease to 4.5%. These benefits will be capped for unmarried individual filers who earn $150,000 and for married individuals filing jointly or for a person who files a return under the federal income tax as a surviving spouse who earns $300,000. "
ACA Reporting for 2023 Starting Soon
For many employers subject to Affordable Care Act (ACA) reporting, January 1, 2024 marked the beginning of the process for 2023 reporting. We put together a handy ACA reporting guide for 2024, including eligibility criteria and important dates. A few of important dates you should be aware of:
January 1, 2024 - First day to approve forms.
February 5, 2024 - Approvals due (CA employees earlier)
March 4, 2024 - Deadline to distribute 1095 forms to all employees (CA employees earlier)
March 31 - IRS electronic submission deadline
A Note for Employers
Don't let the upcoming labor law changes catch you off guard. If you have questions about how these changes may affect your business, get in touch with The Human Resource Consulting Group today.
