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Intuit

Track Connecticut Paid Family Leave

Learn how to set up your payroll to track the paid family leave in Connecticut.

The state of Connecticut has implemented a new standalone Paid Family Leave program funded by the collection of taxes from the employee that goes into effect on January 1, 2021.

For more information visit Connecticut's Paid Family Leave site.

How does the Connecticut Paid Family Leave program work?

  • The tax rate is 0.5% of employee taxable wages up to Social Security (SS) limit.
  • All Connecticut based employers are required to collect this tax from their employees. In order to be exempt from the tax, employers must apply and receive permission from the Connecticut Paid Leave Authority to provide a private plan to its employees.

Add Connecticut Paid Family Leave to employees

To begin calculation and deduction of Connecticut Paid Family and Medical leave from your employee’s pay you will need to update your payroll.

Note: Not sure which payroll service you have? Here's how to find which payroll service you have.

  1. Download and install the payroll update (22101 or later) released on December 17, 2020.
  2. When you create your next payroll, QuickBooks will prompt you to create and add this “Other Tax” payroll item to your employees. Don’t exit out, you need to set up the deduction for the employee’s side to be in compliance.
  3. When you are prompted to enter a rate, select the 0.5% rate from the dropdown, or if your company has been provisional approved for an exemption (private plan), select the 0% rate.
  4. Once the item has been set up, the setup wizard will prompt if you want it to add that to all your employees, select “YES”.
  5. Add your FEIN as the Tax ID for this tax.  To do this:
    1. Go to Lists then Payroll Item List.
    2. Double-click the payroll item called CT Paid Leave.
    3. Select Next until the until you get to the Enter the number that identifies you to the agency window,  and enter your FEIN.
    4. Select Next.
    5. Enter 0.5 in the Employee tax rate window.  If your company has been provisional approved for an exemption (private plan), enter 0.
    6. Select Next until you can select Finish.
  6. To verify the tax was added for each employee:
    1. Go to Employees and select Employee Center.
    2. Double-click the employee's name to open the Edit Employee window.
    3. Select the Payroll Info tab and select Taxes.
    4. In the Taxes screen that pops up, select the Other tab.
    5. Verify the CT Paid Leave line is there.

If you have already run paychecks in 2021 prior to setting up this payroll item, the employee will have any catch-up amounts deducted from their next paycheck.

Add the rate in your company tax settings.

  1. Go to Settings ⚙ and select Payroll settings.
  2. Next to Connecticut Paid Family and Medical Leave select the dropdown menu and choose 0.5%.
    • Note: If you have received a waiver from withholding this rate for all employees from the Connecticut Paid Family and Medical Leave Agency you will need to choose the rate of 0%.
  3. Enter the Effective date as 1/1/2021.
  4. Select OK to save.

Taxes will deduct from your employees paychecks on the effective date.

If you have already run paychecks in 2021 prior to setting up this rate, the employee will have any catch-up amounts deducted from their next paycheck.

If you have Intuit Online Payroll Enhanced or Intuit Online Payroll Full Service add the rate from your Setup tab.

  1. Go to Setup and select Tax Setup.
  2. Under the Taxes section select State Taxes - CT.
  3. Under Connecticut Paid Family and Medical Leave dropdown enter the rate of 0.5%.
    • Note: If you've received a waiver from withholding this rate for all employees from the Connecticut Paid Family and Medical Leave Agency you'll need to choose the rate of 0%
  4. Enter the Effective date as 1/1/2021.
  5. Select OK.

Taxes will deduct from your employees paychecks on the effective date.

If you have already run paychecks in 2021, prior to setting up this rate, the employee will have any catch-up amounts deducted from their next paycheck.

Exempt an employee from Connecticut Paid Family Leave

If an employee is exempt from Connecticut Paid Family and Medical Leave, mark them as exempt so premiums won't calculate on their paychecks.

QuickBooks Desktop Payroll Assisted: contact us to remove this tax.

QuickBooks Desktop Payroll (all other versions):

  1. Go to Employees and select Employee Center.
  2. Double-click the employee's name to open the Edit Employee window.
  3. Go to the Payroll Info tab and select Taxes.
  4. In the Taxes screen that pops up, select the Other tab.
  5. Select the CT Paid Leave line and select Delete.
  6. Select OK twice.

If you have already created paychecks prior to exempting the employee you will need to do a liability adjustment to correct QuickBooks Desktop. To pay the employee back the amount collected create a reimbursement item and add it to the next paycheck.

Amendments to filings may be needed if you have crossed quarters. If you have QuickBooks Desktop Payroll Assisted contact us for support.

  1. Go to the Payroll then Employees.
  2. Select the employee from the list
  3. Select Edit ✎ next to What are [employee] withholdings?
  4. Expand the Tax Exemptions and enter a checkmark next to CT Paid Family and Medical Leave.
  5. Select Done.
    If you have already created paychecks prior to exempting the employee, contact us to help you correct any previously created checks.

  1. Go to Employees and choose the employee from your list.
  2. Select Edit next to Taxes & Exemptions.
  3. Select Edit in the Exemptions section.
  4. Enter a checkmark next to CT Paid Family and Medical Leave.
  5. Select Save then select OK.
    If you have already run paychecks prior to exempting the employee, contact us to help you correct any previously created checks.

Contact us to help you exempt employees.

Frequently Asked Questions (FAQ)

Does the size of my business factor in for paid family leave contributions?

No.

Which employees are considered covered employees for paid family leave?

It does not matter whether an employee is salaried, hourly, full-time, or part-time. In order to be eligible for paid leave benefits from the Connecticut Paid Leave Authority, the employee must meet both of the following requirements:

  • The individual is currently employed in Connecticut or has been employed within the last 12 weeks in Connecticut by an employer who has not obtained permission to have a private plan; and
  • The individual has earned at least $2,325 in one quarter within 15 months starting 1/1/2021.
    In addition, self-employed or sole proprietors who have chosen to enroll (for a minimum of 3 years) in the Connecticut Paid Leave Authority may be eligible for benefits.

How do employees withdraw paid family leave?

Eligible employees can start to withdraw from Connecticut Paid Leave Authority 1/1/2022.

What are the reporting requirements associated with paid family leave contributions?

Reporting is required quarterly.

Will you pay and file Connecticut Paid Family and Medical Leave for me?

If you have full service payroll, Intuit will pay and file Connecticut Paid Family and Medical Leave for you.

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