Connecticut – Recently passed legislation raising the State’s Taxable Wage base as well as changes the state’s Tax Rate Calculations for all employers.
Starting in 2024, the taxable base will increase from $15,000 to $25,000, and will subsequently be indexed annually due to inflation.
While this is a major increase, the state intends to “offset” the impact for the next few years by reducing the “charged rate” by a factor of 1.471 for 2024 with a sliding scale for the following 3 years.
Overall, with the increase to the 2024 Taxable wage base along with changes to the rate factors, employers can expect a Tax Cost increase ranging from $20 per employee for minimum rated employers(1.10%) to almost $960 for maximum rated employers(7.80%) compared to similar rates in 2023.
2023 Min = $15,000 wage base * 1.70% minimum rate = $255/ee
2024 Min = $25,000 wage base * 1.10% minimum rate = $275/ee
2024 Tax Cost Increase for a minimum rated employer = $20/ee
2023 Max = $15,000 wage base * 6.60% maximum rate = $990/ee
2024 Max = $25,000 wage base * 7.80% maximum rate = $1,950/ee
2024 Tax Cost Increase for a maximum rated employer = $960/ee
2024 Taxable Wage Base Update
29 states have confirmed the 2024 Taxable Wage Base for employers.