Connecticut's minimum wage increased to $7.40 per hour, effective January 1, 2006. This is the first of a two-step increase, the second of which will raise the minimum wage to $7.65 per hour, with effect from January 1, 2007.

Connecticut's minimum wage is now the second highest in the nation, behind Oregon, which has a minimum wage of $7.50 per hour.

The minimum wage for tipped employees is $5.23 in the case of waitpersons, and $6.79 in the case of bartenders.

...back to 5 January 2006

Further information:
State's Minimum Wage Increases To $7.40 Per Hour Beginning January 1
Connecticut's Minimum Wage Rates for Service Employees and Bartenders

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Employees who are parties to civil unions recognized under Connecticut law should complete a new Form CT-W4 Employee's Withholding Certificate (effective 1/1/06). By choosing the filing status of civil union filing jointly or civil union filing separately, they will have the correct amount of Connecticut income tax withheld from their wages. The wages subject to Connecticut income tax withholding are the same as the wages subject to federal income tax withholding, determined as if the employee were married. For example:

1. An employer provides health insurance coverage for employees and their families. For federal income tax withholding purposes, the coverage for an employee's spouse is a non-taxable fringe benefit, but the cost of coverage for an employee's civil union partner is taxable income to the employee. For Connecticut income tax withholding purposes, the benefit for the civil union partner is treated in the same manner as a benefit for a spouse; therefore the coverage for the civil union partner is not taxable.
   
   
2. An employer provides a "cafeteria plan" package which allows employees to use pre-tax income for health insurance payments. For federal income tax withholding purposes, the premiums for an employee's spouse are a pre-tax salary reduction, but the premiums for a civil union partner are not a pre-tax salary reduction. However, for Connecticut income tax withholding purposes, the premiums for a civil union partner are a pre-tax salary reduction.

Connecticut's legislation allowing same-sex couples to enter into civil unions came into force on October 1, 2005. Out-of-state same-sex marriages, as permitted in Massachusetts, (as opposed to civil unions) have no legal significance and are not recognized for any purpose in Connecticut, including Connecticut income tax purposes. Vermont had had civil union legislation in place since 2000.

...back to 15 December 2005

Further information:
New for 2006 Withholding Tax - Employees in Civil Unions
Employee's Withholding Certificate

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