Connecticut Deductions from Pay laws & HR compliance analysis

Connecticut Deductions from Pay: What you need to know

Under Connecticut law, an employer may deduct from an employee's wages only charges required by law, permitted by law, or authorized by the employee on a form approved by the state labor commissioner (CT Gen. Stat. Sec. 31-71e).
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Deductions required by law include federal, state, and local income tax withholding, Federal Insurance Contributions Act (FICA) tax withholding, and court-ordered garnishments or other deductions. There is additional information on garnishments.
Deductions are allowed for the following reasons, provided they are authorized by the employee in writing and the authorization is revocable (CT Gen. Stat. Sec. 31-71e):
Deductions authorized by the employee for insurance and other benefits. Employers may make deductions authorized by employees in writing for medical, surgical, or hospital care, and for such services as:
• United Fund and Community Chest drives--acceptable on forms supplied by the agencies
• Disability and other forms of insurance--acceptable on forms supplied by insurance companies
• U.S. Savings Bonds--acceptable on forms provided by the federal government
• Union dues and fees--employers should insist on a signed authorization card from each employee before making any such deductions
Deductions authorized on an approved form only. Employers may make deductions authorized by employees in writing on a form approved by the state labor commissioner for:
• Christmas/Hanukkah savings clubs
• Safety equipment
• Employee purchases
• Stock purchase plans
• Employee recreational clubs
• Uniforms
• Moving expense agreements
• Personal loans from the employer to the employee pursuant to a written agreement
• Life insurance premiums
• Payroll savings plans

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Connecticut Deductions from Pay Resources

Type Title
Checklists Disciplinary Deductions Checklist
Forms Training Expense Agreement
Policies Payroll Deductions (Standard)
See all Deductions from Pay Resources