Batch Contribution Process

Step-by-Step

1. 

   Request CT Paid Leave SFTP server access

   You must request access to the CT Paid Leave Authority’s Secure File Transfer Protocol (SFTP) server so that you are able to submit your enrollment files, return files and amended return files.

   SFTP ACCESS

   The SFTP server for submitting files to the CT Paid Leave Authority is a different SFTP server than the one used to upload files for other State of Connecticut taxes.
2. 

   Enroll your clients and remind them to register

   If you are an employer remitting your own contributions, you should skip this step.

   If you are a third-party administrator, enrolling your clients through the batch process allows you to remit contributions on their behalf. However, this does not mean their registration is complete. Your client employers must complete their own business registrations after being enrolled to provide additional business information and so that they have access to the business in the My Account for Business portal.

   To enroll your clients, you will need to upload an enrollment file to the Inbound folder on the SFTP site. Refer to the File Specification Toolkit (PDF) for detailed file specifications to create and name your enrollment files.

   After your enrollment file is processed, an acknowledgment file will appear in the Outbound folder. Check the acknowledgement file to see if the enrollment file processed successfully or if there are any errors to fix. Review the Acknowledgment Files section lower on this page for details on how to create a file with only your fixed records. Warnings do not need to be fixed with this submission but should be used to correct future files.

   Adding a New Client to Your Enrollment File

   The date you choose to enroll your client denotes the quarter in which your quarterly return filing for the employer should start. For example, if you enroll a new client in June, CT Paid Leave will anticipate a Q2 return filing for you on behalf of your client.

   Ending a Client Employer Relationship

   If you populate an end date to your relationship, it does not close an account in our system. If an employer will close or will permanently stop paying wages, it must notify the CT Paid Leave Authority immediately by submitting a Contact Us inquiry, choosing "Help with Business Registration/My Account for Business" as the contact reason.

   Enrollment File Submission Frequency

   Enrollment files must be submitted quarterly. If you take on a new client employer or end a client employer relationship in the middle of a quarter, submit an enrollment file at the time these changes occur rather than waiting until the end of the quarter. Your relationship start date should remain the same on your enrollment file, or you may potentially create duplicate enrollments between you and your clients.

   The quarterly enrollment files should be submitted before return files are submitted and contributions are remitted.

   Contributions are due on the last day of each quarter; however, penalties and interest will not be charged if contributions are submitted before the last day of the month following the end of the quarter.

   Remind Your Client Employers to Register but Not Remit

   Enrollment of your client employers is different from employer registration. Notify your client employers that they must complete their business registration through the CT Paid Leave portal. Ask them to follow the registration step-by-step instructions found on How to Register as an Employer.

   At the same time, notify your client employers that they should NOT make contributions to the CT Paid Leave Authority since you will be remitting on their behalf.

   It may take up to an hour for files to be picked up from the Inbound folder for processing and up to 48 hours to process depending on the size of the file.
3. 

   Prepare and upload return files to SFTP server

   The return file conveys information about the contributions that will be remitted either for your own business or on behalf of your client employers.

   CT Paid Leave accepts batch return files in two file formats: XML or CSV. Both file formats contain the same information. Refer to the File Specification Toolkit (PDF) for detailed file specifications to create and name your return files. After creating the files, you will need to upload them to the Inbound folder on the SFTP site.

   Return File Submission Frequency

   CT Paid Leave requests that return files are submitted quarterly. You may submit return files more frequently if you are also remitting contributions to match. Each return file must be attributed to a quarter and should not span multiple quarters.

   Review Acknowledgment Files

   After your return file is processed, an acknowledgement file will appear in the Outbound folder. Check the acknowledgement file to confirm that the return file processed successfully or see if there are any error to fix. Review the Acknowledgment Files section lower on this page for details on how to create a file with only your corrected records. Warnings do not need to be fixed, but you should use the information to correct future files.

   It may take up to an hour for files to be picked up from the Inbound folder for processing and up to 48 hours to process depending on the size of the file.

   Return file and contribution remitting process diagram (PDF)
4. 

   Remit contribution through financial institution

   Batch contributions are made by sending an ACH Credit NACHA file to your financial institution, who will then deliver the funds to CT Paid Leave's financial institution also following the NACHA format. Refer to the File Specification Toolkit (PDF) for detailed file specifications to create your NACHA payment file.

   The CT Paid Leave Authority requires you to include two addenda records to capture critical information used to attribute the contributions to the correct employers for the correct contribution periods.

   Prior to remitting your first contribution, follow the steps in the File Specification Toolkit to submit a penny test.

   Once you complete a successful penny test, you may remit contributions.

   It may take up to 5 business days before the payment clears with our bank and then completes posting to the My Account for Business portal. Check back periodically to view completed payments.
5. 

   Prepare and upload amended return filings (when changes are necessary)

   Amended returns can be filed via our batch process or our online portal process. Batch filers may amend batch returns using either the batch amended return process or online portal amended return process. To amend a return through the online portal process, the user must be either:

   • a related contact on the employer account in our system; or
   • a contact on the related TPA account who has a current established relationship with the employer account in our system.

   If you need to amend a previously submitted batch return file, view the guides below for instructions and specifications on how to submit amended return files.

   Guide to Amended Returns Filed through the Batch Process (PDF) Guide to Amended Returns Filed through the Online Portal Process (PDF)

   What changes can you make with an amended return?

   • Reported wages
   • Contribution amount
   • Employee counts

   What changes can you not make with an amended return?

   Any changes other than those listed as changes you can make must be submitted to the CT Paid Leave staff through a Contact Us inquiry. Such manual changes include but are not limited to the following:

   • Pay period start and end dates
   • TPA or Employer FEINs
   • Reporting quarter or reporting year
   • Any changes to a return your business did not submit

   Employer Contribution Refunds

   If a batch amended return results in an employer who overpaid on their contributions, they will see that they are owed a refund in the My Account for Business portal. Refunds are not automatically dispersed in case there are additional amendments.

   Employers should request a refund using the contact us form. Select "Employer Refund Request" as the contact reason when completing the contact form.

   After submitting your request for a refund through the contact us form, you can expect to receive a decision within 7 days. Once approved the refund is typically issued within 30 days.

   Employer contribution refunds are handled differently for amended returns filed through the online portal process.
6. 

   Remit additional contributions (when necessary)

   When amending returns result in underpayments, you can remit additional contributions through your financial institution following the same ACH Credit NACHA file format used for initial contributions.

1. Non-compliant with missing return and missing contribution

   1. The employer will be sent communications through email or US postal mail stating that the reporting of contribution wages is missing. An email is sent to each valid email associated with the employer. If there are no valid email addresses, the notification is sent through US postal mail instead.
   2. The third-party administrator (TPA) or employer must upload a return file with wages for the quarter and a contribution NACHA payment of 0.5% of wages.
   3. The TPA or employer must submit a NACHA payment matching the contribution amount, payor FEIN and employer FEIN on the return file. Wages should contain wages for the quarter, the same as specified on the return.
   4. CT Paid Leave will calculate the penalty and interest owed based on the information provided in the return file. The total amount due will be the sum of the contribution amount, penalty and interest.
   5. The contribution received will be applied to the total amount due in the following order: Penalty, Interest, Contribution Amount.
   6. The TPA or employer must pay off the remaining balance either through the online portal or by making an additional NACHA payment. The total amount due is available from the online portal or most recent correspondence. When paying through the online portal, the payoff balance will be calculated in real-time for you.
2. Non-compliant with return file received but no payment received or the payment was late

   1. The employer will be sent communications through email or US postal mail providing a breakdown of contributions, penalty, and interest owed. These amounts are calculated from the received return. An email is sent to each valid email associated with the employer. If there are no valid email addresses, the notification is sent through US postal mail instead.
   2. The third-party administrator (TPA) or employer must submit a NACHA payment for the total outstanding amount communicated on the email or letter.
   3. The contribution received will be applied to the total amount due in the following order: Penalty, Interest, Contribution Amount.
   4. If there is any remaining balance owed, CT Paid Leave will send another email or letter with the remaining balance owed and will provide a link and QR code to remit the payment using Paylink.
   5. The TPA or employer must pay the remaining amount owed through Paylink or through another NACHA payment.
3. Non-compliant with payment received but no return file received or a late return file was received

   1. The employer will be sent communications through email or US postal mail stating that a contribution payment was received but return filing is outstanding for a particular year and quarter. An email is sent to each valid email associated with the employer. If there are no valid email addresses, the notification is sent through US postal mail instead.
   2. CT Paid Leave will assess a $50 penalty for filing a late return file.
   3. The third-party administrator (TPA) or employer must submit a return file with wages for the quarter.
   4. The TPA or employer must pay the $50 penalty either through the Paylink link or QR code in the communication received, or by remitting another NACHA payment. If remitting another NACHA payment, the wages on the NACHA file should match wages for the quarter, and the contribution should reflect the $50.00 penalty.