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State Payroll Information

Colorado Payroll

Did you know that Colorado residents who work in another state are exempt from paying state income tax? That outside sales representatives do not have to be paid the minimum wage of $6.85 per hour?

Colorado Income Tax Withholding

Colorado requires employers to withhold state income tax from employee's wages and remit the amounts withheld to the Department of Revenue.

A Colorado resident employee who works in another state, the District of Columbia, or a territory or possession of the United States can be excused from Colorado withholding on wages from which income tax is withheld for the other jurisdiction.

Colorado Benefits

Colorado Voting Rights:

Employer Right To
Schedule Voting Hours
Pay Deduction For
Voting Time Leave
Yes Time Off with Pay
Limited to 2 Hours

Colorado requires employers, under certain circumstances, to allow employees sufficient leave time to vote.

All employers in Colorado must allow employees time off to vote if they do not have sufficient time before or after work. This summary is restricted to coverage of private employers. Employers must allow employees to take two hours of leave on the day of any election. If employees have three hours outside of their work shifts while the polls are open, employers do not have to allow additional time off.

Colorado Compensation

Employers must pay covered employees at least $6.85 an hour.

All employees are covered except for:

  • Independent contractors;
  • Salaried administrative, executive/supervisor, professional, and outside sales employees;
  • Interstate drivers, driver's helpers, loaders, or mechanics of motor carriers; and
  • Cab drivers.

Colorado Payroll

Employers covered by Colorado's wage payment law must pay wages at least once a month or every 30 days, whichever is longer. Payments must be made on regular paydays no later than 10 days following the close of each pay period unless employers and employees agree on different pay periods.

Colorado Unemployment:

Taxable Wage Base
($000s)
New Employer Rate
(% Taxable Wages)
Employee Tax Rate
(% Taxable Wages)
Period Effective
10,000 2.25 - 5.82 None Calendar Year 2007

Helpful Links for Colorado Payroll

Colorado Department of Revenue
1375 Sherman Street
Denver, Colorado 80261
(303) 238-7378

Colorado Department of Labor and Employment
633 17th Street, Suite 201
Denver, Colorado 80202-3660
(303) 318-8000

Colorado Department of Labor and Employment - Unemployment Insurance Operations
P.O. Box 8789
Denver, Colorado 80201-8789
(303) 318-9100

Colorado Laws
Search Colorado Court Rules, Statutes and the Colorado State Constitution in an online format.

Colorado Tax Regulations
Browse links to both proposed new and revised Colorado tax regulations and final adoption of tax regulations.

Tax Forms and Publications
Access Colorado State Tax forms by DOR number.


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