Colorado Payroll Tax and Labor Laws

Get your Colorado State Tax ID Number

Click Here to Obtain State Tax and State Unemployment Tax ID

Note: Colorado is a "Joint Application" State. One application for TWO ID numbers (one for SIT and one for SUI).

 

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 $9.30 per hour?

Colorado Wage and Hour Laws

Employers must pay covered employees at least $12.32*** an hour, tipped $9.30***.

All employees are covered except for:

• companions, casual babysitters, and domestic service employees in private residences;
• property managers;
• interstate drivers, driver's helpers, loaders, or mechanics of motor carriers;
• students employed by sororities, fraternities, college clubs, or dormitories;
• students employed in work experience study programs; and
• cab drivers.

Colorado Payroll for Employers

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):                        13,600

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New Employer Rate (% Taxable Wages)    1.7, 2.07, 2.91 or 7.74

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Employee Tax Rate (% Taxable Wages)     None

Colorado Income Tax Withholding

Colorado requires employers to withhold state income tax from employees' 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.

Colorado Benefits

Colorado Voting Rights:

Employer Right to Schedule Voting Hours         Yes

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Pay Deduction for Voting Time Leave                 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 State Tax Resources

SurePayroll, Inc. and its subsidiaries assume no liability and make no warranties on or for the information contained on these state payroll pages. The information presented is intended for reference only and is neither tax nor legal advice. Consult a professional tax, legal or other advisor to verify this information and determine if and/or how it may apply to your particular situation.

This website contains articles posted for informational and educational value. SurePayroll is not responsible for information contained within any of these materials. Any opinions expressed within materials are not necessarily the opinion of, or supported by, SurePayroll. The information in these materials should not be considered legal or accounting advice, and it should not substitute for legal, accounting, and other professional advice where the facts and circumstances warrant.If you require legal or accounting advice or need other professional assistance, you should always consult your licensed attorney, accountant or other tax professional to discuss your particular facts, circumstances and business needs.

***Special rules apply to minimum wage standards for this state. Please refer to state laws.

Information accurate as of December 2020