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Taxes
Colorado Payroll Taxes 2026: Complete Overview for Employers
Colorado flat 4.4% income tax, SUI on the first $23,800, and all employer tax obligations explained.
Practical guides on CO payroll taxes, employer registration, SUI, minimum wage, and labor laws — written for small business owners, not accountants.
Written by payroll professionals at Pacific Data Services — trusted since 1969.
Colorado’s flat 4.4% income tax rate makes withholding straightforward, with the rate recently reduced from 4.55%.
Colorado requires employers to pay terminated employees immediately — one of the strictest final pay laws in the country.
Colorado’s Family and Medical Leave Insurance (FAMLI) program requires payroll deductions for both employers and employees.
Colorado flat 4.4% income tax, SUI on the first $23,800, and all employer tax obligations explained.
Get your EIN, register with Colorado, set up withholding, new hire reporting — the complete checklist.
New employer rate 1.7%, experienced range 0.75%–10.39%, wage base $23,800.
Colorado minimum wage $14.81/hr. Colorado’s minimum wage is $14.81/hr with a $3.02/hr tip credit. The rate adjusts annually for inflation.
IRS classification rules, Colorado-specific considerations, misclassification penalties.
Gusto vs Paychex vs QuickBooks vs ADP — detailed comparison for Colorado small businesses.