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Taxes
Colorado Payroll Taxes 2026: Complete Overview for Employers
Colorado flat 4.4% income tax, SUI on $23,800, and all employer obligations.
Practical, accurate resources for Colorado small business owners — covering payroll taxes, labor laws, and compliance. Written by the payroll professionals at Pacific Data Services.
Colorado flat 4.4% income tax, SUI on $23,800, and all employer obligations.
How to register with Colorado Department of Revenue and Colorado Department of Labor and Employment as a new Colorado employer.
New employer rate 1.7%, experienced range 0.75%–10.39%, wage base $23,800.
Colorado minimum wage is $14.81/hr. Colorado’s minimum wage is $14.81/hr with a $3.02/hr tip credit. The rate adjusts annually for inflation.
Monthly or semi-monthly pay required. Final pay: Terminated employees must receive final pay immediately; those who quit are paid on the next regular payday..
FICA, Social Security, Medicare, FUTA, federal withholding — the complete breakdown.
EIN, state registration, withholding setup, new hire reporting — complete checklist.
IRS classification rules, Colorado-specific considerations, and misclassification penalties.
IRS lookback period, deposit thresholds, next-day rule, EFTPS, and penalties.
Federal and Colorado new hire reporting requirements, deadlines, and penalties.
FLSA, IRS, and Colorado recordkeeping — what to keep, how long, and why.
ALE threshold, penalties, 1094-C/1095-C filing, small business exemption.
Misclassifying workers, wrong withholding, missed deposits — mistakes that add up fast.
Gusto vs Paychex vs QuickBooks vs ADP for Colorado small businesses.
Federal OT after 40 hrs/week, Colorado overtime rules, exemptions, salary thresholds.