Capital City
Denver
Timezone
MST
(
UTC -7
)
Paid Leave
Sick leave, voting leave, jury duty and family and medical leave
Income Tax
4.40%
Employer Tax
11.75%
Capital City
Denver
Timezone
MST
(
UTC -7
)
Paid Leave
Sick leave, voting leave, jury duty and family and medical leave
Income Tax
4.40%
Employer Tax
11.75%
Colorado has a skilled and diverse workforce, especially strong in technology, healthcare, and finance.
The state’s central time zone allows easy collaboration with teams across the U.S.
Colorado offers a lower cost of living than major coastal cities, making it attractive for top talent.
Yes, to employ in Colorado, you need both a Federal Employer Identification Number (EIN) and a Colorado Payroll Tax Account Number.
40-hour work week. 8 hours per day for 5 days.
In Colorado, full-time employment is generally considered to be working 30 to 40 hours per week, though there is no specific state law defining full-time hours.
There is no state-mandated probation period for new employees, but many employers implement one as a company policy.
State minimum wage is set at $14.42 per hour.
Certain local jurisdictions in Colorado have established higher minimum wage rates:
Employers are required to pay the highest applicable minimum wage rate based on the employee's work location.
Colorado has comprehensive anti-discrimination laws that protect employees from discrimination in the workplace. The Colorado Anti-Discrimination Act (CADA), along with federal laws, provides strong protections for employees based on various protected characteristics.
Employees are protected from discrimination based on race, color, national origin, ancestry, sex, age (40 and older), disability, religion, sexual orientation, gender identity, marital status, and pregnancy.
Most employers opt for biweekly (every two weeks) or semimonthly (twice a month) pay cycles.
New employers in Colorado start at 3,05% towards the state unemployment insurance fund. The rates for established employers usually ranges between 0.81% to 12.34%.
Additional Medicare Tax: Employees earning over $200,000 annually pay an extra 0.9% in Medicare taxes; employers are not required to match this additional amount.
In Colorado, the state income tax filing deadline aligns with the federal deadline, which is typically April 15.
In Colorado, employers are required to provide certain benefits to employees to comply with state and federal laws.
Employers with 50 or more full-time employees are required to offer health insurance that meets ACA (Affordable Care Act) standards. Colorado does not mandate health insurance for employers with fewer than 50 employees.
Colorado employers are not required to offer a 401(k) plan, but many are required to provide retirement savings access through the Colorado SecureSavings Program if they don’t already offer a retirement plan like a 401(k).
No, Colorado does not require employers to provide paid or unpaid vacation leave.
In Colorado, employers aren't required to offer PTO, but if provided, all earned PTO must be paid out upon separation. "Use-it-or-lose-it" policies are not allowed, though caps on accrual are permitted.
The Colorado Family and Medical Leave Insurance (FAMLI) program offers up to 12 weeks of paid leave for bonding with a new child through birth, adoption, or foster care. An additional 4 weeks are available for pregnancy or childbirth complications.
In Colorado, the termination of employment is primarily governed by the at-will employment doctrine, meaning that either the employer or the employee can terminate the employment relationship at any time, with or without cause or notice
In Colorado, no specific notice period is legally required before terminating an employee.
Colorado law does not mandate severance pay. If an employer terminates an employee, all earned wages and compensation are due immediately. If an employee resigns, the final wages are due on the next regular payday.
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As of January 1, 2024, Colorado’s minimum wage rates are: