Colorado Payroll Tax and Labor Laws

Get your Colorado State Tax ID Number 

Click HERE to obtain State Tax ID and Unemployment ID  

Note: Colorado utilizes one application to receive an ID that is used for both State Income Tax and State Unemployment Insurance filings.  

Colorado Wage and Hour Laws  

Minimum Wage 

The Colorado state minimum wage is currently $14.42 per hour. Please note that cities and counties within Colorado may have their own separate minimum wage rates which are higher than the state mandated rate and that minimum wage rates for all jurisdictions are subject to change. Employers should verify they meet current state, county, and local requirements.  

For more information on Colorado’s minimum wage rules, please click HERE.  

Overtime 

Colorado requires covered employers to pay employees time and one-half of the regular rate of pay for any work:  

• over 40 hours per workweek  
• over 12 hours per workday  

• over 12 consecutive hours  

For more information on Colorado’s overtime rules, please click HERE.  

Pay Frequency 

Under Colorado law, all wages or compensation are due for regular pay periods no greater than one calendar month or thirty days, whichever is longer, unless the employer and employee have mutually agreed otherwise.   

Regular paydays must be no later than 10 days after the end of the pay period.  

For more information on Colorado’s pay frequency rules, please click HERE.  

Colorado Unemployment

Taxable Wage Base ($000s):                           $23,800 

New Employer Rate (% Taxable Wages):      Non-Construction: 1.70%, Construction: 1.73% (NAICs code 236), 6.33% (NAICS code 237), 1.73% (NAICs code 238)  

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 State Resources 

Colorado Department of Revenue  

Colorado Department of Labor and Employment  

Colorado Unemployment Department  

Colorado SUI Rate  

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.  

Revised 1/1/2024