Paying Employees in Colorado

Colorado 2021 Minimum Wage:

• $12.32/hour,
• $9.30/hour for tipped employees
• $14.77/hour in Denver

Colorado Overtime Rules: 1.5 x’s the regular rate for hours worked over 40 in a workweek, over 12 hours in a workday, or when twelve consecutive hours are worked (regardless of start/end of workday) – whichever is most favorable for the employee

Colorado Paystub Requirements:

Colorado law requires employers to furnish to the employee an itemized pay statement. The pay statement must be made available to the employee once a month or at the time of payment of wages or compensation. The pay statement must contain the following:

• Gross wages earned (It is the policy of the Division of Labor Standards and Statistics that gross wages refers to the gross wages for the specific pay statement, not gross wages for the year-to-date)
• All withholdings and deductions
• Net wages earned
• The inclusive dates of the pay period
• The name of the employee or the employee’s social security number
• The name and address of the employer

How often do you have to pay employees in Colorado?

• Employees must be paid at least once per month, or no more than 30 days apart.  Payment must be made no later than 10 days after the pay period end date.

When is an employee’s final check due in Colorado?

• Involuntary terminations – final payment is due at the time of termination (unless termination occurs on a day when accounting is off or the accounting unit is located offsite)
• Voluntary resignations – payment is due on the next regular payday.

Colorado Withholding Tax 

Colorado Withholding Tax Registration

• Register online
• Register using paper form CR 0100AP

Wages Subject to Colorado Withholding Tax

• Wages for worked performed within Colorado is subject to Colorado income tax
• Wages earned by Colorado residents is subject to Colorado income tax, unless income is being withheld for another state

Colorado Employee’s Withholding Exemption Certificate

• Use federal W-4

Reciprocity

• None

Colorado Withholding Tax Due Dates

• Due quarterly by the end of the month following quarter end if less than $7,000
• Due monthly by the 15th of the following month if the liability is $7,000 – $50,000
• Due weekly by the following Wednesday if the liability is more than $50,000

Colorado Unemployment Tax

Colorado Unemployment Tax Registration

• Register online on mybiz.colorado

Colorado Unemployment Tax Employer Liabilities

• New employer rate: 1.7%
• 2021 Wage Base: $13,600

Colorado Unemployment Tax Due Dates

• Return and payment are due quarterly on the last day of the month following the end of the reporting period

Colorado New Hire Reporting

• Report new hires within 20 days of hire
• Colorado State Directory of New Hires
  PO Box 2920
  Denver, CO 80201-2920
• Fax: 303-297-2595
• Report Colorado new hires online

Colorado Child Support

• The Family Support Registry
  PO Box 2171
  Denver, Colorado 80201-2171
• Phone: 303-299-9123
• Email: fsrcustomerservice@state.co.us
• Remit payments online

Additional Resources

• Colorado Department of Revenue
• Colorado Department of Labor and Employment
• Colorado Office of Economic Security – State Directory of New Hires
• Colorado Office of Economic Security – Division of Child Support Services