Make employment in Colorado easy. Let us handle payroll, benefits, taxes, compliance, and even stock options for your team in Colorado, all in one easy-to-use platform.
Home to the breathtaking beauty of the Rocky Mountains, Colorado also boasts thriving tech scenes in both Denver and Boulder.
With a robust job market, a strong commitment to sustainability, and a high quality of life, The Centennial State is a highly sought-after destination for both employers and employees alike.
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In Colorado, workers’ rights are protected by numerous employment and labour laws, at both the state and federal level. As a result, employees enjoy protection from discrimination based on age, religion, sexual orientation, gender, and race.
Here are the key things you need to know about hiring in Colorado.
Work and overtime laws in Colorado are governed by the state’s Department of Labour and Employment.
Full-time employment is generally considered to be between 32 and 40 hours per week.
Non-exempt employees are entitled to overtime pay of 1.5x their regular pay rate if they work more than 40 hours in a week.
Under the federal Fair Labour Standards Act, employees are generally (but not always) exempt from overtime if they:
Earn more than the state or federal exemption threshold
Perform a role with duties that are
Work in a certified or licensed profession, such as law, accounting, architecture, or engineering
In Colorado, the annual salary threshold for exemption is currently $50,000 (or $31.41 per hour for “highly technical” IT professionals).
Note that the state exemption threshold will increase in both 2024 and 2025, while the federal salary threshold for exemption is currently being reviewed.
The minimum wage for private sector employees in Colorado is $14.42 per hour.
We can help you get your new employee started in Colorado fast. Note that our minimum onboarding time (MOT) is dependent upon registration with the local authorities, and begins after the employee has submitted all the required information on the Remote platform.
For non-citizens of the US, a work eligibility assessment may be required, and can add three extra days to the onboarding time. If a follow-up is needed, there may be additional delays.
Please note that payroll cut-off dates can impact the actual first day of employment. Remote’s payroll cut-off date is the 10th of the month, unless otherwise specified.
Under state law, employees must be paid at least once per month.
For Remote customers, employee payments are made twice per month in equal installments, payable in arrears. The first payment is made on the 15th of the month and the second payment is made on the final day of the month. If relevant, bonus payments, commissions, and expense reimbursements are included in the second payment of the cycle.
Remote can help you craft a competitive benefits package to attract and retain the best global talent. Our benefits experts understand the trends, requirements, and expectations of Colorado's labour market, allowing your employees to feel appreciated and thrive.
Our benefits packages in Colorado usually include some or all of the following:
Under the federal Affordable Care Act, organisations with a headcount of 50 or more must offer statutory health insurance to their full-time employees.
Many employers also offer some level of supplemental health insurance. While this can lead to a relative rise in employment costs, it’s an essential benefit that ensures your people have access to routine care and are covered in the event of an emergency.
Because Remote is the employer of record (EOR), it’s important for us to offer the same core benefits to all employees to ensure fair and non-discriminatory hiring practices. This protects both your business and ours.
Note that we do not add a markup on any benefits premiums or administration costs.
Yes; organisations must offer a retirement plan to their employees. You can either choose your own qualified savings plan, or enrol your employees into the state-sponsored Colorado Secure Choice Savings Program.
Note that this only applies if your business:
Failure to enrol can result in a fine of $100 per employee, per year (up to a maximum of $5,000).
Colorado, like many other countries, treats self-employed individuals or contractors and full-time employees differently. Misclassification of contractors in Colorado may lead to fines and penalties for the offending company.
Employment taxes and statutory fees affect both your payroll and your employees' paychecks in Colorado. Note that your employees may be liable for additional local taxes.
Employer taxes
0%
Federal unemployment insurance tax (FUTA) (charged on the first $7,000 an employee earns per year)
0.0% to 10.39%
State unemployment insurance tax (SUTA)
0.0%
FICA (Social security)
0.00%
FICA (Medicare)
Employee taxes
0% to 37%
Federal income tax
0.0%
State income tax
0.0%
FICA (Social security)
0.00%
FICA (Medicare)
In Colorado, there is no state or federal law that requires employers to provide paid or unpaid vacation leave to their employees, although many organisations do.
Under state law, all employers must provide one hour of paid sick leave for every 30 hours worked. Under the state’s FAMLI Program, eligible employees are also entitled to up to 12 weeks’ paid leave for serious health conditions, or the caring of a family member with a serious health condition. Can an employer deny sick time in Colorado? Under the federal Family and Medical Leave Act (FMLA), eligible employees are entitled to up to 12 weeks of unpaid sick leave per year, provided they: - Have worked for the same employer for at least 12 months - Work in a location where at least 50 people are employed by the company within a 75-mile radius
Under the state’s FAMLI Program, eligible employees are entitled to up to 12 weeks’ paid parental leave. Employees who experience pregnancy or childbirth complications are also entitled to an additional four weeks’ paid leave. Employees are also entitled to up to 12 weeks of unpaid maternity or paternity leave under the FMLA.
Employers are not legally required to provide bereavement leave to their employees, although most organisations offer unpaid leave.
Employees must report for jury duty if summoned (unless exempt). Jurors are typically “on call” for two weeks. Do employers have to pay for jury duty in Colorado? Yes. Employers must pay up to $50 per day for the first three days of the service. Employers can also not penalize or terminate an employee on jury duty.
Like nearly all US states, Colorado is an “at-will” state. This means both employers and employees can end the employment relationship without reason, provided it is legal.
Remote’s legal experts can help you navigate terminations to ensure employees are only let go fairly, negating any potential legal complications.
Employers and employees are not required to provide notice of termination, unless otherwise stated in the employment contract.
Despite this, it's usually customary for employees to provide two weeks' notice when leaving an organisation.
Employers are not legally required to provide severance pay (unless it is stipulated in the employee's contract or in the company policy).
However, employers must pay any accrued but unused vacation time.
There is no requirement to provide a probation period for employees, although many companies implement internal probation policies. These policies typically involve a formal performance evaluation after a specified period, such as three or six months.
Colorado has a dynamic economy driven by industries such as technology, energy, tourism, and agriculture. With unique payroll regulations, including a higher minimum wage, strict overtime laws, and state-specific tax requirements, employers in Colorado must ensure compliance with both state and federal payroll laws. Understanding these regulations is essential to avoid penalties and maintain smooth payroll operations.
Employers in Colorado must adhere to various payroll regulations, including minimum wage laws, state income tax, and unemployment insurance contributions. Below is a breakdown of key payroll components:
Minimum Wage: As of 2024, Colorado’s minimum wage is $14.42 per hour for non-tipped employees and $11.40 per hour for tipped employees. Some municipalities, such as Denver, have higher minimum wages.
Overtime Rules:
Colorado has a flat income tax rate of 4.4% for all employees.
Employers must withhold state income tax and remit it to the Colorado Department of Revenue.
Employers must contribute to Colorado’s Unemployment Insurance (UI) program, managed by the Colorado Department of Labour and Employment (CDLE).
Hiring contractors in Colorado can be a strategic and cost-effective way for businesses to complete projects without the obligations of hiring full-time employees. Whether you are engaging independent contractors for specialized services or bringing in subcontractors for various projects, understanding Colorado's laws and federal regulations is essential.
Remote helps businesses stay compliant when hiring contractors globally with these key features:
Global compliance support: Ensures adherence to labour laws in 200+ countries with localized contracts and proper documentation.
Misclassification protection: Includes built-in compliance checks and seamless contractor-to-employee conversion.
Centralized documentation: Maintains essential records for audits and automates tax filings (e.g., 1099s for U.S. contractors).
Legal expertise: Provides guidance on complex local labour laws, simplifying international hiring.
Remote’s streamlined approach minimizes compliance risks and simplifies contractor management for businesses.
Remote simplifies contractor payments with:
Automated processing: One-click approvals, bulk payments, recurring invoices, and real-time tracking.
Our employer of record (EOR) service enables you to hire, manage, and pay top talent in Colorado with speed and simplicity.
Remote’s EOR allows your company to legally hire employees in any country or US state — including Colorado — wherever your business is based, without having to set up a local legal entity.
On paper, Remote is the official employer, and we handle compliance, payroll, benefits (including equity), and other HR processes — but you maintain full control over the hire’s day-to-day management and work responsibilities. Learn more.
An EOR may be ideal if your company:
Needs to hire employees in Colorado but doesn’t want to establish a legal entity there
Is testing local markets before committing to a full business expansion
Wants to ensure full compliance with federal, state, and local employment laws and tax requirements
Needs a fast, cost-effective way to onboard employees in the state
Needs a temporary hiring solution before establishing a legal entity
Colorado attracts businesses with its strong economy, skilled workforce, and vibrant startup ecosystem, especially in tech, aerospace, and renewable energy. Whether you’re a startup expanding across the west or an SMB ready to build a distributed team, managing HR, payroll, and compliance across state lines can quickly become overwhelming. That’s where a professional employer organisation (PEO) can help.
A professional employer organisation (PEO) is a third-party provider that helps businesses handle key HR functions. These typically include payroll, benefits administration, tax filings, and employment law compliance. With a PEO, your business enters into a co-employment relationship, meaning the PEO takes on the administrative and legal tasks related to employment — while you retain full control over day-to-day management of your team.
For small to midsize companies, a PEO can provide enterprise-grade HR services without the cost or complexity of building an in-house department.
As mentioned, a PEO operates through a co-employment model, which requires your company to be registered and operating in Colorado.
In contrast, an employer of record (EOR) acts as the legal employer on your behalf. EORs are typically used for hiring in states (or countries) where your business doesn’t yet have a legal presence. If you’re hiring your first employee in Colorado and don’t yet have an entity or tax setup, an EOR may be a better fit initially.
Working with a PEO in Colorado offers several advantages, such as:
£23
Per employee/month
Robust, transparent global payroll
Straightforward self-service platform
Dedicated specialists providing tailored support
Comply with local payroll rules in each country
Consolidated benefits administration
HR Core included as standard
£23
Per contractor/month
Pay only for contractors you actively engage with
Collaborate with international contractors
Draft, amend and sign tailored, localised contracts
Approve contractor invoices with a single click or by enabling auto-pay
Transparent payments with full visibility
Comes with HR Core as standard
£559
per employee/month
Recruit without setting up a local entity in 90+ countries
Onboarding handled by a dedicated specialist
Local payroll processed punctually, every time
Built-in compliance protections
Competitive, flexible and locally tailored benefits
Dedicated in-house specialists for local support
Comes with HR Essentials as standard
Under state and federal law, employers must grant unpaid leave to employees who are members of the military or the National Guard for military duty or training. These employees have the right to take time off for their military obligations, and employers are prohibited from discriminating against them based on their military service.
The wage base for UI tax in Colorado is $20,400.
UI tax rates vary based on an employer’s experience rating and range from 0.75% to 10.39%.
As of 2024, Colorado requires employers and employees to contribute to the Family and Medical Leave Insurance (FAMLI) program.
The total contribution rate is 0.9% of an employee’s wages, split evenly between employers and employees.
FAMLI provides paid leave benefits for eligible employees needing time off for medical or family-related reasons.
Colorado law requires all employers to carryworkers’ compensation insurance , regardless of the number of employees.
This insurance covers medical expenses and lost wages for employees injured on the job.
Employers must register for a Colorado Withholding Account Number with the Colorado Department of Revenue.
State withholding tax returns must be filed quarterly or annually, depending on employer classification.
UI tax reports must be submitted quarterly to the Colorado CDLE.
Payroll tax payments can be made electronically through Colorado Revenue Online.
Local Minimum Wage Differences: Some Colorado cities, including Denver, have higher minimum wages than the state rate.
Final Paycheck Rules:
New Hire Reporting: Employers must report new hires to the Colorado State Directory of New Hires within 20 days.
Paid Sick Leave:
Payroll Recordkeeping: Employers must maintain payroll records for at least three years to comply with state and federal laws.
Right-to-Work Status: Colorado is not a right-to-work state, meaning employees can be required to join or pay fees to a union if applicable.
Managing payroll in Colorado requires careful attention to state-specific regulations, including minimum wage laws, paid family leave, and payroll tax requirements. Employers must stay informed about tax rates, wage laws, and reporting deadlines to ensure smooth payroll processing and avoid penalties.
For businesses looking to simplify payroll management, Remote’s payroll solutions provide automated payroll processing, tax filing, and compliance support tailored to Colorado’s regulations. With Remote, employers can focus on business growth while ensuring accurate and hassle-free payroll operations.
To see just how easy global payroll can be, book a demo today.
Cost and compliance: Fair price guarantee (pay only for active contractors), built-in compliance with regional regulations, and localized contracts.
Learn more about how Remote simplifies contractor management in Colorado —get started for free today.
Key benefits of hiring through our EOR in Colorado include:
Faster market entry . You can hire talent quickly, without having to wait months to establish a local entity.
Full compliance with local employment laws . Avoid the legal risks associated with non-compliance and misclassification.
Simplified payroll management . We automate payroll tax calculations and ensure you are fully compliant with all federal, state, and local withholding obligations, even when laws change.
Lower costs. Setting up a legal entity in Colorado can be costly and time-consuming. An EOR eliminates the need for entity registration, reducing overhead expenses.
Fewer resources required. With HR, payroll, and compliance managed by the EOR, your company can concentrate on scaling operations and assigning your resources elsewhere.
It’s also crucial to note that, at Remote, we own all our own legal entities. As a result, we don’t need to rely on third parties, which can incur delays and extra costs, and result in a negative employee experience. All our EOR services — including the dedicated support of our local specialists — are provided in-house.
To learn more — and to see our EOR platform in action — book a demo with one of our friendly experts today.
Compliance with state employment laws and tax regulations
Access to affordable, competitive employee benefits packages
Reduced administrative burden around payroll and HR documentation
Simplified onboarding, performance tracking, and employee offboarding
Minimized risk around misclassification, workplace policies, and employee relations
Colorado employers must also navigate unique state laws, including workers’ compensation requirements and specific tax obligations. Remote’s PEO helps you stay compliant while keeping your HR operations lean and efficient.
To partner with a PEO in Colorado, your business must have a registered legal entity in the state. Once that’s in place, our PEO service takes on your HR administration tasks such as running payroll, administering benefits, and filing local and federal taxes.
Remote’s PEO services integrate seamlessly into your operations, whether you're hiring your fifth employee or your 50th. You maintain full control over how your team works while we handle the operational complexities behind the scenes.
If your company is legally established in Colorado and you're looking for a scalable way to manage HR, a PEO is an ideal solution. You’ll gain access to expert support, reduce your compliance risk, and free up time to focus on growth.
If you're just entering Colorado and don’t yet have a legal entity, consider starting with an EOR and transitioning to a PEO as you scale.
Remote makes it easy to manage HR, payroll, and compliance across all 50 states. Learn more about our PEO services and how we can support your team’s growth in Colorado.