Colorado · 2026 and 2027
Colorado employer payroll taxes and employee cost: 3.05% SUTA on $30,600
In Colorado, a $50,000 employee costs a new employer about $62,743 a year in 2026: 25.5% on top of pay for payroll taxes, unemployment insurance, state leave premiums, workers' comp and health coverage. Change any input to see your own number.
Calculate the cost of an employee in Colorado
Estimates for planning, not tax or legal advice. Rates change and some depend on your business; confirm yours with your state agencies, insurer or payroll provider.
What a Colorado employer pays on top of pay
Every line of the calculator, explained, with the official source of each number.
- Social Security and Medicare
7.65% of pay
The employer matches the employee: 6.2% Social Security on pay up to $184,500 in 2026 ($192,300 in 2027) and 1.45% Medicare on all pay.
per Social Security Administration, as of Jan 1, 2026
- Federal unemployment tax (FUTA)
$42 per employee
6% of the first $7,000 of each employee's pay, less the 5.4% credit for paying Colorado unemployment tax on time.
per Internal Revenue Service, as of Jan 1, 2026
- Colorado unemployment insurance (SUTA)
3.05% of $30,600
New employers pay 3.05% on the first $30,600 of each employee's pay in 2026; construction 3.05%. After two to three years the rate follows your own claims history. The 2027 wage base is $32,100. Beginning rate 1.53% + support rate 0.17% + solvency surcharge 1.35%.
per U.S. Department of Labor, Employment and Training Administration, as of Jan 1, 2026; per Colorado Department of Labor and Employment, as of Jan 1, 2026; per Colorado Department of Labor and Employment, as of Jan 1, 2027
- FAMLI (employer share)
0.44% from 10+ employees
Employers with 10 or more employees pay at least half of the 0.88% premium in 2026 (0.86% in 2027), on wages up to the Social Security wage base; smaller employers pay no employer share.
per Colorado FAMLI Division (CDLE), as of Jan 1, 2026
- Paid sick leave
48 hours a year
One hour of paid leave per 30 hours worked, up to 48 hours a year, for every employer. The hours are paid but not worked, so they raise the cost per hour worked.
per Colorado Department of Labor and Employment, as of Jan 1, 2022
- Workers' compensation
$1.05 per $100 of payroll
Index rate for a standard mix of job classes: rank 28 of 51 (1 = highest) and 96% of the national median in the 2024 study. Your premium depends on your job classes and claims history.
per Oregon Department of Consumer and Business Services, as of Jan 1, 2024
- Health insurance (employer share)
$7,198 single / $18,322 family
Average employer contribution per enrolled employee a year at Colorado private-sector employers that offer coverage, 2025 survey.
per Agency for Healthcare Research and Quality (MEPS-IC), as of Jan 1, 2025
- Minimum wage
$15.16 in 2026, $15.71 in 2027
Colorado's rate since Jan 1, 2026. Denver and other cities set higher local rates From January 1, 2027: $15.71.
per Colorado Department of Labor and Employment, as of Jan 1, 2026
Checked against each source on Oct 23, 2026.
Two worked examples in Colorado
Both for a new employer with 10 employees in a general industry in 2026, with single health coverage at the state average.
Salaried employee at $50,000
A $50,000 salary, 40 hours a week.
| Pay for hours worked2,032 hours | $48,846 |
|---|---|
| Paid sick leave required by law48 hours | $1,154 |
| Social Security (employer share)6.2% of $50,000 | $3,100 |
| Medicare (employer share)1.45% of $50,000 | $725 |
| FUTA (federal unemployment tax)0.6% of $7,000 | $42 |
| State unemployment insurance (new employer)3.05% of $30,600 | $933 |
| FAMLI (employer share)0.44% of $50,000 | $220 |
| Workers' compensation (state index rate)$1.05 per $100 of payroll | $525 |
| Health insurance (single coverage, state average)average employer contribution | $7,198 |
| Total cost a year | $62,743 |
25.5% on top of pay · $30.88 per hour worked
Hourly employee at $18 an hour
$18 an hour for 40 hours a week, 52 weeks.
| Pay for hours worked2,032 hours | $36,576 |
|---|---|
| Paid sick leave required by law48 hours | $864 |
| Social Security (employer share)6.2% of $37,440 | $2,321 |
| Medicare (employer share)1.45% of $37,440 | $543 |
| FUTA (federal unemployment tax)0.6% of $7,000 | $42 |
| State unemployment insurance (new employer)3.05% of $30,600 | $933 |
| FAMLI (employer share)0.44% of $37,440 | $165 |
| Workers' compensation (state index rate)$1.05 per $100 of payroll | $393 |
| Health insurance (single coverage, state average)average employer contribution | $7,198 |
| Total cost a year | $49,035 |
31% on top of pay · $24.13 per hour worked
What changes for Colorado employers in 2027
- The Social Security wage base rises from $184,500 to $192,300: up to $484 more employer tax for employees paid above it. per Social Security Administration, as of Jan 1, 2027
- Colorado's minimum wage becomes $15.71 an hour on January 1, 2027. per Colorado Department of Labor and Employment, as of Jan 1, 2027
- The Colorado unemployment insurance wage base becomes $32,100, with a 1.7% new-employer rate. per Colorado Department of Labor and Employment, as of Jan 1, 2027
- FAMLI (employer share): the employer rate becomes 0.43% of wages. per Colorado Department of Labor and Employment, as of Jan 1, 2027
Only changes already official on Oct 23, 2026. Most states publish next year's unemployment insurance rates in November and December; this page is updated when they do.
Frequently asked questions
How much does it cost to hire an employee in Colorado?
About $62,743 a year in 2026 for a $50,000 employee of a new Colorado employer with 10 staff: $12,743 above pay, of which $7,198 is health coverage, $525 workers' comp and $933 Colorado unemployment tax. At $18 an hour full time: $49,035.
What payroll taxes do employers pay in Colorado?
Colorado payroll taxes on a $50,000 employee come to $5,020 a year for a new employer: $933 of Colorado unemployment insurance at 3.05% on $30,600, $220 for FAMLI, $3,825 of Social Security and Medicare and $42 of FUTA.
What is the Colorado SUTA rate for new employers in 2026?
3.05% on the first $30,600 of each employee's pay: up to $933 per employee a year. Construction: 3.05%. For 2027 the wage base is $32,100 and the rate 1.7%.
What is the minimum wage in Colorado in 2027?
$15.71 an hour from January 1, 2027, after $15.16 an hour in 2026: $32,677 for a full-time year.
Is paid sick leave required in Colorado?
Yes. One hour of paid leave per 30 hours worked, up to 48 hours a year, for every employer. That is 48 paid hours a year for a full-time Colorado employee at 100 employees.
How much does workers' comp cost in Colorado?
$1.05 per $100 of payroll at Colorado's index rate (rank 28 of 51, 96% of the median): about $525 on $50,000 of pay.
How much do Colorado employers pay for health insurance?
$7,198 a year per employee with single coverage and $18,322 with family coverage, the average Colorado private-employer share of $8,816 and $25,055 premiums in 2025.
Does Colorado have a paid family leave or disability tax for employers?
Employers with 10 or more employees pay at least half of the 0.88% premium in 2026 (0.86% in 2027), on wages up to the Social Security wage base; smaller employers pay no employer share.
More employer cost pages
Cities in Colorado with their own rules
States with a similar employer cost
Data and rules for every state
Software and services for these costs
- Payroll Software
Calculates and files these payroll taxes for every state you hire in.
- PEO Services
Takes on payroll taxes, workers' comp and benefits, often at group rates.
- Benefits Administration
Runs the health plan and leave programs behind the benefits lines.
Benefits and workers’ comp are most of this cost
A PEO pools employers for health insurance and workers’ comp, often at group rates. Compare PEOs we research, with verified prices and features.