Denver, Colorado
Denver employer costs: minimum wage, taxes and paid leave
Denver sets its own minimum wage and charges employers an Occupational Privilege Tax per employee. The minimum wage is $19.84 an hour from Jan 1, 2027. A $50,000 employee costs a new employer about $62,791 a year here in 2026.
Calculate the cost of an employee in Denver
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.
Denver employer rules on top of Colorado's
What Denver adds, then the federal and Colorado lines every employer here pays. The full Colorado breakdown is on the state page.
- Denver minimum wage
$19.29 in 2026, $19.84 in 2027
$19.29 an hour; $19.84 from Jan 1, 2027.
per Denver Labor (Denver Auditor's Office), as of Jan 1, 2026
- Occupational Privilege Tax (employer share)
$4 a month per employee
Employers pay $4.00 a month for each employee who earns at least $500 in a month for work in Denver (employees pay $5.75 more, withheld).
per City and County of Denver, Department of Finance, as of Jan 1, 2026
- 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
Checked against each source on Oct 23, 2026.
Two worked examples in Denver
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 |
| Occupational Privilege Tax (employer share)$4 a month | $48 |
| 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 | $62,791 |
25.6% on top of pay · $30.90 per hour worked
Hourly employee at $20 an hour
$20 an hour for 40 hours a week, 52 weeks.
| Pay for hours worked2,032 hours | $40,640 |
|---|---|
| Paid sick leave required by law48 hours | $960 |
| Social Security (employer share)6.2% of $41,600 | $2,579 |
| Medicare (employer share)1.45% of $41,600 | $603 |
| 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 $41,600 | $183 |
| Occupational Privilege Tax (employer share)$4 a month | $48 |
| Workers' compensation (state index rate)$1.05 per $100 of payroll | $437 |
| Health insurance (single coverage, state average)average employer contribution | $7,198 |
| Total cost a year | $53,624 |
28.9% on top of pay · $26.39 per hour worked
What changes in 2027
- Denver's minimum wage becomes $19.84 an hour on Jan 1, 2027. per Denver Labor (Denver Auditor's Office), as of Jan 1, 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
What is the Denver minimum wage in 2027?
$19.84 an hour from Jan 1, 2027, up from $19.29: $41,267 for a full-time year in Denver.
What is the minimum wage in Denver in 2026?
$19.29 an hour in Denver, or $4.13 above Colorado's $15.16.
How much does an employee cost in Denver?
$62,791 a year for a $50,000 employee of a new Denver employer with 10 staff (25.6% above pay), $48 more than elsewhere in Colorado because of Denver's own charges.
What payroll taxes do employers pay in Denver?
Occupational Privilege Tax (employer share) on top of $5,020 of federal and Colorado payroll taxes on a $50,000 salary.
Is paid sick leave required in Denver?
Yes, under Colorado's rule: 48 paid hours a year for a full-time Denver employee at 100 staff.
What does a minimum-wage employee cost in Denver?
$52,012 a year at $19.29 an hour full time in Denver: $25.60 per hour worked.
Who pays the Occupational Privilege Tax?
Employers pay $4.00 a month for each employee who earns at least $500 in a month for work in Denver (employees pay $5.75 more, withheld). On a $50,000 employee that is $48 a year.
More employer cost pages
Colorado
Other cities with their own rules
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.