Colorado Payroll Compliance
Every rate, wage base, and local override Colorado employers need for 2026 — sourced from CDLE, the Dept. of Revenue, and the FAMLI Division — including the city-by-city minimum wage schedules that change every January.
Minimum Wage & Hours
Colorado’s statewide minimum wage is $15.16/hour for 2026, set annually by CDLE’s PAY CALC Order under Amendment 70’s CPI-indexing formula. Colorado is one of a small number of states with its own daily overtime rule in addition to the federal weekly threshold.
| Item | 2026 Value | Notes |
|---|---|---|
| Statewide minimum wage | $15.16/hr | CPI-W indexed annually via PAY CALC Order |
| Tipped cash wage | $12.14/hr | Fixed $3.02 tip credit; tipped employee earns >$30/month in tips |
| Daily overtime threshold | 12 hrs/day | Plus the standard 40 hrs/week federal trigger — whichever is higher |
| Extended shift pay | 15+ hrs/day | Extra hour’s pay at minimum wage on top of overtime |
| Exempt salary threshold | $57,784/yr | Rises annually with the PAY CALC Order |
| Meal break | 30 min, uninterrupted | Required for shifts over 5 consecutive hours |
| Statute | COMPS Order / PAY CALC Order | 7 CCR 1103-1 and 7 CCR 1103-14, republished annually |
Local Minimum Wage Ordinances
A 2019 Colorado law lets local governments set their own minimum wage above the state floor, and three jurisdictions have — each running its own independent schedule and CPI methodology. Denver’s rate is now 27% above the state minimum.
| Jurisdiction | 2026 Rate | Notes |
|---|---|---|
| Denver | $19.29/hr | $16.27/hr tipped; CPI-adjusted annually by the city |
| Edgewater | $18.17/hr | Published schedule: $19.99 (2027), $21.99 (2028) |
| Boulder (city & unincorp. county) | $16.82/hr | Separate city and county ordinances; verify jurisdiction |
| Rest of Colorado | $15.16/hr | Statewide PAY CALC Order rate applies |
State Income Tax Withholding
Colorado applies a flat 4.40% rate to all taxable wages. On top of state withholding, four Colorado cities impose an Occupational Privilege Tax — a flat monthly “head tax” owed by both employer and employee once a wage threshold is crossed.
| Item | 2026 Value | Notes |
|---|---|---|
| Withholding rate | 4.40% flat | Same rate at every income level |
| Withholding return | Form DR 1094 | Filed quarterly, monthly, or weekly by annual liability tier |
| Withholding certificate | Form DR 0004 | Colorado-specific; optional but recommended for accuracy |
| Annual W-2 transmittal | Form DR 1093 | Due January 31; e-filing required at 10+ W-2s |
| Reciprocity | None | Colorado has no reciprocal withholding agreements with any state |
| Denver OPT | Threshold: $500/month | Both employee and employer portions; $4/month fee even at zero wages |
| Other OPT cities | Glendale, Greenwood Village, Sheridan | Aurora repealed its OPT effective Jan 1, 2025 |
Family & Medical Leave Insurance (FAMLI)
Colorado’s FAMLI premium drops to 0.88% for 2026, split evenly between employer and employer at 0.44% each — though employers with fewer than 10 workers owe no employer share. Starting in 2026, a new NICU leave expansion adds significant benefit duration for families with hospitalized newborns.
| Item | 2026 Value | Notes |
|---|---|---|
| Total premium rate | 0.88% | Down slightly from the 2025 rate |
| Employer share | 0.44% | Waived for employers with fewer than 10 employees |
| Employee share | 0.44% | Withheld from all covered employees regardless of employer size |
| Wage cap | $184,500 | Aligned to the 2026 Social Security (OASDI) wage base |
| Max weekly benefit | $1,381.45 | Sliding scale based on average weekly wage |
| Standard leave duration | Up to 12 weeks | Bonding, family care, or personal medical leave |
| NICU leave expansion | +12 weeks | New for 2026 (SB 25-144); on top of standard bonding leave |
| Eligibility | $2,500 in wages | Over the last 5 completed calendar quarters |
| Rate-setting schedule | By Sept 1, prior year | FAMLI Director sets each year’s rate in advance, starting 2026 |
Unemployment Insurance (SUI)
Colorado’s SUI wage base jumped to $30,600 for 2026, up from $27,200. A solvency surcharge applies on top of the base rate whenever the state UI Trust Fund reserve ratio falls below 0.7% — which is the case for 2026.
| Item | 2026 Value | Notes |
|---|---|---|
| SUI taxable wage base | $30,600 | Up from $27,200 in 2025 |
| New employer rate | ~3.05% | Varies by industry classification — confirm exact rate via CDLE |
| Solvency surcharge | In effect for 2026 | Triggered when the UI Trust Fund reserve ratio is below 0.7% |
| Filing portal | MyUI Employer+ | Quarterly wage reports and premium remittance |
| Quarterly deadlines | Apr 30 / Jul 31 / Oct 31 / Jan 31 | Same schedule as FAMLI premiums |
Official Colorado .gov Resources
Verify every figure and register for accounts at the source. These are the agencies Colorado employers work with for payroll.