Employer of Record for Colorado

In Colorado, workers’ rights are protected by numerous employment and labor 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.

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Do I Need an EIN or Payroll Tax Number To Employ in Colorado?

Yes, to employ in Colorado, you need both a Federal Employer Identification Number (EIN) and a Colorado Payroll Tax Account Number.

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Working Hours in Colorado

40-hour work week. 8 hours per day for 5 days.

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What Is Considered Full-Time Employment in Colorado?

In Colorado, full-time employment is generally considered to be working 30 to 40 hours per week, though there is no specific state law defining full-time hours.

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Probation Period in Colorado

There is no state-mandated probation period for new employees, but many employers implement one as a company policy.

Minimum Wage in Colorado

State minimum wage is set at $14.42 per hour.

Certain local jurisdictions in Colorado have established higher minimum wage rates:

• Denver: The citywide minimum wage is $18.29 per hour
• Boulder County: The minimum wage is $15.69 per hour
• Edgewater: The minimum wage is $15.02 per hour

Employers are required to pay the highest applicable minimum wage rate based on the employee's work location.

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Colorado Anti-Discrimination Laws

Colorado has comprehensive anti-discrimination laws that protect employees from discrimination in the workplace. The Colorado Anti-Discrimination Act (CADA), along with federal laws, provides strong protections for employees based on various protected characteristics.

Employees are protected from discrimination based on race, color, national origin, ancestry, sex, age (40 and older), disability, religion, sexual orientation, gender identity, marital status, and pregnancy.

Most employers opt for biweekly (every two weeks) or semimonthly (twice a month) pay cycles.

Employment taxes and statutory fees affect both your payroll and your employees’ paychecks in Colorado. Understanding the tax obligations for both employers and employees is crucial when operating in Colorado's business landscape. This section explains how taxes and statutory fees affect payroll and individual earnings in Colorado. Note that employees may be liable for additional local taxes in certain cities and jurisdictions.

Employer Tax Contributions

New employers in Colorado start at 3,05% towards the state unemployment insurance fund. The rates for established employers usually ranges between 0.81% to 12.34%.

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Employee Payroll Tax Contributions

Additional Medicare Tax: Employees earning over $200,000 annually pay an extra 0.9% in Medicare taxes; employers are not required to match this additional amount.

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Tax Due Dates in Colorado

In Colorado, the state income tax filing deadline aligns with the federal deadline, which is typically April 15.

Pension in Colorado

• Private-sector employers with five or more employees, who have been in business for at least two years, and do not offer a qualified retirement plan are required to participate in the Colorado SecureSavings Program.
• This state-facilitated program mandates that eligible employers automatically enroll their employees in a Roth Individual Retirement Account (IRA), with contributions made through payroll deductions. Employees have the option to opt out.
• Employers must register with the program, facilitate payroll deductions, and remit contributions. They are not required to match employee contributions.

In Colorado, employers are required to provide certain benefits to employees to comply with state and federal laws.

As part of our global employment services, Playroll can create a globally compliant and competitive compensation package that can help you attract and retain top talent in the US.

Employee Benefits For Colorado

Competitive benefits are essential for attracting and retaining top talent in Colorado. Offering the right package helps employees feel valued and motivated. Our benefits experts understand the local labor market's trends, requirements, and expectations, ensuring your employees feel valued and supported. Common benefits in our Colorado packages include:

• Pension or 401(K)
• Vision Insurance
• Life Insurance
• Medical Insurance
• Dental Insurance
• Health Savings Plan (HSA)
• Flexible Spending Account (FSA)

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Are Employers Required To Provide Health Insurance in Colorado?

Employers with 50 or more full-time employees are required to offer health insurance that meets ACA (Affordable Care Act) standards. Colorado does not mandate health insurance for employers with fewer than 50 employees.

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Do Part-Time Employees Get Benefits in Colorado?

• Paid Sick Leave: Part-time employees are eligible for paid sick leave under Colorado’s HFWA.
• Family and Medical Leave Insurance: Part-time employees contribute to the FAMLI program and are eligible for paid family and medical leave based on their earnings.
• Workers' Compensation Insurance: All employees, including part-time workers, are covered by workers' compensation insurance to protect them in case of work-related injuries or illnesses.
• Unemployment Insurance: Part-time employees may be eligible for unemployment benefits in Colorado if they meet the state’s requirements for wages earned and work history.
• Retirement Savings: Part-time employees at eligible employers (those without existing retirement plans and five or more employees) can participate in the Colorado SecureSavings Program

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Are Employers Required To Offer 401k in Colorado?

Colorado employers are not required to offer a 401(k) plan, but many are required to provide retirement savings access through the Colorado SecureSavings Program if they don’t already offer a retirement plan like a 401(k).

Is Vacation Leave Mandatory in Colorado?

No, Colorado does not require employers to provide paid or unpaid vacation leave.

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Mandatory Leave Policies in Colorado

Below are the mandatory leave entitlements for full-time employees in Colorado.

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Paid Time Off in Colorado

In Colorado, employers aren't required to offer PTO, but if provided, all earned PTO must be paid out upon separation. "Use-it-or-lose-it" policies are not allowed, though caps on accrual are permitted.

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Maternity Leave In Colorado

• Colorado Family and Medical Leave Insurance (FAMLI) Program:
• Provides up to 12 weeks of paid leave for childbirth and bonding with a new child. An additional 4 weeks are available for pregnancy or childbirth complications.

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Paternity Leave In Colorado

• In Colorado, paternity leave is supported through both federal and state programs, providing fathers with the opportunity to bond with their newborn or newly adopted children.
• Colorado Family and Medical Leave Insurance:
• Provides up to 12 weeks of paid leave for bonding with a new child through birth, adoption, or foster care. An additional 4 weeks are available for pregnancy or childbirth complications.

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Sick Leave In Colorado

• In Colorado, paid sick leave is required under the Healthy Families and Workplaces Act (HFWA).
• All Colorado employees, including part-time and seasonal workers, are eligible for paid sick leave. Employees earn one hour of paid sick leave for every 30 hours worked, up to a maximum of 48 hours per year.
• Unused sick leave can be carried over to the following year, capped at 48 hours per year.

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Military Leave in Colorado

• Employees are entitled to take leave for the entire period of their military service, whether it's for training or active duty. Private-sector employees who are members of the Colorado National Guard or the reserve forces of the United States are entitled to a leave of absence from employment in order to receive military training with the United States armed forces for the equivalent of three weeks of work on the employee's regular work schedule each year.
• Employers must allow employees on military leave to continue accruing benefits, such as seniority and pension rights, as if they had remained continuously employed.

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Jury Duty in Colorado

• In Colorado, employers are required to provide leave for employees summoned for jury duty. 
• This obligation applies to all employees, including full-time, part-time, temporary, and casual workers, provided they have been employed for at least three months prior to the summons. 
• During the first three days of jury service, employers must pay regular wages, up to $50 per day, unless a higher amount has been mutually agreed upon. 
• After the third day, the state compensates jurors at a rate of $50 per day. Employers are prohibited from penalizing employees for fulfilling their jury duty obligations.

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Parental Leave In Colorado

The Colorado Family and Medical Leave Insurance (FAMLI) program offers up to 12 weeks of paid leave for bonding with a new child through birth, adoption, or foster care. An additional 4 weeks are available for pregnancy or childbirth complications.

When it comes to terminating employment in Colorado, understanding the legal obligations regarding severance pay and contributions is essential. Below is a detailed overview of the key considerations for both employers and employees.

Termination Process in Colorado

In Colorado, the termination of employment is primarily governed by the at-will employment doctrine, meaning that either the employer or the employee can terminate the employment relationship at any time, with or without cause or notice

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Notice Period in Colorado

In Colorado, no specific notice period is legally required before terminating an employee.

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Severance in Colorado

Colorado law does not mandate severance pay. If an employer terminates an employee, all earned wages and compensation are due immediately. If an employee resigns, the final wages are due on the next regular payday.