Colorado employer payroll tax calculator 2026
Hiring in Colorado? New Colorado employers pay 3.05% state unemployment tax on the first $30,600 of each employee's wages, on top of the federal 6.2% Social Security, 1.45% Medicare and FUTA. For a $60,000 employee that's about $5,565 a year in employer payroll taxes — $933.30 of it to Colorado.
| Wages | $60,000.00 |
| Employer Social Security | $3,720.00 |
| Employer Medicare | $870.00 |
| FUTA (0.6% on $7,000.00) | $42.00 |
| State unemployment insurance (SUI) (3.05% on $30,600.00) | $933.30 |
| Employer payroll taxes | $5,565.30 |
| Total cost before benefits | $65,565.30 |
Per two-week payroll: $2,521.74. Add health insurance, retirement and workers' compensation in the cost of an employee calculator.
Colorado unemployment tax (SUTA) for new employers
Non-construction and general construction employers start at 3.05% in 2026; heavy construction starts at 6.285%. The rate is 1.53% base + 0.17% support surcharge + 1.35% solvency surcharge.
After a few years the state assigns your own rate based on your layoff history; enter it in the calculator once you have it. Your rate also earns the usual federal FUTA credit: pay Colorado on time and FUTA is 0.6% on the first $7,000. If Colorado ends up a credit-reduction state for the year (the Department of Labor lists them each November), FUTA is higher.
Other Colorado payroll programs
- FAMLI (paid family and medical leave), employer share: The premium is 0.88% of wages, half paid by the employer. Employers with 9 or fewer employees pay only the employee half, which they may withhold.
- Denver, Aurora and a few other cities charge a flat monthly occupational privilege tax per employee.
What an employee costs in Colorado
| Salary | Federal employer taxes | Colorado employer taxes | Total cost | Taxes as % of pay |
|---|---|---|---|---|
| $40,000 | $3,102.00 | $933.30 | $44,035.30 | 10.1% |
| $60,000 | $4,632.00 | $933.30 | $65,565.30 | 9.3% |
| $100,000 | $7,692.00 | $933.30 | $108,625.30 | 8.6% |
A year, before benefits. New-employer rates, 5 employees, full FUTA credit.
How much does a $40,000 employee cost in Colorado?
About $44,035 a year: the $40,000 salary plus $3,102.00 of federal employer taxes and $933.30 of Colorado employer taxes, before benefits. That's $1,693.67 per two-week payroll.
How much does a $60,000 employee cost in Colorado?
About $65,565 a year: the $60,000 salary plus $4,632.00 of federal employer taxes and $933.30 of Colorado employer taxes, before benefits. That's $2,521.74 per two-week payroll.
How much does a $100,000 employee cost in Colorado?
About $108,625 a year: the $100,000 salary plus $7,692.00 of federal employer taxes and $933.30 of Colorado employer taxes, before benefits. That's $4,177.90 per two-week payroll.
Both halves of one paycheck
On a $60,000 salary paid every two weeks, the employee sees $12,272 a year taken out of pay — federal income tax, their own Social Security and Medicare and Colorado taxes — and takes home $47,728 (single filer, standard W-4). That money is withheld from their wages, not an extra cost to you. On top of the salary, you pay $5,565.30 of employer taxes. See the employee's side line by line in the Colorado paycheck calculator.
More employer tools
Cost of an employee (benefits and cost per hour) · Employer payroll tax calculator (all states) · Employer payroll taxes guide
Colorado figures checked 2026-09-28 against the state's own publications. Planning estimate, not a payroll return: your rate notice and the state's rules decide the final amount.
Sources
- Colorado CDLE — Introductory rates — 2026 combined rate 3.05% (0.0153 + 0.0017 + 0.0135); heavy construction 6.285% (checked 2026-09-28)
- Colorado CDLE — Premium rates — 2026 chargeable wage base $30,600
- Colorado FAMLI — Employers — 0.88% of wages, 0.44% employer and 0.44% employee; up to the Social Security wage cap; nine or fewer employees remit 0.44%
- IRS Publication 15 (2026), Employer's Tax Guide — 2026 employer Social Security and Medicare rates and wage limits; FUTA
- IRS — FUTA credit reduction — 6.0% FUTA on the first $7,000; usual 5.4% credit; credit-reduction states lose part of the credit
- U.S. Department of Labor — FUTA credit reductions — the list of credit-reduction states for each year (checked 2026-09-28)
Questions
What is the Colorado SUTA rate for new employers?
3.05% in 2026 (1.53% base + 0.17% support surcharge + 1.35% solvency surcharge), on the first $30,600 of each employee's wages. Non-construction and general construction employers start at 3.05% in 2026; heavy construction starts at 6.285%.
What is the Colorado unemployment tax wage base for 2026?
$30,600 per employee per year.
How much does it cost to employ someone for $60,000 in Colorado?
About $65,565 a year before benefits: $4,632.00 of federal employer taxes and $933.30 for Colorado, at the new-employer rate with 5 employees.