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Colorado is a fast-growing tech state with a distinctive payroll profile: FAMLI paid family leave, HFWA sick leave, pay transparency job posting requirements, and Denver local minimum wage. Rippling handles Colorado and Denver compliance in one payroll run.
Colorado is one of the fastest-growing technology and outdoor economy states in the US, with Denver, Boulder, and Colorado Springs as major hubs. Colorado payroll is defined by several significant state-specific programs: FAMLI (paid family and medical leave insurance), HFWA (paid sick leave), the Equal Pay for Equal Work Act (pay transparency job postings), and a flat 4.4% state income tax. Denver has its own higher minimum wage.
Colorado is particularly important for companies with remote-distributed workforces, as the Equal Pay for Equal Work Act requires salary ranges in job postings accessible to Colorado applicants — including fully remote roles.
Rippling’s Colorado payroll module provides:
| Contribution | Rate | Notes |
|---|---|---|
| FUTA | 6.0% (net 0.6%) | After SUTA credit; first $7,000 |
| Colorado SUTA | New employer 1.7% | On first $23,800 of wages (2024) |
| FAMLI (employer share) | 0.45% of wages | Employers with 10+ employees only |
| Social Security | 6.2% | Up to $168,600 (2024) |
| Medicare | 1.45% | No wage base limit |
| Workers’ Compensation | Varies by risk class | Mandatory from employee 1 |
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| Contribution | Rate | Notes |
|---|---|---|
| Federal Income Tax | Graduated 10–37% | Per W-4 |
| Social Security | 6.2% | Up to $168,600 (2024) |
| Medicare | 1.45% + 0.9% surtax | Surtax above $200K single |
| Colorado State Income Tax | 4.4% flat | Reduced from 4.55% (TABOR refund) |
| FAMLI (employee share) | 0.45% of wages | Up to SSWB; employers with 10+ employees |
| Colorado Income | CO Rate |
|---|---|
| All income | 4.4% flat (2024) |
Colorado has a flat income tax rate (subject to TABOR adjustments — can decrease in surplus years). Standard deduction follows federal. Withholding via DR 0004 (CO Employee Withholding Certificate). Remitted to CDOR monthly or quarterly.
Final Pay: Colorado requires final pay on the next regularly scheduled payday or within 14 days of termination (whichever is earlier). Accrued PTO must be paid out on termination unless a written policy specifically states otherwise.
Colorado WARN: No separate Colorado WARN Act — federal WARN Act applies.
Colorado FAMLI provides up to 12 weeks of paid leave (16 weeks for pregnancy complications or combined with bonding) at 90% of wages (up to 50% of AWW). Funded by employer (0.45% for 10+ employees) and employee (0.45%) contributions. Leave can be used for serious health conditions, bonding with a new child, military exigency, or safety leave. Rippling manages FAMLI withholding, remittances, and leave administration.
Colorado’s Equal Pay for Equal Work Act (EPEWA) requires employers to include compensation ranges and benefits in all job postings — including remote roles accessible to Colorado applicants. Employers must also notify current employees of promotional opportunities. This applies to all employers with at least one Colorado employee.
Colorado HFWA (Healthy Families and Workplaces Act) requires employers to provide 48 hours paid sick leave per year (accrual at 1 hour per 30 hours worked, or front-loaded). Sick leave can be used for employee or family member illness, domestic violence leave, or public health emergencies. Rippling tracks HFWA accrual for Colorado employees.
Colorado’s minimum wage is $14.42/hour (January 2024), rising with CPI annually. Denver has a higher local minimum: $18.29/hour (January 2024). Tipped employees: $11.40/hour state; $15.27/hour Denver. Rippling applies the correct state or Denver minimum based on employee work location.
