Payroll Services in Colorado

Struggling to keep up with payroll and HR in Colorado? From local ordinances to statewide labor laws, we’ll help you save time and focus on growing your business.

How Paylocity Helps Colorado Employers

Payroll That Gets It Done

Seamless Automation: Eliminate repetitive tasks with automated workflows that boost accuracy and save time.
Smart Safeguards: Built-in audits and integrations flag issues before they become errors.
Transparent Calculations: Easily manage overtime, bonuses, and local tax changes, even across overlapping jurisdictions.

Make Payroll Easy

Your Extra HR Team Member

Automated Workflows: Use ready-made templates for common tasks or build custom processes that fit your business.
One Employee Record: A single source of truth for employee data keeps everything organized and compliant.
Time & Labor Made Simple: Schedule quickly, track clock-ins and meal breaks, and standardize time-off requests.

Optimize HR Efficiency

Compliance Made Simple

Compliance Dashboard: Get a clear view of requirements with updated forms and expert HR support.
Built-In Data Access: Quickly find work authorizations, EEO/FLSA data, pay records, certifications, and industry updates.
Always Up-to-Date Forms: Access the latest state and federal forms right from the platform.

Streamline Compliance Tasks

Challenges Facing Employers in Colorado

Colorado maintains a complex compliance landscape that requires a careful balance between federal standards and state mandates.

As an employer, you must grapple with:

Stricter employment regulations ranging from pay transparency to paid voting leave.
Higher state and local minimum wage requirements.
Additional benefits mandates under the state’s retirement savings program.

Colorado Payroll Fast Facts

Minimum Wage

$14.81

State Income Tax Rate

4.40%

Right to Work Laws

None

State Unemployment Tax Rate

3.05% (new employers)
0.81% - 12.34% (experienced employers)

Last Updated: December 2025

Colorado Tax and Compliance Resources

Colorado Payroll Tax Compliance

Explore Colorado-specific payroll tax facts with current rates, filing deadlines, and agency links and resources. Stay ahead of changing regulations with reliable, up-to-date information.

Colorado Tax Facts

Colorado Employment and Labor Laws

Discover Colorado-specific employment and labor laws with details on wages, paid leave, overtime rules, and more. Enhance your workforce policies and management with these updated insights.

Colorado Employment Laws

FAQs About Paying Employees in Colorado

Does Colorado have income tax?

Yes, Colorado state income tax uses a flat rate of 4.40%, meaning it applies to all taxpayers regardless of their income levels.

Is Colorado a Right to Work State?

No, Colorado is not a right to work state, but it can pass right to work laws in the future if it wishes to do so.

What are the Colorado final pay laws?

Under the Colorado Wage Act, employees who voluntarily resign must receive their final paycheck by the next regular payday. Involuntarily terminated employees must receive their final paycheck immediately, unless the payroll department isn’t operational at the time of separation.

Are there Colorado work break laws?

Yes, under state law employers must provide employees with a 10-minute paid rest period for every four hours worked and a 30-minute uninterrupted meal period when an employee works over five hours in a shift.