Cost to hire an employee in Colorado
On top of a $50,000 salary, a Colorado employer pays roughly $5,545 in payroll taxes and insurance before benefits, about 11.1% of wages.
Last verified November 2, 2026. Sources: news.bloombergtax.com, taxnews.ey.com, content.govdelivery.com, oregon.gov.
What a Colorado employer pays
| Cost | Rate | Applies to |
|---|---|---|
| Social Security | 6.2% | Wages up to $184,500 |
| Medicare | 1.45% | All wages |
| Federal unemployment (FUTA) | 0.6% net | First $7,000 |
| Colorado unemployment (SUTA) | 3.05% new employer 0.72%–10.85% experienced | First $30,600 |
| Paid Family and Medical Leave Insurance (FAMLI) | 0.44% | Wages up to $184,500 |
| Workers' compensation | ~$1.05 per $100 | Varies by job class |
Support surcharge and solvency surcharge are included in the rates. FAMLI paid-leave premium is 0.88% split 50/50 (employer share applies with 10+ employees).
Total cost at different salaries
| Salary | Employer taxes & insurance | % of salary | Total cost |
|---|---|---|---|
| $35,000 | $4,174 | 11.9% | $39,174 |
| $50,000 | $5,545 | 11.1% | $55,545 |
| $75,000 | $7,830 | 10.4% | $82,830 |
| $100,000 | $10,115 | 10.1% | $110,115 |
| $150,000 | $14,685 | 9.8% | $164,685 |
Benefits usually cost more than taxes. The BLS Employer Costs for Employee Compensation survey puts benefits at roughly 30% of total compensation in private industry. Add your health plan cost in the calculator to include it.
Colorado vs. neighboring states
| State | SUTA wage base | New-employer rate | Cost on $50,000 |
|---|---|---|---|
| Colorado | $30,600 | 3.05% | $5,545 |
| Arizona | $8,000 | 2% | $4,377 |
| Kansas | $15,100 | 1.75% | $4,586 |
| Nebraska | $9,000 | 1.25% | $4,540 |
| New Mexico | $34,800 | 1% | $4,740 |
| Oklahoma | $25,000 | 1.5% | $4,907 |
| Utah | $50,700 | 1.2% | $4,782 |
| Wyoming | $33,800 | 1.69% | $5,143 |
Frequently asked questions
- How much does it cost to hire an employee in Colorado?
- On a $50,000 salary, employer payroll taxes and insurance add about $5,545 (11.1%), before benefits, for a total of $55,545.
- What is the Colorado SUTA rate for new employers?
- New employers generally pay 3.05% on the first $30,600 of each employee's wages. Experienced employers pay between 0.72% and 10.85%.
- Do Colorado employers pay FUTA?
- Yes. Employers pay 6.0% on the first $7,000 of wages, reduced to 0.6% with the state unemployment credit.