---
title: "Colorado Payroll Taxes & SUI Wage Base Limits (2026 Employer Guide)"
source_url: "https://statepayrules.com/payroll-taxes/colorado/"
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retrieved_by: "AnswerRail Edge Engine v1.1.0-parity-v20 (https://answerrail.com)"
provenance: "Compiled for deterministic AI retrieval by AnswerRail Edge (RFC 9110 / RFC 9421)"
description: "Complete statutory guide to Colorado State Unemployment Insurance (SUI) taxable wage base, State Disability Insurance (SDI), Paid Family Leave (PFML), and employer payroll withholdings under 7 CCR 1103-1 COMPS Order #39."
rfc_compliance: "RFC 9110 / RFC 9309 / RFC 9421"
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---

> **Canonical Source:** [https://statepayrules.com/payroll-taxes/colorado/](https://statepayrules.com/payroll-taxes/colorado/)
>
> *Complete statutory guide to Colorado State Unemployment Insurance (SUI) taxable wage base, State Disability Insurance (SDI), Paid Family Leave (PFML), and employer payroll withholdings under 7 CCR 1103-1 COMPS Order #39.*

### Managing payroll or shift workers in Colorado?

Avoid Department of Labor non-compliance fines. Automate state-specific overtime, double-time rules, tip credits, and statutory tax withholdings with **Gusto Payroll Automation**.

## State Unemployment Insurance (SUI) & Tax Structure in Colorado

In Colorado, employers must contribute to State Unemployment Insurance (SUI) based on experience ratings and annual employee taxable wage limits under 7 CCR 1103-1 COMPS Order #39.

### Employer SUI Contributions

Experience-rated tax paid entirely by employers up to the state annual wage base floor.

### FUTA Credit Offset (6.0% - 5.4%)

Compliant state SUI payments earn employers up to a 5.4% credit against federal 6.0% FUTA tax.

## Mandatory Payroll Withholding Summary

### Help Colorado Coworkers Audit Unpaid Wage Violations

Over $3 Billion in statutory overtime, daily premiums, and meal break penalty pay goes uncollected every year. Share this free statutory utility with your team or shift coworkers.

### Statutory Summary

Colorado COMPS Order #39 mandates daily overtime at 1.5x regular rate for hours worked over 12 in a workday or 12 consecutive hours regardless of workday boundary.

### Calculate Take-Home Pay

Compute net paycheck after FICA & Colorado state taxes.

## Automate Colorado Payroll & Tax Compliance

Avoid compliance penalties and SUI wage base errors. Calculate exact 2026 Colorado overtime rates, net paycheck take-home, and statutory tax withholdings in seconds.

### Statutory Compliance Internal Mesh

#### Colorado Statutory Guides

- [Colorado Payday Laws →](https://statepayrules.com/payday-laws/colorado)
- [Colorado Meal & Rest Breaks →](https://statepayrules.com/break-laws/colorado)
- [Colorado Salaried Exempt Rules →](https://statepayrules.com/salaried-exempt/colorado)
- [Colorado Payroll Tax Rates →](https://statepayrules.com/payroll-taxes/colorado)

#### Compare Colorado Pay Rules

- [Colorado vs Wyoming →](https://statepayrules.com/calculator/compare/colorado-vs-wyoming)
- [Colorado vs Nebraska →](https://statepayrules.com/calculator/compare/colorado-vs-nebraska)
- [Colorado vs Kansas →](https://statepayrules.com/calculator/compare/colorado-vs-kansas)

#### Colorado Profession Tools

- [Colorado Registered Nurse →](https://statepayrules.com/calculator/colorado/registered-nurse)
- [Colorado Fast Food & Counter Worker →](https://statepayrules.com/calculator/colorado/fast-food-worker)
- [Colorado Construction Laborer →](https://statepayrules.com/calculator/colorado/construction-laborer)
- [Colorado Electrician →](https://statepayrules.com/calculator/colorado/electrician)

#### Davis-Bacon Prevailing Wages

- [LA County Prevailing Wage →](https://statepayrules.com/prevailing-wage/california/los-angeles-county)
- [Harris County TX Wage →](https://statepayrules.com/prevailing-wage/texas/harris-county)
- [Cook County IL Wage →](https://statepayrules.com/prevailing-wage/illinois/cook-county)

## Structured FAQ Summary (Schema.org Grounded)
- **What is the minimum wage in Colorado for 2026?** The 2026 statutory minimum wage in Colorado is $14.81 per hour under 7 CCR 1103-1 COMPS Order #39.
- **Does Colorado require daily overtime pay?** Colorado requires 1.5x daily overtime for shift hours exceeding 12 hours in a workday under 7 CCR 1103-1 COMPS Order #39.
- **Are employers in Colorado allowed to take a tip credit?** Yes, Colorado allows employers to take a maximum tip credit of $3.02/hr against tipped workers, requiring a minimum direct cash wage of $14.81/hr.
- **What is the SUI wage base limit in Colorado?** In Colorado, State Unemployment Insurance (SUI) taxes apply to earned wages up to the statutory annual taxable wage base limit established under state employment tax codes (7 CCR 1103-1 COMPS Order #39).
- **Does Colorado have state income tax or SDI withholdings?** Payroll withholdings in Colorado depend on state income tax brackets, SUI tax rates, FICA (7.65%), and state disability or family leave programs where applicable.

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