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Cost of hiring an employee in Colorado

A full-time hire at $18/hour costs about $41,673 a year before benefits — $20.84 per hour actually worked with 10 days off.

Last updated October 28, 2026 · 2026 rates

SUTA new-employer rate
3.05%
incl. surcharges
SUTA wage base
$30,600
verified
Minimum wage
$15.16
verified
Workers' comp (typical)
$1.05/$100
rank 28/51 (1 = priciest)

DOL base 1.53%; 3.05% total incl. surcharges (secondary).

Minimum wage: Denver and some cities set higher local minimums.

1About the hire

Adjust tax rates (from your notices or quotes)

2What this employee costs you

Frequently asked questions

How much does it cost to hire an employee in Colorado?

A full-time worker at $18.00/hour ($37,440 a year) with 10 PTO days costs about $41,673 a year before benefits: employer payroll tax $2,864, FUTA $42, Colorado unemployment $933 and typical workers' comp $393. That's $20.84 per hour worked.

What is the Colorado SUTA rate for new employers in 2026?

3.05% on the first $30,600 of each employee's wages (includes state surcharges per a secondary source; base rate per DOL 1.53%). DOL base 1.53%; 3.05% total incl. surcharges (secondary).

What is the Colorado minimum wage in 2026?

$15.16 per hour. Denver and some cities set higher local minimums.

How much is workers' comp in Colorado?

The 2024 Oregon premium-rate study puts Colorado's all-industry index rate at $1.05 per $100 of payroll (rank 28 of 51; national median $1.09). Your real rate depends on job class and claims history.

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