Colorado Paycheck Calculator
Use Colorado Paycheck Calculator to estimate net or “take home” pay for salaried employees. Simply input salary details, benefits and deductions, and any other necessary information as prompted below, and let our tool handle the rest.
Where are you employed?
How much do you get paid annual?
How often are you paid?
What is your federal filing status?
Children under 17 and students under 24
All other dependents
Where do you live?
Benefits and Deductions
Federal Income Tax
Alabama State Tax
What Are Payroll Taxes?
Payroll taxes withheld from employee paychecks fund Social Security and Medicare, to which the employer also makes payroll tax contributions.
The Social Security tax is paid by both the employee and the employer at a rate of 6.2% of the employee’s wages. The Medicare tax is also paid by both employee and employer, but at a rate of 1.45%.
Employers are also required to pay taxes under the Federal Unemployment Tax Act (FUTA) and the State Unemployment Tax Act (SUTA). The employer must also collect federal income tax from employee paychecks, and pay that amount to the IRS. The rate is determined by the employee’s tax bracket.
Each state also has specific state payroll taxes that must be withheld and paid.
Colorado Payroll Taxes
There are two Colorado employer payroll taxes to keep track of in addition to Social Security and Medicare.
Employers contribute to the state unemployment tax account, as per SUTA, while employees pay state income taxes.
Under SUTA, companies must allocate a portion of their payroll taxes for the state’s unemployment program, which pays out benefits to the unemployed until they find a new job or the predetermined benefit runs out.
The tax is paid on annual employee income up to $17,000 as of 2022. Rates vary based on industry and the difference between the amount of SUTA taxes paid and unemployment insurance paid from the employer’s account. Find rates information at the state’s Department of Labor and Employment.
State Income Tax
Paying Payroll Taxes
Just as you need an EIN to pay federal payroll taxes, in Colorado, you’ll need to register for state withholdings with the Department of Revenue. You’ll also need to register with the Department of Labor and Employment to pay SUTA taxes.
Your municipality may also require certain tax registrations, so check with your local government for requirements. In Colorado, the process for tax deposits and payroll taxes are as follows:
Login to your Department of Revenue account to pay your withheld taxes. You’ll be required to pay quarterly, monthly, or weekly, depending on the amount withheld.
To pay your SUTA taxes, log in to your Department of Labor account. Rates are determined based on specific employer information, and payments are due quarterly.
Again, be sure to check with your local government about possible local payroll taxes.
Using a Payroll Tax Service
In Colorado, payroll and payroll taxes come with countless laws and restrictions, which is why many business owners turn to a payroll service provider to ensure their business remains fully compliant. It’s usually less expensive than creating a new staff position for managing payroll, and relatively easy.
You’ll just send over your digital timesheets and relevant information and the service provider will take care of the calculations, payments and taxes, freeing you up to focus on growing your business.
We highly recommend hiring a payroll service — as a busy entrepreneur, you won’t regret it!