Overview

Capital
Denver
Currency
United States Dollar (USD)
Date Format
mm/dd/yyyy

Taxes

Employer
6.20% - Social Security Tax
1.45% - Medicare Rate
Up To 5% - State Taxes
Employee

Minimum Wage

General

Minimum wage is $9.30 per hour.

Payroll Contributions

Social Security

Employer: 6.2%

Pension Fund

Employer:contributes a percentage of the total payroll per month for the employees pension funds. The contribution percentage is not specified.
Employee: contributes 8% of the monthly salary to pension fund. Contribution limit of $18,000.

Health Insurance

Federal:

Employer: Medicare - 1.45%

Employee: Medicare - 1.45% (additional 0.9% contribution for employees earning less than $200,000)

Unemployment Insurance

Federal

Employer: 6.0% and maximum taxable earnings are $7,000


State:

Employer: 2.7%

Employee: Voluntary contributions permitted.

Leave

Public Holidays

There are 11 official holidays, however private employers are not required to provide either time off or overtime pay on these days.

Termination

Termination Process

Colorado follows “employment at will” doctrine which means both the employee and employer are allowed to terminate the employment at any given time without a reason. Therefore at the time of termination, the employer must pay all the necessary wages up to the day of termination.

VAT

General

The state sales tax is 2.9%.