Payroll Colorado, Unique Aspects of Colorado Payroll Law and Practice

The Colorado State Agency that oversees thereached at 303-297-2849 or on the web at .
collection and reporting of State income taxesColorado does not allow compulsory direct deposit
deducted from payroll checks is:Colorado requires the following information on an
Department of Revenueemployee's pay stub:
State Capital AnnexGross and Net Earnings
1375 Sherman St.Deductions
Denver, CO 80261-0009Pay period dates
800-332-2087www revenue.state.co.us/Employee's name or social security number
Colorado allows you to use the Federal W-4 form toEmployer's name and address
calculate state income tax withholdingColorado requires that employees be paid monthly or
Not all states allow salary reductions made underevery 30 days which ever is longer.
Section 125 cafeteria plans or 401(k) to be treated inIn Colorado requires that employees be paid no more
the same manner as the IRS code allows. In Coloradothan 10 days after the end of the pay period.
cafeteria plans are: not taxable for income taxColorado payroll law requires that involuntarily
calculation; not taxable for unemployment insuranceterminated employees must be paid their final pay
purposes. 401(k) plan deferrals are: not taxable forimmediately or within 6 hours of the payroll department
income taxes; taxable for unemployment purposes.becoming operational; next day if payroll is offsite. (By
In Colorado supplemental wages are taxed at a 4.63%mail upon request) Voluntarily terminated employees
flat rate.must be paid their final pay by the next regular payday.
You must file your Colorado State W-2s by magneticDeceased employee's wages must be paid to the
media if you are required to file your federal W-2s bysurviving spouse or next legal heir; personal
magnetic media.representative if already appointed. After an affidavit
The Colorado State Unemployment Insurance Agencyshowing claimant's relationship to the deceased is
is:presented.
Department of Labor & EmploymentEscheat laws in Colorado require that unclaimed
Division of Employment and Trainingwages be paid over to the state after one year.
1515 Arapahoe St., Tower 2, Ste. 400The employer is further required in Colorado to keep a
Denver, CO 80202-2117record of the wages abandoned and turned over to
303-603-8254the state for a period of five years.
The State of Colorado taxable wage base forColorado law concerning tip credits against State
unemployment purposes is wages up to $10,000.00.minimum wage allows a maximum credit of $3.02 per
Colorado has optional reporting of quarterly wages onhour.
magnetic media.In Colorado the payroll laws covering mandatory rest
Unemployment records must be retained in Coloradoor meal breaks are a 30-minute meal break after five
for a minimum period of five years. This informationhours and 10 minutes of rest after four hours.
generally includes: name; social security number; datesColorado law concerning record retention of wage
of hire, rehire and termination; wages by period; payrolland hour records requires a minimum of two years
pay periods and pay dates; date and circumstances ofretention.
termination.The Colorado agency charged with enforcing Child
The Colorado State Agency charged with enforcingSupport Orders and laws is:
the state wage and hour laws is:Division of Child Support Enforcement
Department of Labor & Employment1575 Sherman St., 2nd Fl.
Labor Standards OfficeDenver, CO 80203-1714
1515 Arapahoe St., Ste. 375303-866-5994
Denver, CO 80202-2117Colorado has the following provisions for child support
303-318-8441deductions:
The minimum wage in Colorado is $5.15 per hour.When to start Withholding? Within 14 days after
The general provision in Colorado State Law coveringreceipt of order.
paying overtime is one and one half times regular rateWhen to send Payment? Within 7 days of Payday.
after 12 hour day or 40 hour week.When to send Termination Notice? Within 10 days of
Colorado State new hire reporting requirements aretermination.
that every employer must report every new hire orMaximum Administrative Fee? $5 per month.
rehire. The employer must report the federally requiredWithholding Limits? Federal Rules under CCPA.
elements of:Please note that this article is not updated for changes
Employee's namethat can and will happen from time to time.
Employee's addressCharles J. Read, CPA has been in the payroll,
Employee's social security numbeaccounting and tax business for 30 years, the last
Employer's namefifteen in private practice.
Employers addressMr. Read is the author of How to Start a New
Employer's Federal Employer Identification NumberBusiness.
(EIN)To find professional payroll service at a budget price
This information must be reported within 20 days ofgo to a paperless payroll company.
the hiring or rehiring or first payroll after hire.For a full service payroll bureau with CPAs on staff
The information can be sent as a W4 or equivalent byvisit .
mail, fax or electronically.See an excerpt of Mr. Reads interviews from William
There is no penalty for a late report in Colorado.Shatners Heartbeat of America television show on the
The Colorado new hire reporting agency can beweb sites linked above.