Free Colorado Payroll Tax Calculator and CO Tax Rates

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    Pay Details

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    Exemptions

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    Federal Information

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    State Information

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    Locale Information

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    Voluntary Deductions

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    Calculate Paycheck

Welcome to our payroll calculator!

Before we jump in, who are you using this calculator for?

Thanks!

Our calculators are designed for employers, and they’ll ask for information you may not have. For a better experience, please check out this employee-focused paycheck calculator.

How much did your employee earn?

Gross Pay: This is the total amount of wages your employee earned before taxes and deductions are withheld.


For salaried employees, gross pay equals their annual salary divided by the number of pay periods per year. For hourly employees, gross pay equals the number of hours worked multiplied by their hourly wage.


(Don’t forget to add on any tips, commissions, or bonuses!)

Gross Pay Method: Is the gross pay amount based on your employee’s annual compensation, or by how many hours they worked in the last pay period?

Gross Pay YTD: Enter the total gross pay your employee has earned this year, prior to this paycheck. Normally, this can be found on the last pay stub.

Pay Frequency: How often do you normally issue paychecks?

Check Date: Enter the check date that should appear on your paycheck.

Is your employee exempt from any taxes?

Federal: In some cases, public and governmental employees are exempt from federal taxes. Check “yes” if your employee is exempt and Federal taxes should not be deducted.

FICA: In some cases, public and governmental employees are exempt from FICA. Check “yes” if your employee is exempt and FICA taxes should not be deducted.

Medicare: In some cases, public and governmental employees are exempt from Medicare taxes. Check “yes” if your employee is exempt and Medicare taxes should not be deducted.

Please enter your employee’s withholding information.

2020 W4: Would you like to use the 2020 withholding tables? Here’s an article that covers the 2020 W-4 updates if you aren’t sure.

Federal Filing Status: Select your employee’s filing status for federal withholding. This helps determine how much federal tax will be withheld.

Two Jobs: If the employee indicated that they have more than one job or are married and filing jointly with a working spouse, select Yes here.

Dependents Amount: Enter the amount your employee listed on Line 3 of their W-4, if any. This is where they claim dependents.

Other Income: If your employee listed another other income on line 4(a) of their W-4, enter the amount here.

Deductions: Enter any deductions that your employee listed on line 4(b) of their W-4, if applicable.

Additional Federal Withholding: If your employee has asked to have additional funds withheld from each paycheck, enter the amount here. If they have not, enter “0”.

Round Federal Withholding: Would you like us to round your employee’s withholding totals to the nearest dollar? (It’s not required, but it is permitted)

Now, add information for their state.

State: Select the state where withholding should be calculated. It should be the same state where the work was performed.

Now, add locale information if applicable.

Does your employee have any voluntary deductions?

Please add any additional deductions for items like health insurance, 401(k), HSAs/FSAs, or any other benefits.


Select type of deduction needed:

401(k)

Add deduction

HSA

Add deduction

Custom

Add deduction

Let’s finish crunching the numbers!

Click the button below to see your paycheck calculated.

Here’s your paycheck information:

Leave payroll to us.

We do all the hard work to set you up for just $40 + $6 per employee.

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Updated: May 19, 2023

Rock climbing, skiing, snowboarding, whitewater rafting, hiking, kayaking…you name it, Colorado has it. It’s a state filled with adventures, and running your own small business is no exception. But sometimes, administrative tasks like calculating payroll taxes can make it seem like anything but an adventure.

 

Luckily, our payroll tax calculator can do all the heavy lifting so you can get back to doing what you do best. Grab your employees’ W-4 and wage information, enter them into the calculator, and boom! Each employee’s gross pay, deductions, and net pay for both Federal and Colorado state taxes will be calculated for you.

Federal payroll taxes for Colorado employers

First and foremost, you have to give Uncle Sam his due. Luckily, we’ve already been there and done that, so we know just what to do. Here’s what you need to know:

 

Start with your employees’ gross wages, regardless of whether they are paid on salary or hourly. Don’t forget to add in commissions, bonuses, and tips into gross wages as well. This is your starting point.

 

Then, apply any and all payroll tax withholdings. These are benefits like a 401(k) or a Flexible Spending Account that allows your employees to reduce their taxable income.

 

Easy enough. But alas, there’s more.

 

The federal income tax is the biggest tax of them all. The IRS taxes anywhere from 0% to 37% of gross wages. We won’t get stuck in the details here, but you can find more in-depth withholding information through the IRS.

 

Double trouble when it comes to FICA taxes. That’s because you have two taxes to worry about: First up is Social Security Tax, which is 6.2% of each employee’s taxable wages until they reach an annual earning of $160,200. Then there’s Medicare Tax, which is 1.45% of each employee’s taxable wages until they have reached an annual earning of $200,000. As the employer, you are responsible for matching both FICA taxes dollar-for-dollar.

 

As the late-night infomercial would say…that’s not all! Although employees who earn more than $160,200 don’t have to pay Social Security Tax above this amount, the opposite is true for Medicare Tax. High wage earners above $200,000 have to pay what’s called the Additional Medicare Tax. This additional tax is 0.9% on top of the 1.45% that they are already paying. Thus, gross wages above $200,000 are taxed at 2.35% with no wage limit.

 

Fortunately for you, employers are not responsible for paying the 0.9% Additional Medicare Tax. Only employees have to pay.

 

However, only employers are responsible for paying FUTA taxes, more casually known as the federal unemployment tax. As an employer, you’re paying 6% of the first $7,000 of each employee’s taxable income. Your employees get to sit this one out, so don’t withhold FUTA from their paychecks.

 

The good news is that if you pay your state unemployment taxes in full and on time each quarter, you can claim a tax credit of up to 5.4%. It’s worth your time and money to check out this video, especially since you’ll be getting a whopping 90% discount on your FUTA tax liability.

 

Finally, you might need to deduct post-tax withholdings. Not every employee will have post-tax withholdings, things like court-ordered wage garnishments and child support. But for the ones that do, you’ll need to deduct these items from their net pay.

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Colorado Payroll Taxes for 2023

Now that we’re done with federal taxes, let’s talk about Colorado state taxes, shall we?

 

Colorado is the highest state in America, towering over the rest at an average of 6,800 feet above sea level. Luckily, the Colorado state income tax rate isn’t quite as high. In fact, the flat tax rate of 4.55% more closely resembles the Grand Mesa, the world’s largest flat-top mountain.

 

However, employees working in Aurora, Denver, Glendale, Sheridan, or Greenwood Village must take into account what’s called the Occupational Privilege Tax into consideration.

Colorado State Unemployment Insurance (SUI)

Employers fund unemployment benefits. Some employers are required to pay additional premiums on top of unemployment insurance. This employer liability chart can help you determine what you owe if you owe anything at all.

 

Colorado Unemployment Insurance is complex. It changes on a yearly basis and is dependent on many things, including wage and industry. And if you’re in the construction business, unemployment taxes are especially complicated. If you are in a construction-related industry, the Colorado UI office recommends you get in touch with their office for assistance. Here are the phone numbers they provide:

 

303-318-9100 (Denver-metro area)

1-800-480-8299 (outside Denver-metro area)

 

For 2023, the Unemployment Insurance tax range is from 0.75% to 10.39%, with new employers in Colorado generally starting at 1.7%.

 

Cut Those Checks!

You’re on your way to becoming as unique as a Colorado landmark. Once you’ve calculated each employee’s net pay, you’ll be ready to spread the wealth. Just make sure you don’t forget to set aside any FICA and UI contributions your business is responsible for paying, or else you will have a big tax surprise when year-end rolls around.

 

Federal tax filings are due quarterly by filing Form 941 and annually by filing Form 940, but for most Colorado employers, taxes must be paid on an ongoing basis via the EFTPS payment system. You can find detailed information from the IRS here.

More Colorado Payroll Tax Resources

Here are some more helpful links so you can learn even more about paying taxes for your small business, including quarterly due dates and the IRS forms you have to send in.

 

Forms & Publications ︳Colorado Department of Labor and Employment

 

Online Federal Tax Payments ︳Electronic Federal Tax Payment System

 

Employment Tax Due Dates  ︳Internal Revenue Service

More helpful payroll calculators for Colorado employers

With the calculator at the top of this page, Colorado employers can confidently calculate employees’ gross and net pay, as well as deductions. But every so often, employers run into situations that require a bit more wrangling. For example, do your best-performing employees occasionally get bonuses? Keep Uncle Sam in mind because he considers this type of payment to be supplemental wages and requires taxes to be withheld. Also, if you have workers who come and go, there may be times when you need to figure out what their final paycheck will be. So, if you need a little more help with the math, check out some of the calculators listed below.

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