Payroll Colorado Unique Aspects of Colorado Payroll Law and Practice
Below is a MRR and PLR article in category Business -> subcategory Other.
Understanding Colorado Payroll: Key Aspects of Law and Practice
Overview
Managing payroll in Colorado involves understanding various unique aspects and regulations. This guide provides insights into tax withholding, unemployment insurance, wage and hour laws, and child support withholding in Colorado.
State Income Tax Withholding
The Colorado Department of Revenue is responsible for overseeing the collection and reporting of state income taxes. Employers can use the Federal W-4 form to determine state tax withholding. Notably, salary reductions under Section 125 cafeteria plans are not taxable for income tax purposes in Colorado, but 401(k) contributions are taxable for unemployment purposes. Supplemental wages are taxed at a flat rate of 4.63%.
Contact Information:
- Address: 1375 Sherman St., Denver, CO 80261-0009- Phone: 800-332-2087
- Website: [Colorado Department of Revenue](http://www.revenue.state.co.us/)
Unemployment Insurance
The Colorado Department of Labor & Employment manages unemployment insurance. The taxable wage base is wages up to $10,000. Employers must maintain unemployment records for at least five years, including details such as employee names, social security numbers, and wages.
Contact Information:
- Address: 1515 Arapahoe St., Tower 2, Ste. 400, Denver, CO 80202-2117- Phone: 303-603-8254
- Website: [Colorado Unemployment Tax](http://unemploytax.cdle.state.co.us/)
Wage and Hour Laws
The Colorado Labor Standards Office enforces wage and hour laws. The minimum wage is $6.15 per hour, and overtime pay is 1.5 times the regular rate after 12 hours a day or 40 hours a week. Employers must report new hires within 20 days, and late reporting has no penalties.
Contact Information:
- Address: 1515 Arapahoe St., Ste. 375, Denver, CO 80202-2117- Phone: 303-318-8441
- Website: [Labor Standards Office](http://www.coworkforce.com/LAB/)
Payroll Documentation Requirements
Employees must receive pay stubs that include gross and net earnings, deductions, pay period dates, employee name or social security number, and employer details. Employers must pay salaries monthly or every 30 days and must pay terminated employees promptly.
Child Support Withholding
The Division of Child Support Enforcement handles child support orders. Withholding must start within 14 days of receiving an order, and payments must be sent within seven days of payday.
Contact Information:
- Address: 1575 Sherman St., 2nd Fl., Denver, CO 80203-1714- Phone: 303-866-5994
- Website: [Child Support Enforcement](http://www.childsupport.state.co.us/)
Additional Considerations
- Direct Deposit: Employers cannot mandate direct deposit.
- Rest Breaks: A 30-minute meal break is required after five hours of work, with a 10-minute rest after four hours.
- Record Retention: Wage and hour records must be retained for a minimum of two years.
- Unclaimed Wages: Wages unclaimed after one year must be turned over to the state.
This guide provides a comprehensive look at Colorado payroll laws, but regulations can change, so always ensure you stay updated with the latest information.
You can find the original non-AI version of this article here: Payroll Colorado Unique Aspects of Colorado Payroll Law and Practice.
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