Payroll Colorado - Unique Aspects of Colorado Payroll Law and Practice

The Colorado State Agency that oversees theColorado new hire reporting agency can be reached
collection and reporting of State income taxesat 303-297-2849 or on the web at .Colorado does not
deducted from payroll checks is:Department ofallow compulsory direct depositColorado requires the
Revenuefollowing information on an employee's pay stub:
State Capital AnnexGross and Net Earnings
1375 Sherman St.Deductions
Denver, CO 80261-0009Pay period dates
800-332-2087Employee's name or social security number
www revenue.state.co.us/Colorado allows you to useEmployer's name and addressColorado requires that
the Federal W-4 form to calculate state income taxemployees be paid monthly or every 30 days which
withholdingNot all states allow salary reductions madeever is longer.In Colorado requires that employees be
under Section 125 cafeteria plans or 401(k) to bepaid no more than 10 days after the end of the pay
treated in the same manner as the IRS code allows. Inperiod.Colorado payroll law requires that involuntarily
Colorado cafeteria plans are: not taxable for incometerminated employees must be paid their final pay
tax calculation; not taxable for unemploymentimmediately or within 6 hours of the payroll department
insurance purposes. 401(k) plan deferrals are: notbecoming operational; next day if payroll is offsite. (By
taxable for income taxes; taxable for unemploymentmail upon request) Voluntarily terminated employees
purposes.In Colorado supplemental wages are taxedmust be paid their final pay by the next regular
at a 4.63% flat rate.You must file your Colorado Statepayday.Deceased employee's wages must be paid to
W-2s by magnetic media if you are required to filethe surviving spouse or next legal heir; personal
your federal W-2s by magnetic media.The Coloradorepresentative if already appointed. After an affidavit
State Unemployment Insurance Agency is:Departmentshowing claimant's relationship to the deceased is
of Labor & Employmentpresented.Escheat laws in Colorado require that
Division of Employment and Trainingunclaimed wages be paid over to the state after one
1515 Arapahoe St., Tower 2, Ste. 400year.The employer is further required in Colorado to
Denver, CO 80202-2117keep a record of the wages abandoned and turned
303-603-8254over to the state for a period of five years.Colorado
State of Colorado taxable wage base forlaw concerning tip credits against State minimum wage
unemployment purposes is wages up toallows a maximum credit of $3.02 per hour..In Colorado
$10,000.00.Colorado has optional reporting of quarterlythe payroll laws covering mandatory rest or meal
wages on magnetic media..Unemployment recordsbreaks are a 30 minute meal break after five hours
must be retained in Colorado for a minimum period ofand 10 minutes of rest after four hours.Colorado law
five years. This information generally includes: name;concerning record retention of wage and hour records
social security number; dates of hire, rehire andrequires a minimun of two years retention.The
termination; wages by period; payroll pay periods andColorado agency charged with enforcing Child Support
pay dates; date and circumstances of termination.TheOrders and laws is:Division of Child Support
Colorado State Agency charged with enforcing theEnforcement
state wage and hour laws is:Department of Labor &1575 Sherman St., 2nd Fl.
EmploymentDenver, CO 80203-1714
Labor Standards Office303-866-5994
1515 Arapahoe St., Ste. 375has the following provisions for child support
Denver, CO 80202-2117deductions:When to start Withholding? Within 14 days
303-318-8441after receipt of order.
minimum wage in Colorado is $6.15 per hour.TheWhen to send Payment? Within 7 days of Payday.
general provision in Colorado State Law coveringWhen to send Termination Notice? Within 10 days of
paying overtime is one and one half times regular ratetermination.
after 12 hour day or 40 hour week.Colorado StateMaximum Administrative Fee? $5 per month.
new hire reporting requirements are that everyWithholding Limits? Federal Rules under CCPA.
employer must report every new hireor rehire. ThePlease note that this article is not updated for
employer must report the federally required elementschanges that can and will happen from time to
of:Employee's nametime.Charles J. Read, CPA has been in the payroll,
Employee's addressaccounting and tax business for 30 years, the last
Employee's social security numberfifteen in private practice. Mr. Read is the author of
Employer's name"How to Start a New Business".For Professional
Employers addressPayroll services at a Budget Price go to a Paperless
Employer's Federal Employer Identification NumberPayroll Company.Go to for a full service payroll service
(EIN) This information must be reported within 20 daysbureau with CPA's on staff.See an excerpt of Mr.
of the hiring or rehiring or first payroll after hire.TheRead's interviews from William Shatners "Heartbeat of
information can be sent as a W4 or equivalent by mail,America" television show on the websites linked
fax or electronically.above.
There is no penalty for a late report in Colorado.The