How do I register as a household employer in Colorado?

Start with a federal EIN, then register with Colorado for each account that applies to you. Apply for a federal EIN at IRS.gov. It is free and takes about 15 minutes. Register with Colorado's unemployment insurance agency once you cross $1,000 in any calendar quarter. Most states want this within 20 days of becoming a covered employer. If you will withhold Colorado income tax at your nanny's request, register separately with the state revenue department for a withholding account. Register for Colorado Family and Medical Leave Insurance (FAMLI), usually a separate account from unemployment insurance.

What payroll taxes does Colorado charge for a household employee?

Federal FICA and FUTA, Colorado SUTA, and anything else below that applies to you. Federal FICA: 7.65% employer share, matched by your nanny. Federal FUTA: 6.0% on the first $7,000, an effective 0.6% after the state SUTA credit. Colorado SUTA: 0% - 11.01% on a state-specific wage base, with a separate rate for new employers. State income tax withholding is optional unless your nanny elects it on the state W-4. Plus Colorado Family and Medical Leave Insurance (FAMLI) contributions, usually a small percentage of wages and mostly employee-funded.

What are Colorado's minimum wage and overtime rules for nannies?

At least $15.16 an hour for a nanny in Colorado. That is Colorado's own minimum wage, above the federal $7.25 floor. Some cities and counties may set a higher floor, so check your locality before you set a rate. Overtime is 1.5x pay for hours over 40 in a week, under the FLSA. Live-in nannies are exempt from FLSA overtime, but not from minimum wage. Source: US DOL, State Minimum Wage Laws.

Can I require my nanny to use direct deposit in Colorado?

No. Colorado does not let an employer require direct deposit, so your nanny has to opt in. Get a written, signed authorization anyway. Federal Regulation E sets the floor, and Colorado adds an employee-consent rule on top.

What records do I need to keep for a Colorado household employee?

Keep them for at least 4 years after the return reporting the tax was due, or the tax was paid, whichever is later. Timesheets, pay stubs, W-2 copies, payment confirmations and SUTA filings. Colorado follows the federal baseline, so 4 years covers both. Most household-employer audits open with the IRS or a state agency asking for exactly these records, so keep them with your tax filings. Source: IRS Publication 926.

All State Guides

Colorado Nanny Tax Guide

Colorado has a flat income tax rate and an active Paid Family and Medical Leave Insurance (FAMLI) program. If your employee works in Denver, a small monthly local tax comes out of their pay too, and we handle that withholding for you.

Colorado household employer quick facts

Applies in Colorado

State income tax withholding
State unemployment
Paid family leave

Not in Colorado

Disability insurance

Minimum Wage

$15.16/hour

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SUTA Rate Range

0% - 11.01%

New employers: 3.05% (UI + Support & Solvency) on the first $30,600 (2026). Colorado Department of Labor and Employment

Key things to know

Flat state income tax of 4.4%
Paid Family and Medical Leave (FAMLI) program active
State minimum wage is $15.16/hour
Denver: we withhold the $5.75 head tax in the months it is owed

Colorado Employer Requirements

State Income Tax

Colorado uses a flat 4.4% income tax rate. This makes calculating withholding straightforward compared to states with progressive brackets.

FAMLI (Paid Family Leave)

Colorado's FAMLI program requires household employers to withhold and remit 0.44% of wages from the employee. Household employers with nine or fewer employees do not owe an employer share. Benefits provide up to 12 weeks of paid leave.

State Unemployment Insurance

Employers pay SUI tax on the first $30,600 of wages. The new-employer rate is about 3.05% (the 1.72% base plus Colorado's support and solvency surcharges), with rates ranging from 0.0% to 11.01% based on experience.

Local Taxes (Denver)

If your employee works in Denver, the city charges a small head tax called the Occupational Privilege Tax. We withhold it in the months it is owed; you register with Denver once and file with Denver, quarterly for most households.

Amount: $5.75 per employee per month, never $9.75. Households do not owe the $4.00 business share, because a home is not a business operating in the city.
Owed when: Only in a calendar month where your employee earns at least $500 for work in Denver.
NannyKeeper: Already takes the $5.75 out of your employee's pay in each month it is owed, so do not deduct it a second time.
You, once: Register with Denver for an OPT account. It is free.
You, quarterly: File and pay Denver what we withheld. Denver assigns the frequency; households qualify for quarterly.

Colorado household employer questions

What will it cost?

Wondering what you'll actually owe as a Colorado employer? Adjust the numbers below to get a quick estimate of your annual tax obligations.

This guide is for informational purposes only and should not be considered legal or tax advice. Tax laws change frequently. Always verify current requirements with your state's tax agency or consult with a qualified tax professional.

Verified accurate as of June 2026Sources: Colorado tax agency, IRS Publication 926

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Colorado Nanny Tax Guide

Colorado household employer quick facts

Colorado Employer Requirements

State Income Tax

FAMLI (Paid Family Leave)

State Unemployment Insurance

Local Taxes (Denver)

Colorado household employer questions

What will it cost?

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