How do I register as a household employer in Colorado?

First, apply for a federal EIN at IRS.gov — free, takes about 15 minutes. Then register with Colorado's unemployment insurance agency once you cross $1,000 in any calendar quarter — most states require registration within 20 days of becoming a covered employer. If you'll withhold Colorado state income tax at your employee's request, register separately with the state department of revenue for a withholding account. Colorado household employers also 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: 7.65% FICA (employer share, matched by your employee), plus FUTA at 6.0% on the first $7,000 (effective 0.6% after the state SUTA credit). Colorado SUTA: 0% - 11.01% on a state-specific wage base — new employers typically land near the middle of that range. 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 — typically a small percentage of wages, mostly employee-funded.

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

Colorado's minimum wage is $15.16/hour, above the federal $7.25 floor. Household employees must be paid at least this rate. FLSA overtime (1.5x for hours over 40 in a week) applies to most household employees. Live-in nannies are FLSA-exempt from overtime but not from minimum wage.

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

No. Colorado prohibits employers from mandating direct deposit — your nanny must opt in voluntarily. Best practice is to get a written, signed authorization regardless. Federal Regulation E (Electronic Fund Transfer Act) sets the floor; Colorado layers an additional employee-consent rule on top.

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

IRS Publication 926 requires household employers to keep employment tax records for at least 4 years after the tax becomes due or is paid, whichever is later. Records include timesheets, paystubs, W-2 copies, ACH/payment confirmations, and SUTA filings. Colorado follows the federal 4-year baseline for state purposes. Keep payroll records together with your tax filings in one organized place — most household employer audits start with the IRS or state agency asking for these records.

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, you may also need to withhold a small monthly local tax from their pay.

Colorado household employer quick facts

State Income Tax Withholding

State Unemployment

Disability Insurance

Paid Family Leave

Minimum Wage

$15.16/hour

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SUTA Rate Range

0% - 11.01%

New employers: 3.05% 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: withhold $5.75/month if your employee earns $500+ there

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 and earns $500 or more in a calendar month, you withhold $5.75 from their pay that month and send it to the city. That's Denver's Occupational Privilege Tax, and it's a per-month test, so a month under $500 doesn't count. You don't owe the separate $4.00 employer half that businesses pay. Denver exempts households from it because hiring a nanny isn't running a business in the city. You do need to register with Denver, which is free, and file 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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