Colorado Labor Burden Calculator

Find the fully burdened labor rate in Colorado, pre-filled with local SUI and tax estimates.

Pre-filled with Colorado estimates: SUI 1.7% on a $23,800 wage base, state income tax ~4.4%. Edit any field below.

Social Security + Medicare (7.65%)

Federal unemployment (effective 0.6%)

Health, retirement, etc.

$37.04/hr

Fully burdened rate

23.4%

Burden added

$77,033

Annual cost

Burden breakdown

Employer FICA (Social Security + Medicare)7.7% · $2.30/hr
Federal Unemployment (FUTA)0.6% · $0.18/hr
State Unemployment (SUI)1.7% · $0.51/hr
Workers' Compensation1.5% · $0.45/hr
Benefits (health, retirement)8.0% · $2.40/hr
Overhead (PTO, equipment, admin)4.0% · $1.20/hr
Total burden23.4% · $7.04/hr

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Estimates only, using editable 2025 US defaults. Tax and insurance rates vary by employer, classification, and locality. Verify with a licensed accountant before relying on these figures.

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Calculating the fully burdened labor rate in Colorado starts with federal payroll taxes and adds the state-specific pieces. Flat 4.4% income tax with a mid-range SUI wage base. This calculator pre-fills Colorado's estimated new-employer SUI rate of 1.7% on a $23,800 wage base, then lets you layer in workers compensation, benefits, and overhead.

Colorado's estimated new-employer SUI rate of 1.7% on a $23,800 wage base caps state unemployment at $405 per employee per year, inside the typical range of $219 to $434 and the 17th highest of the 51 jurisdictions on this site. At a $30 pay rate the wage base is met in week 20, and SUI stops accruing for the rest of the year. Colorado also taxes wages, at an estimated 4.4% effective rate, which the employee pays rather than the employer. For a staffing agency billing in Colorado, the burden math follows the national pattern: FICA dominates, SUI matters until the wage base is met, and the workers comp class code decides the rest.

The result is the true hourly and annual cost of an employee in Colorado: the number you need before setting a bill rate or comparing a W2 hire against a 1099 contractor.

Labor burden in states bordering Colorado

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Colorado Labor Burden FAQ

What is the labor burden rate in Colorado?
In Colorado, the employer labor burden combines federal taxes (FICA 7.65%, FUTA 0.6%) with the state unemployment (SUI) rate, estimated around 1.7% for new employers on a $23,800 wage base, plus workers compensation, benefits, and overhead. Most Colorado employers land between 15% and 30% total burden. Every rate is editable in the calculator above.
How is the fully burdened rate calculated in Colorado?
Add all employer costs as a percentage of the base wage, then multiply the pay rate by (1 + total burden). The calculator pre-fills Colorado's SUI estimate and lets you adjust workers comp and benefits to match your business.
Does Colorado have a state income tax?
Yes. Colorado levies a state income tax (effective rate roughly 4.4% for a typical earner). Income tax is paid by the worker and does not change the employer's labor burden. It matters for the 1099 vs W2 take-home comparison instead.
Are these numbers tax advice?
No. These are editable 2025 estimates. Colorado SUI rates are experience-rated per employer and workers comp varies by class code. Confirm with a licensed accountant.