Colorado Pay Stub,
Paycheck & Tax Guide

A Colorado paystub should clearly show how an employee's gross wages become net wages after Colorado income tax withholding, federal taxes and other legitimate payroll deductions. Colorado has detailed wage statement requirements plus state-specific payroll rules involving minimum wage, overtime, paid leave and Family and Medical Leave Insurance.

Colorado employers must provide itemized pay statements. Required information includes gross wages earned, all withholdings and deductions, net wages earned and the inclusive dates of the pay period.

Colorado Payroll at a Glance

Colorado payroll combines federal taxes with state income tax withholding and several Colorado-specific employment programs.

Colorado uses a flat 4.40 percent individual income tax rate. The statewide minimum wage is $15.16 per hour for 2026.

What Must Be Included on a Colorado Pay Stub?

Colorado employers must furnish employees with an itemized pay statement. The statement should give employees a clear way to understand the calculation behind their final wage payment.

• Gross wages earned
• Withholdings
• Deductions
• Net wages earned
• Inclusive dates of the pay period

Employers can include additional useful payroll information such as regular hours, overtime earnings, pay rate, pay frequency and year-to-date totals when appropriate.

After genuine payroll figures have been calculated, a Colorado pay stub generator can organize those details into an itemized payroll document.

What Taxes and Deductions Affect a Colorado Paycheck?

A Colorado paycheck can include federal income tax, Colorado income tax, Social Security, Medicare and Colorado FAMLI contributions. Other benefit deductions or legally authorized deductions can also reduce take-home pay.

Colorado FAMLI creates a state-specific payroll item. The total premium rate is 0.88 percent for 2026. Employees generally contribute 0.44 percent of covered wages under the standard shared-premium structure.

An employee can use a Colorado paycheck calculator to see how these items may affect estimated take-home pay.

How Is Net Pay Calculated in Colorado?

Colorado net pay begins with gross compensation then subtracts employee taxes and other applicable deductions.

Net Pay = Gross Pay - Federal Withholding - Colorado Withholding - Social Security - Medicare - Employee FAMLI Premium - Other Deductions

The formula is only a framework. Taxable wages can differ depending on the type of deduction or benefit. For hourly employees, gross wages can include regular earnings plus overtime. Salaried employees generally begin with the salary allocated to the relevant payroll period.

How Does Colorado Income Tax Affect Payroll?

Colorado uses a flat individual income tax rate of 4.40 percent. Payroll withholding is not necessarily identical to an employee's final annual Colorado tax liability. Withholding is a payment collected throughout the year toward the expected tax.

The Colorado income tax guide explains taxable income, withholding and the state tax calculation separately.

Colorado Minimum Wage in 2026

Colorado's statewide minimum wage is $15.16 per hour in 2026. The minimum cash wage for qualifying tipped employees is $12.14 per hour. Local minimum wage rules can produce higher requirements in certain jurisdictions.

Employers need to determine which wage standard applies before calculating payroll. Statewide minimum wage should not automatically be treated as the only applicable wage rule.

Colorado Overtime and Payroll

Colorado has state overtime rules that operate alongside federal overtime requirements. Employers should determine whether an employee is exempt or nonexempt before calculating gross wages.

For covered employees, the correct regular rate plus qualifying overtime earnings should be calculated before tax withholding. Incorrectly classifying overtime as ordinary wages can cause gross pay, tax withholding and net pay to be wrong even if the tax rates themselves are entered correctly.

How Does Colorado FAMLI Affect a Paycheck?

Colorado's Family and Medical Leave Insurance program can create a payroll deduction for covered employees. The combined FAMLI premium rate is 0.88 percent of wages for 2026. Under the standard arrangement, the employee share is generally 0.44 percent.

FAMLI is separate from Colorado state income tax, Social Security and Medicare. A Colorado pay stub should classify the contribution accurately rather than combining it into a generic state tax amount.

Colorado Paid Sick Leave and Payroll Records

Colorado requires covered employers to provide accrued paid sick leave at a rate of at least one hour for every 30 hours worked up to the applicable annual limit. Paid leave tracking is different from payroll tax withholding but it can affect hours, compensation and payroll records.

Colorado Paystub vs. Paycheck

A Colorado paystub explains the calculation behind an employee's wages. A paycheck is the actual payment delivered to the employee. The statement records gross wages, deductions and net wages while the paycheck or direct deposit represents the final amount paid.

A Colorado pay stub can organize these figures after payroll has been calculated accurately.

Colorado Sales Tax Is Separate From Payroll Tax

Colorado's state sales tax rate is 2.9 percent. Local sales taxes can apply in addition to the state rate, which makes the combined sales tax rate location-dependent.

Sales tax belongs to the taxation of transactions. It should not be listed as an employee payroll deduction.

See our Colorado sales tax guide for more detail about state rates, local rates and sales tax calculations.

Colorado Payroll Requirements for Employers

Colorado employers need to manage more than federal withholding. State income tax, itemized wage statements, minimum wage, overtime, paid sick leave and FAMLI can all interact with payroll operations.

A practical Colorado payroll workflow includes verifying worker classification, tracking compensable time, calculating regular and overtime wages, determining gross pay, applying required withholding, applying authorized deductions and issuing an accurate itemized pay statement.

Create a Check Stub With Accurate Colorado Payroll Information

Colorado employers should calculate wages and deductions before creating the final payroll record. A pay stub should document genuine payroll information rather than create or alter the underlying earnings.

When your payroll figures are ready, create check stub now using accurate employer information, employee information, earnings and deductions.

Online PayStub is intended for lawful payroll, business and recordkeeping use. The information entered should reflect actual work and genuine payroll records.