Colorado Employer Checklist
We’ve got you covered on the payroll end. Please read carefully the following resources and information to help keep you in compliance with other CO laws.
If your employee works 40 hours/week+ or 5 or more days/week, you are required to maintain workers’ compensation insurance coverage for on-the-job injuries. This insurance is typically provided under your homeowner’s or renter’s insurance policy. You might already be covered, but check with your insurance provider to be sure you are sufficiently covered. If you still need coverage, you can get it through this Colorado insurance provider.
Federal law requires that all employers request this form to be completed by the prospective employee. Don’t submit it to anyone, just keep it with your employer records in case of an audit.
I-9 form: https://www.uscis.gov/i-9
W-4 form: https://www.irs.gov/pub/irs-pdf/fw4.pdf
To be sure your employee doesn’t get an unexpected tax bill, or have too much withheld, have them complete a W-4 form when they are hired, or anytime they experience a change in their withholding requirements (marriage, birth of child, additional income, etc.). You can update your employee’s profile in the Nest Payroll app at anytime during the year.
Colorado requires the following poster to be given to your employee:
Required by law: Notice to workers: In English and In Spanish
See here for other applicable notices for your employee: Posters for Colorado Employers
Having an agreement reduces awkwardness and misunderstandings, especially as things come up you just didn’t anticipate. If you don’t have an agreement with your employee, you can download this one and modify for your situation. This one is for a nanny, but you can easily change out the role of the employee, such as for a housekeeper or caregiver, making it work for you.
Additionally, Hand In Hand, a non-profit we love that supports domestic employers + employees, is a great resource for tackling all sorts of challenges that come with household employment, creating a more dignified and respectful workplace for all. Take advantage of their excellent and free sample contracts and guide books.
PAID SICK TIME: REQUIRED
Sick leave is now required by all CO employers, accrued at one hour of paid sick leave for every 30 hours worked, up to a maximum of 48 hours per year.
Healthy Families and Workplace Act
VACATION TIME or PAID TIME OFF: NOT REQUIRED
Paid vacation time is not required, but it could be an important benefit to offer. Vacation/PTO hours can be entered in the Nest Payroll app when creating a paycheck.
MINIMUM WAGE: REQUIRED BY LAW
All household employees are classified as hourly (non-exempt) and are subject to minimum wage protections. To check if your city has a higher minimum wage requirement than the state, click on the following:
The Economic Policy Institute - Minimum Wage Tracker
CO Dept. of Labor and Employment- Minimum Wage
Also, when you add an employee to the Nest Payroll app, the minimum wage for your city should pop up.
OVERTIME: REQUIRED BY LAW
Overtime of 1.5x the hourly rate for any hours worked over 40 in a week. Overtime is not required for live-in employees.
Details: CO Dept. of Labor and Employment - Overtime
The information provided on this page is general in nature. This is not to be taken as tax, legal, benefits, financial, or HR advice. Since rules and regulations change over time and can vary by location, consult an attorney or financial advisor for your specific situation.