PEO companies in Colorado: costs with FAMLI and a $30,600 wage base

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A 10-person Colorado company pays $21,433 to $26,833 a year in Justworks PEO fees plus state and federal unemployment tax and the employer half of FAMLI, using Justworks' published $79 to $124 per employee per month (checked October 16, 2026). The Colorado lines are heavy: 3.05% unemployment tax on the first $30,600 of each new employee's pay and 0.44% of wages for FAMLI.

We found no Colorado PEO license, but employee leasing companies file an annual report and certification with the state's unemployment insurance division.

A PEO in Colorado is an employee leasing company that co-employs a client's staff and files an annual report and certification (form UITL-39) with the CDLE Division of Unemployment Insurance.

On this page

Why Colorado's unemployment line is so large

Texas taxes the first $9,000 of wages and Florida the first $7,000. Colorado taxes the first $30,600, and in 2026 the new employer rate is built from three parts: a 1.53% beginning rate, a 0.17% support surcharge and a 1.35% solvency surcharge. That is $933.30 per employee. Heavy construction starts at 6.285%.

There is relief coming. The CDLE introductory rates page says the solvency surcharge is not in effect for 2027, though the 2027 wage base and rates were not published as of October 16, 2026. When your PEO quotes year two, ask whether it has priced that change in.

FAMLI inside a PEO invoice

Colorado's Paid Family and Medical Leave Insurance premium is 0.88% of wages for 2026, split 0.44% employee and 0.44% employer, up to the $184,500 wage cap. An employer may choose to pay the whole premium. The maximum weekly benefit is $1,448.02.

On a PEO invoice FAMLI can show up as its own line or be folded into "employer taxes." Ask which, and whether the PEO or your company is the employer of record with FAMLI. The 2027 rate had not been announced on our check date.

The math for 10 Colorado employees

Assumptions: 10 employees on $50,000, a new UI account, and the employer paying only its half of FAMLI.

Yearly employer cost for 10 Colorado employees paid $50,000 each, on top of wages
Cost lineHow it is figuredPer year
Justworks PEO Basic fee$79 x 10 employees x 12 months$9,480
Justworks PEO Plus fee$124 x 10 employees x 12 months$14,880
Industry admin fee range (estimate)$40 to $160 x 10 x 12 (ADP guide, July 14, 2026)$4,800 to $19,200
FUTA0.6% net x first $7,000 x 10$420
Colorado UI3.05% combined new employer rate x first $30,600 x 10$9,333
FAMLI, employer half0.44% x $50,000 x 10 (employees pay the other 0.44%)$2,200
Justworks fee plus unemployment and state program taxesBasic or Plus fee + FUTA, Colorado UI and FAMLI ($11,953 together)$21,433 to $26,833
Employer FICA (owed with or without a PEO)7.65% x $50,000 x 10$38,250
All-in with Justworks, before health premiums and workers' compLine above + employer FICA$59,683 to $65,083
All-in at the industry fee range$40 or $160 fee + all taxes above$55,003 to $69,403

CDLE premium rates and the FAMLI calculator, 2026. Justworks pricing (checked Oct 16, 2026) and ADP industry figures (Jul 14, 2026). Denver's employer Occupational Privilege Tax of $4.00 a month per taxable employee is not included.

Colorado's state lines alone ($11,533 here) are more than Justworks PEO Basic's fee. For how health premiums and workers' comp add to this, see the PEO cost guide.

Denver: higher wage floor and the OPT

Colorado lets cities set their own minimum wage. In 2026 the state rate is $15.16, Denver's is $19.29, Edgewater's $18.17, and Boulder city and unincorporated Boulder County $16.82. Tipped cash wages are $12.14 statewide and $16.27 in Denver.

Denver also charges an Occupational Privilege Tax in any month an employee earns $500 or more for work in Denver: $5.75 withheld from the employee and $4.00 paid by the employer. Employees do not need to live in Denver for it to apply. Ask your PEO to show how it flags Denver work locations.

Colorado PEO rankings

Ranked by our scores, Justworks (67), TriNet (50) and ADP TotalSource (44) lead. None publishes a state list; Questco lists a Colorado regional phone line.

PEO scores out of 100, with Colorado coverage as each PEO publishes it
PEOScorePublished priceOn IRS CPEO list (Aug 7, 2026)Colorado coverage
1. Justworks67$79 to $124 per employee per monthYes (Justworks Employment Group LLC and 3 related)Not confirmed: Multi-state stated, no state list
2. TriNet50Quote onlyYes (TriNet HR III-B, Inc.)Not confirmed: Multi-state stated, no state list
3. ADP TotalSource44Quote onlyYes (ADP TotalSource, Inc. and related)Not confirmed: Multi-state stated, no state list
4. Paychex PEO34Quote onlyYes (Paychex PEO VI LLC, VII, Oasis HR Solutions III)Not confirmed: Multi-state stated, no state list
5. Insperity33Quote onlyYes (Insperity PEO HR, Inc.; Insperity PEO Services, L.P.)Not confirmed: Not stated
6. BBSI26Quote onlyNot foundNot confirmed: Multi-state support, no state list
7. Amplify HR Management23Quote onlyYes (Amplify HR Management, LLC)Not confirmed: Not stated
8. ExtensisHR22Quote onlyYes (Extensis Inc. and 5 related)Not confirmed: "Across the country", no state list
9. Engage PEO21Quote onlyYes (Engage PEO, LLC)Not confirmed: Not stated
10. PrestigePEO20Quote onlyYes (3 Prestige entities)Not confirmed: "National", no state list
11. Questco20Quote onlyYes (QUESTCO HR LLC)Not confirmed: lists a Colorado regional phone line; "from Arizona to Nebraska and beyond", no state list
12. Sequoia One17Quote onlyYes (Sequoia One PEO, LLC)Not confirmed: Not stated
13. Rippling PEO11Quote onlyNot found under the Rippling nameNot confirmed: Not stated
14. G&A Partners8Not verifiedLikely match, unconfirmedNot confirmed: Not verified (site blocked)
15. Vensure8Quote onlyNot found under the Vensure nameNot confirmed: Not stated

Colorado service as stated online by each PEO, October 16, 2026. IRS certified list: August 7, 2026 report. Our scores: October 17, 2026 (criteria).

Read the ADP TotalSource review for its renewal record and the TriNet review for its benefits complaints.

401(k) mistakes and how to catch them

Retirement plans are a quiet source of PEO errors. A Justworks customer on Trustpilot (September 18, 2026) said Justworks "forgot to remove terminated employees from the 401(k) plan." A TriNet reviewer on TrustRadius (August 23, 2026) described a 401(k) migration with missed employer contributions. Reconcile your 401(k) deposits against payroll each quarter for the first year.

Questions for a Colorado PEO

  1. Have you filed the UITL-39 employee leasing report with CDLE this year?
  2. How will FAMLI appear on our invoice, and who is the FAMLI employer?
  3. Does your year-two quote reflect the 2027 end of the solvency surcharge?
  4. How do you track Denver and Boulder minimum wages and the Denver OPT?
  5. Which entity is on the IRS CPEO list? (Check it on our CPEO list.)
  6. What does leaving cost, and how long can we reach W-2s?

Fired employees in Colorado must be paid immediately. See the Colorado payroll tax page, the full PEO rankings and PEO vs a payroll service.

Frequently asked questions

Does Colorado license PEOs?
Colorado has no PEO license in our research. Employee leasing companies file an annual report and certification (form UITL-39) with the CDLE Division of Unemployment Insurance, and no public list of filers was found.
How much does a PEO cost in Colorado?
Justworks publishes $79 to $124 per employee per month (checked October 16, 2026). Colorado adds 3.05% UI on the first $30,600 per new employee ($933.30) and the employer's 0.44% FAMLI share, so 10 employees on $50,000 cost $21,433 to $26,833 a year in fees and those taxes.
Who pays Colorado FAMLI under a PEO?
The 0.88% FAMLI premium for 2026 is split 0.44% employee and 0.44% employer, up to a $184,500 wage cap; the employer may pay all of it. Ask the PEO how both halves appear on your invoice and pay stubs.
What is the Colorado SUTA rate for new employers in 2026?
The combined new employer rate is 3.05% (1.53% beginning rate, 0.17% support surcharge, 1.35% solvency surcharge) on a $30,600 wage base. Heavy construction starts at 6.285%. CDLE says the solvency surcharge is not in effect for 2027.
What is the Denver minimum wage in 2026?
Denver's minimum wage is $19.29 in 2026, against $15.16 statewide, according to CDLE. Denver's tipped cash wage is $16.27.
Sources (12)
  1. Justworks: Justworks pricing (PEO Basic and PEO Plus) (checked Oct 16, 2026)
  2. TriNet: TriNet PEO pricing (checked Oct 16, 2026)
  3. ADP: What is the cost of a PEO (updated July 14, 2026) (checked Oct 16, 2026)
  4. IRS: Active certified PEO list (report date Aug 7, 2026) (checked Oct 16, 2026)
  5. Colorado CDLE: Employee leasing company annual report and certification (UITL-39) (checked Oct 16, 2026)
  6. Colorado CDLE: UI premium rates (checked Oct 16, 2026)
  7. Colorado CDLE: Introductory rates (checked Oct 16, 2026)
  8. Colorado FAMLI: Premium and benefits calculator (checked Oct 16, 2026)
  9. Colorado CDLE: Local minimum wages (INFO #19) (checked Oct 16, 2026)
  10. Colorado CDLE: Division of Workers' Compensation (checked Oct 16, 2026)
  11. Trustpilot: Justworks reviews (2.1 from 37 reviews) (seen Oct 16, 2026)
  12. TrustRadius: TriNet reviews (checked Oct 2026)

This page is general information, not tax, legal or accounting advice. Rules and rates change, so check the official source linked above before you file or sign a contract. Read our disclaimer.

Checked Oct 17See Justworks pricing on Justworks’s site