Each employer is responsible for calculating Payroll taxes for the employer and employee. There are Federal, State, and Local payroll taxes.

Federal Payroll Taxes: The 2019 tax rate for social security is 6.2% for the employer and 6.2% for the employee, or 12.4% total. The current rate for Medicare is 1.45% for the employer and 1.45% for the employee, or 2.9% total. For 2019, the FUTA tax rate is 6.0% There are also other considerations such as the Additional Medicare Tax Withholding Rate and Wage Base Limits for the social security tax.

State Payroll Taxes: Colorado Income Tax Withholding Tables can be found in this link. Below is a table with 2019 rates for colorado unemployment tax.

Local Payroll Taxes: Certain local jurisdictions have their own local payroll tax component. For example, the City of Aurora imposes an Occupational Privilege Tax (OPT) on individuals who work within the city limits.

Employees and Employers are subject to OPT of $2 per month if:

  • Gross earnings are $250 or more per calendar month
  • Employee works within the city of Aurora for any period of time during such month

Employers are required to match the Employee OPT of $2.00 per month, remitting to the city a total of $4 per month per employee.

  • Employee: $2 per month (withheld from paycheck monthly).
  • Employer Match: $2 per month for each taxable employee.