All states · Updated for 2026
How to pay a nanny in Colorado
Everything a Colorado family has to do to pay a nanny, housekeeper or caregiver legally: the taxes, the registrations, the forms, and the deadlines. CareTab does the math and reminds you; you keep paying them the way you already do.
The short version
- Federal: withhold 7.65% Social Security and Medicare from their pay and match it; pay FUTA (0.6% of the first $7,000.00); file Schedule H with your 1040; give them a W-2 by Jan 31.
- Colorado unemployment tax: register with Colorado Department of Labor and Employment (CDLE), Unemployment Insurance Division after $1,000 or more in wages paid to one or more workers in a private home during a calendar quarter (cdle domestic-employer liability rule); new employers pay 3.05% on the first $30,600.00 of wages; file Quarterly wage and premium report (MyUI Employer+) quarterly.
- Colorado income tax: withholding is voluntary for household employers (form DR 0004).
- State programs: CO Family and Medical Leave Insurance (FAMLI) (0.44% employee, 0.44% employer).
- New hire report: within 20 days of their start date.
- Minimum wage: $15.16/hour. Overtime: 1.5× over 40 h/week or 12 h/day for live-out nannies.
- Paid sick leave: required (Healthy Families and Workplaces Act (HFWA): at least 1 hour of paid sick leave per 30 hours worked, up to 48 hours per year, for employers of any size including household employers. Public-health-emergency leave (up to 80 hours) applies only when a PHE is declared.).
- Workers' compensation: CDLE DWC: every Colorado employer with one or more employees must carry workers' compensation insurance (commercial carrier or Pinnacol Assurance). The Workers' Compensation Act excludes domestic/maintenance work for a private homeowner that is not full-time (generally fewer than 40 hours per week and fewer than 5 days per week) — confirm the part-time exclusion with the Division before relying on it.
Step by step
- Get an EIN from the IRS (free, online, 10 minutes).
- Have your nanny complete Form I-9 and, if they want federal income tax withheld, a W-4 and DR 0004.
- File the Colorado new-hire report within 20 days at the state site.
- Register with Colorado Department of Labor and Employment (CDLE), Unemployment Insurance Division once you cross $1,000 or more in wages paid to one or more workers in a private home during a calendar quarter (cdle domestic-employer liability rule) (registration).
- Each payday: track hours, pay at least minimum wage and overtime, withhold 7.65% plus state program premiums, give a pay stub.
- Each quarter: file Quarterly wage and premium report (MyUI Employer+). Last day of the month after each quarter (Apr 30, Jul 31, Oct 31, Jan 31). 2026 chargeable wage limit $30,600 (CDLE). 2026 introductory (new-employer) rate for non-construction employers 3.05% = 1.53% base + 0.17% support rate + 1.35% solvency surcharge (CDLE 2026 Introductory Rates). CDLE 2027 figures: wage limit $32,100, introductory rate 1.70% (no solvency surcharge).
- January: W-2 to your nanny, W-2/W-3 to the SSA, DR 1093 Annual Transmittal of State W-2 Forms to the state. April: Schedule H with your 1040.
Run your numbers
Use the free Colorado nanny tax calculator: take-home pay, what you withhold, and your total cost including employer taxes.
Frequently asked
Do I have to pay nanny taxes in Colorado?
Yes. Once you pay a household employee $3,000.00 or more in a year you owe Social Security and Medicare (7.65% withheld from your nanny and 7.65% from you), and FUTA once you pay $1,000.00 in any quarter. Colorado unemployment tax applies after $1,000 or more in wages paid to one or more workers in a private home during a calendar quarter (cdle domestic-employer liability rule).
Do I withhold Colorado income tax from my nanny?
Colorado does not require household employers to withhold state income tax; you can withhold voluntarily using DR 0004 if your nanny asks.
What forms do I file in Colorado?
Quarterly wage and premium report (MyUI Employer+) quarterly with Colorado Department of Labor and Employment (CDLE), Unemployment Insurance Division, DR 1093 Annual Transmittal of State W-2 Forms annually, a W-2 for your nanny and W-3 to the SSA by Jan 31, and Schedule H with your federal return.
Does my nanny get overtime in Colorado?
Live-out nannies get 1.5× over 40 hours a week or 12 hours a day. Live-in nannies are also owed overtime in Colorado. COMPS Order #40 Rule 4.1.1: time-and-a-half for hours over 40 per workweek, over 12 per workday, or over 12 consecutive hours (whichever yields more). Domestic workers in private homes are covered; the only household exemption is Rule 2.2.7 'casual babysitters employed in private residences directly by households'. No general live-in exemption. State minimum wage $15.16 for 2026 (tipped $12.14); Denver's local minimum wage is higher and applies to work performed in Denver (not encoded).
What is the minimum wage for a nanny in Colorado?
$15.16 per hour in 2026.
Pay your Colorado nanny legally for $14.99/month
Hours, paychecks with every tax computed, pay stubs, PTO, and a filing calendar with Quarterly wage and premium report (MyUI Employer+) pre-filled. 14-day free trial, no card needed.
Start free trialSources: DR 1098 (10/21/25) — 2026 Colorado Withholding Worksheet for Employers; DR 0004 (10/29/25) — 2026 Colorado Employee Withholding Certificate; CDLE — Unemployment Insurance premiums: chargeable wage limits and 2026 introductory rates; CDLE — Employer liability requirements (domestic employers: $1,000 in a calendar quarter); FAMLI Division — Employers (2026 premium 0.88%, 0.44%/0.44% split; 9-or-fewer employers remit 0.44%); CDLE — Wage and Hour Laws including Paid Sick Leave (HFWA: 1 hour per 30 worked, up to 48 hours/year); 2026 minimum wage $15.16; COMPS Order #40 (7 CCR 1103-1), adopted 12/8/25, effective 2/1/26 — Rule 4.1.1 overtime; Rule 2.2.7 in-residence workers; CDLE Division of Workers' Compensation — Employers. Rules for 2026 are provisional. General information, not tax or legal advice.