Co-employment is the core idea behind a Professional Employer Organization (PEO). The PEO becomes a second employer on paper. That lets it pay your staff, insure them for injuries, and offer group benefits, while you still direct the work. Colorado has 730,887 small businesses employing 1.2 million people, and many turn to this model as headcount grows.
Colorado packs paid leave premiums, a rising jobless insurance wage base and city head taxes into the same pay run. Injury coverage and paid sick leave apply from day one. Wage floors differ too: the state minimum is $15.16 an hour, while Denver, Edgewater and Boulder set their own. A Colorado PEO takes over that tracking.
PEO Colorado: Why Small Businesses Use One
State income tax is the simple part: a flat 4.40% applied after an annual allowance, computed from the federal W-4 or the optional DR 0004. Paid Family and Medical Leave Insurance (FAMLI) then takes 0.88% of wages, half from the worker. Denver adds an Occupational Privilege Tax (OPT), a flat monthly head tax, and Glendale, Greenwood Village and Sheridan run their own versions. Minimum wages reset every January and vary by city. Colorado payroll services earn their fee because each program brings its own rate, threshold, and filing date.
INSIGHT: What comes out of a Colorado paycheck in 2026?
Income tax is only the first line. FAMLI and, in a few cities, an OPT give Colorado pay stubs more deductions than many states.
- Income tax: flat 4.40% after the DR 1098 allowance (2026).
- FAMLI: 0.88% of wages, of which the employee pays 0.44% (2026).
- Denver OPT: $5.75 a month from each employee earning $500 or more there (2026).
- Wage floor: $15.16 across the state, $19.29 inside Denver city limits (January 2026).
Sources:
as of October 2026
Employers pay unemployment insurance (UI) alone. It applies to the first $30,600 of each worker’s 2026 pay, and most new accounts pay 3.05% with the solvency surcharge. Wages are reported each quarter through MyUI Employer. Firms with 10 or more staff add the employer half of FAMLI, and Denver bills $4.00 per worker each month. New hires go to the state within 20 days, plus FICA and FUTA. The payroll services Colorado firms hire keep all of this on a fixed calendar.
Workers’ compensation covers every employee, including part-time staff and family members. It often tips an owner toward a PEO, which can cover staff under its own policy. The Healthy Families and Workplaces Act (HFWA) sets paid sick leave at 1 hour per 30 worked, up to 48 hours a year. It applies to every employer. The state’s overtime order adds daily limits. Pooled health and 401(k) plans help with hiring and also lift the SecureSavings duty. That bundle is what PEO services in Colorado are built around.
INSIGHT: What does a Colorado employer have to provide?
Injury coverage and paid sick leave begin with employee number 1. Firms with 5 or more staff and no plan must also offer the state savings program, unless a PEO 401(k) covers them.
- Workers’ compensation: required for any business with employees, part-time or family included (DWC, 2026).
- HFWA sick leave: 1 hour for each 30 hours worked, capped at 48 hours a year (2026).
- Colorado SecureSavings: applies at 5+ staff once a firm is 2 years old and lacks its own plan (2026).
- Affordable Care Act (ACA) coverage duty: triggered by 50 full-time equivalents (IRS, 2026).
A PEO in Colorado shares employer status and folds payroll, benefits, workers’ comp, and HR into one contract, while you run the business. A payroll-only vendor writes the checks and files the returns, nothing else. HR outsourcing without co-employment falls in the middle, and my explainer on what a PEO is lays out the trade-offs. Colorado does not license PEOs. Instead, each one files an employee leasing annual report and certification with the Colorado Department of Labor and Employment (CDLE) by June 30. The IRS also posts its Certified PEO (CPEO) list.
I reviewed 15 options for employers already running a team here: Colorado PEOs and payroll firms, plus national providers with Front Range offices. Each entry covers what the provider handles, how it bills, and who it fits, so choosing a PEO for Colorado staff takes less guesswork. Readers who also want nationwide options can scan my roundup of the best PEO companies.
Top 15 PEO Companies in Colorado
Not all PEO companies, Colorado-based or national, solve the same problem, so ask 3 questions first. Is the goal a full bundle with benefits and injury coverage, bare pay runs, or HR guidance with no shared employer status? What is your headcount? Workers’ comp starts at 1, SecureSavings at 5, the FAMLI employer share at 10, and the ACA mandate at 50.
Then weigh local against national. A Broomfield or Westminster firm may respond faster, while a national PEO often offers a broader benefits menu. The best PEO Colorado owners can choose matches their headcount, industry, and appetite for paperwork.
My criteria were the same for every provider: correct FAMLI, UI, and OPT handling, city minimum wage tracking, and sick leave and overtime records. Then I looked at injury-cover setup, the health and 401(k) menu, any federal certification or ESAC claim, and whether prices are visible. Alphabetical order keeps favoritism out.
All 15 providers appear in A-to-Z order. The sequence says nothing about quality, preference, or ranking.
Colorado Payroll Services
Provider Type:
Denver pay-run specialist that can add co-employment
Company Description:
Colorado Payroll Services is a payroll service company in Colorado that serves Denver and the rest of the state. It adds time and attendance, HR management, benefits and 401(k) administration, and PEO co-employment on request.
Key Specialty Area:
Payroll first, with co-employment available when needed
Service Cost:
Free estimate and proposal; no rates are posted
Top Advantages:
- Starts with payroll and adds PEO only if you want it
- Time and attendance systems to cut timesheet errors
- Background checks and screening through the same contact
Scope of Services:
- Pay runs for small Denver businesses, taxes filed
- PEO services, workers’ comp and benefits administration
- HR management, 401(k) administration and timekeeping
Our Verdict
Suits a Denver shop owner who wants simple payroll today and the option of a PEO later.
Comploy
Provider Type:
Homegrown HR, insurance and pay vendor
Company Description:
Comploy was started by Chris Myers after years selling payroll for national providers. This Colorado PEO company offers a PEO with master health plans, an ASO (administrative services only) plan, stand-alone payroll, and commercial insurance.
Key Specialty Area:
Payroll and insurance for child care, construction, and cannabis
Service Cost:
Priced once Comploy reviews your setup
Top Advantages:
- Choice of PEO, ASO or payroll alone
- Commercial insurance placed by the same team
- Child care plans built around early education rules
Scope of Services:
- Payroll processing and employee self-service
- Medical, eye, dental and retirement coverage
- HR management, talent tools and commercial insurance
Our Verdict
A practical pick for a Front Range child care center that wants insurance and payroll from one office.
Concurrent HRO
Provider Type:
Broomfield PEO, part of PrestigePEO
Company Description:
Concurrent HRO is a full-service PEO on Upham Street in Broomfield, branded as a PrestigePEO company. This PEO company, Colorado-based but serving the continental US, covers payroll, benefits, workers’ comp, and retirement. The IRS has listed Concurrent HRO LLC as a CPEO since October 2023.
Key Specialty Area:
Broomfield service team, PrestigePEO resources
Service Cost:
Figures shared in a first meeting
Top Advantages:
- Local team with a national parent behind it
- Named among Denver Business Journal Best Places to Work
- Says it holds ESAC accreditation through its group
Scope of Services:
- Payroll and benefits administration
- Workers’ comp, retirement and compliance
- HR services for small and mid-sized firms
Our Verdict
Worth a call for a Broomfield or Boulder company that wants a nearby PEO with certified tax status.
Enscicon
Provider Type:
Denver staffing firm with payroll and PEO services
Company Description:
Enscicon Corporation is an engineering and construction staffing agency on North Speer Boulevard in Denver. Besides recruiting, it runs payroll and PEO services for contract field and office staff, citing 25 years of experience.
Key Specialty Area:
Payroll for engineering and construction field crews
Service Cost:
Flexible pricing, quoted per project
Top Advantages:
- Dedicated payroll, accounting and HR team per client
- Health cover and retirement savings for contract crews
- Background and drug tests handled during onboarding
Scope of Services:
- Payroll and PEO services for contract workers
- Injury cover, jobless claims and benefit enrollment
- Direct hire, contract staffing and retained search
Our Verdict
My pick for a Colorado engineering firm that pays project crews and wants recruiting from the same partner.
Group Management Services
Provider Type:
Richfield co-employer staffing a DTC Parkway office
Company Description:
Group Management Services (GMS) started in 1996 in Richfield, Ohio, and works with smaller and mid-market firms. Its Denver office sits on DTC Parkway in Greenwood Village, 1 of 25 locations. Group Management Services, Inc. holds its federal certification.
Key Specialty Area:
Benefits, payroll, and risk support from a Tech Center office
Service Cost:
Proposal tied to team size and modules picked
Top Advantages:
- Local office in the Denver Tech Center
- Its own HR software paired with live support
- Safety programs to cut injury claims
Scope of Services:
- Payroll processing and tax compliance
- Benefits administration and employee benefits
- HR management and risk management
Our Verdict
A sensible fit for a Greenwood Village firm that wants a certified PEO with a nearby office.
HELLO PEO
Provider Type:
PEO education and fit-assessment service
Company Description:
HELLO PEO explains how co-employment works and runs a FitScore check that tells an owner whether a PEO suits the business. It targets firms with 5 to 1,000 employees and trains insurance brokers on PEO arrangements through its KnowPEO sessions.
Key Specialty Area:
Deciding whether a PEO fits before buying one
Service Cost:
No pricing shown; contact by phone or form
Top Advantages:
- FitScore questionnaire before any sales pitch
- Plain explanation of co-employment and common myths
- Useful for multi-state or multi-entity companies
Scope of Services:
- PEO education for business owners
- Fit assessment through the FitScore tool
- Broker training through KnowPEO forums
Our Verdict
Worth a look for an owner still unsure whether co-employment makes sense at all.
Hybrid Payroll
Provider Type:
Remote-first pay and co-employment firm
Company Description:
Hybrid Payroll was founded in 2014 by Stephen Sullivan and works remotely from a Foxfield mailing address. It began as a Colorado payroll service for cannabis firms and now runs payroll, PEO co-employment, HR, benefits and timekeeping for small and mid-sized businesses.
Key Specialty Area:
Published per-employee prices for payroll and PEO
Service Cost:
Hybrid Essential from $6 and Hybrid PEO from $17 per employee per weekly payroll
Top Advantages:
- Prices posted openly, by headcount and pay schedule
- Every tax return, down to the city level, in the fee
- Early specialist in cannabis industry payroll
Scope of Services:
- Payroll, tax filing, W-2s, and garnishments
- Shared employment with insurance and benefits
- Timekeeping, applicant tracking and performance tools
Our Verdict
My pick for a Denver dispensary or small team that wants to see the price before the first call.
*As pricing is subject to change, we are listing prices as they stand in November 2026
Insperity
Provider Type:
Texas PEO with a Tech Center sales team
Company Description:
Insperity runs a Denver Tech Center sales office on South Syracuse Street, backed by its Kingwood, Texas headquarters. Clients get co-employment, payroll, benefits, and in-house HR software. Insperity PEO Services, L.P. is IRS-certified, and the ESAC directory includes it.
Key Specialty Area:
Large HR team with a Tech Center sales office
Service Cost:
Price set after a look at your operations
Top Advantages:
- Sales office in the Denver Tech Center
- HR specialists available for policy questions
- Benefits and payroll on the same software
Scope of Services:
- Payroll and employment tax administration
- Benefits and retirement plan administration
- HR support, training and HR technology
Our Verdict
Fits a 60-person Denver company that wants a broad HR bench and is ready to pay for it.
InTANDEM HR
Provider Type:
Denver PEO
Company Description:
InTANDEM HR offers Colorado PEO services from South Cherry Street in Denver for small and mid-size employers. Benefits, HR, payroll, and risk management come under one roof. The IRS has listed InTandem Human Resources, LLC as a CPEO since January 2017.
Key Specialty Area:
Cherry Creek co-employer for nonprofits and clinics
Service Cost:
No-cost meeting comes before any figures
Top Advantages:
- Certified since the federal program opened in 2017
- Clients pooled for stronger benefits buying power
- Local team for payroll and employee questions
Scope of Services:
- Payroll through its HR information system
- Employee benefits and HR compliance
- Risk management and safety programs
Our Verdict
A good fit for a Denver nonprofit or medical practice that wants a certified local PEO.
Partners PEO
Provider Type:
Denver PEO for high-risk trades
Company Description:
Partners PEO is a family-owned PEO in Denver that focuses on high-risk industries. Roofing, drywall, electrical, paving, HVAC, and trucking firms get payroll, workers’ comp, benefits, and HR from a team citing 50+ years of combined experience.
Key Specialty Area:
Workers’ comp and payroll for construction and trucking
Service Cost:
Figures follow a no-charge HR review
Top Advantages:
- Prevailing-wage reports for government jobs
- Workers’ comp built for high-risk trades
- Employee handbooks and separation support
Scope of Services:
- Payroll and employment tax filing
- Workers’ comp, insurance and benefits
- Onboarding, handbooks and HR support
Our Verdict
My first call for a Colorado roofing or paving contractor with costly injury coverage.
PassioHR, Inc.
Provider Type:
Englewood PEO focused on engagement
Company Description:
PassioHR works from Inverness Circle in Englewood and pairs its PEO HR services, including for Colorado clients, with an employee engagement program. It covers consulting, compliance, payroll, and integrated benefits, and reports a SOC 1 Type II audit.
Key Specialty Area:
PEO with an employee engagement program
Service Cost:
Proposal built after a discovery call
Top Advantages:
- Engagement program built into the PEO
- SOC 1 Type II controls audit completed
- Health, dental, vision, disability and life plans
Scope of Services:
- Payroll services and compliance
- Medical, dental and 401(k) packaged inside the PEO
- HR consulting and engagement planning
Our Verdict
Worth a meeting for an Englewood team that cares as much about morale as about payroll.
Questco
Provider Type:
Texas PEO with a Colorado phone line
Company Description:
Questco is a PEO from The Woodlands, Texas, with regional lines in Texas, Nebraska, Arizona and Colorado. It handles HR operations, payroll, benefits, compliance, HR technology, and safety and workers’ comp. Federal certification sits with QUESTCO HR LLC.
Key Specialty Area:
Hazard reviews linked to the injury policy
Service Cost:
Tailored proposal; try the site’s HR cost tool first
Top Advantages:
- Colorado phone line with a 719 area code
- Yearly HR plan set with the owner
- Safety consulting tied to injury coverage
Scope of Services:
- Payroll and HR operations
- Benefits and retirement plans
- Compliance, safety and workers’ comp
Our Verdict
A solid option for a Colorado Springs employer with crews that face real injury risk.
StaffScapes
Provider Type:
Westminster PEO
Company Description:
StaffScapes is based on Tejon Street in Westminster and has run HR for 25 years. Among the PEO service providers Colorado has, it calls itself the longest-standing privately owned one, offering payroll, benefits, a 401(k), and outsourced HR.
Key Specialty Area:
Long-running local PEO with small-business benefit plans
Service Cost:
Free consultation with a side-by-side cost comparison
Top Advantages:
- Side-by-side cost comparison before signing
- Benefit plans chosen for smaller businesses
- Free overtime calculator and compliance updates
Scope of Services:
- Payroll processing, filing, and reporting
- Employee benefits and 401(k) administration
- Outsourced HR, training and compliance
Our Verdict
Suits a Westminster or Thornton company that wants a long-established local PEO.
VensureHR
Provider Type:
National co-employer with a statewide landing page
Company Description:
VensureHR is a national PEO whose Colorado page names Denver, Colorado Springs, Aurora, and Fort Collins. Its US PEO covers HR, payroll, benefits, and compliance in packages tailored to each client. No Vensure name appears among federally certified PEOs.
Key Specialty Area:
Statewide reach from Denver to Fort Collins
Service Cost:
Numbers arrive after a scheduled call
Top Advantages:
- Colorado page covering the main Front Range cities
- Packages adjusted to each company’s needs
- In-house HR technology for owners and staff
Scope of Services:
- Payroll processing and tax filing
- Benefits administration and enrollment support
- HR outsourcing and compliance services
Our Verdict
Worth a quote for a company with sites in both Denver and Fort Collins.
Vida HR
Provider Type:
Springs and Fort Collins HR firm, no co-employment
Company Description:
Vida HR was established in 2015 and has offices in Colorado Springs and Fort Collins. It sells HR outsourcing, payroll and payroll tax services, and benefits administration without co-employment, and says it serves 145+ companies.
Key Specialty Area:
Dedicated HR experts while you stay sole employer
Service Cost:
Pricing follows an intro call or demo
Top Advantages:
- Named HR adviser instead of a support queue
- Paid sick leave reviews and compliance training
- Works for teams of 5 up to 500 employees
Scope of Services:
- Payroll and payroll tax services
- HR outsourcing and benefits administration
- Recruitment process outsourcing and talent assessment
Our Verdict
My pick for a Colorado Springs employer that wants an HR partner but no shared employer status.
How Much PEO and Payroll Services Cost in Colorado
Some PEOs charge a flat monthly fee per worker; others take a cut of gross wages. Most send an individual quote. Payroll services in Colorado are the cheaper tier, billed per check run or per head, with no benefits or injury coverage included. Hybrid Payroll is the only provider here that posts prices. For 1 to 9 employees on a weekly payroll, it lists $6 per employee for Hybrid Essential and $17 for Hybrid PEO. On a monthly schedule, those become $24 and $70.
The PEO fee typically covers pay runs, filings, benefit enrollment, workers’ comp paperwork, and an HR contact. Health and injury premiums, 401(k) plan fees, and setup charges are separate. Statutory costs stay too. Jobless insurance on the first $30,600 of pay stays yours, as does the employer half of FAMLI at 10 or more employees. City head taxes and federal payroll taxes sit above that. Judge offers by what each worker costs over a full year.
INSIGHT: What should Colorado PEO providers handle for you?
Colorado payroll mixes state and city programs. Ask PEO providers, Colorado-based or national, how they handle each one.
- UI wage base: $30,600 in 2026, rising to $32,100 in 2027.
- Paid leave premium: 0.88%, half each from boss and worker at 10+ staff (2026).
- OPT cities: Denver, Glendale, Greenwood Village, and Sheridan (Aurora repealed its OPT in 2025).
- Minimum wage: $15.16 in 2026, rising to $15.71 in 2027.
A Colorado team with a designer in San Francisco or a rep in Los Angeles meets state disability insurance and overtime counted by the day. Before that first hire, read my take on PEO companies in California.
Florida pulls the other way, with no state income tax and no paid leave premium. Owners sending staff to Tampa or Orlando can compare the PEO companies in Florida I reviewed.
FAQs on PEO and Payroll Services in Colorado
What does a PEO do for a small business in Colorado?
A co-employment provider shares employer status with you, so it can run payroll and file state, city, and federal employment taxes. You can then run group medical and retirement plans, injury coverage, and HR paperwork like sick leave logs through it. You decide who gets hired or let go, and how the day runs. The contract lists each duty and who owns it, so read it closely before you commit. Ask too how the provider handles your FAMLI and city tax filings.
How much is the FAMLI premium in Colorado for 2026?
The premium is 0.88% of wages for 2026, down from 0.9% in earlier years. Employers with 10 or more employees split it evenly, so each side pays 0.44%. Smaller employers do not owe the employer half, but they must still withhold the employee half and send it to the state each quarter. Premiums stop at the federal Social Security wage base. State law caps the rate at 1.2%, and the program director sets it each year. Check the rate every January.
When does a Colorado business need workers’ compensation?
From the first employee. Every employer with workers must carry coverage, whether those workers are part-time or family members, and no small-business exemption applies. Policies come from private insurers, from Pinnacol Assurance, which must offer coverage to any Colorado employer, or from approved self-insurance. Plenty of small companies buy it through a co-employer’s master policy. Sole proprietors and partners are generally not counted as employees for their own coverage. Coverage gaps can bring fines and personal liability for injury costs.
What is the Denver Occupational Privilege Tax?
It is a monthly city tax on people who earn at least $500 in a month for work done in Denver. Employees pay $5.75 a month through payroll withholding, and employers pay $4.00 per taxable employee each month. Businesses in Denver owe the $4.00 even with no taxable employees. Glendale, Greenwood Village, and Sheridan levy similar taxes, while Aurora ended its version on January 1, 2025. Each city sets its own threshold and amount.
How much does a PEO cost in Colorado?
Pricing is usually a monthly charge per worker or a percentage of gross wages. Team size, industry, and benefit choices drive the number. A few publish rates, such as per-employee charges per pay run. Expect separate invoices for insurance and the retirement plan. You still pay for jobless insurance, the employer’s paid leave share, and city head taxes, so total a full year per worker. Ask for a sample invoice before signing.
What is the minimum wage in Colorado for 2026?
The state minimum wage is $15.16 an hour from January 1, 2026, with a $12.14 cash wage for tipped employees. It rises to $15.71 on January 1, 2027. Denver sets $19.29, Edgewater $18.17, and the City of Boulder and unincorporated Boulder County $16.82. Time-and-a-half kicks in after 40 hours in a week. It is also due after 12 hours in a day or 12 consecutive hours, whichever pays more. Check local rates each January, since they change with inflation.
Helen is Anywherer’s Market Analyst & Content Researcher, with extensive experience in analyzing global employment markets and HR technology trends. She is skilled at turning complex market data into clear, well-researched insights that inform every piece of content. With a strong grasp of the EOR, PEO, and international hiring space, Helen plays a key role in keeping Anywherer’s research accurate, up to date, and genuinely useful for readers.
