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Colorado vs Wisconsin: Business Hiring Cost Comparison (2026)

A $60K employee costs $65,956 in Colorado and $65,732 in Wisconsin. Wisconsin saves $224/year per hire.

No signup No tracking Last updated March 2026
Data current as of March 2026 Sources: IRS Publication 15, SSA COLA notices, State Workforce Agencies

Wisconsin is $224 per year cheaper than Colorado for a $60,000 employee in 2026, with total employer costs of $65,732 vs $65,956 including all mandatory payroll taxes.

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$60,000
$30K $200K

At a $60,000 salary

Wisconsin saves $224/employee/year

$65,956 in Colorado vs $65,732 in Wisconsin

Colorado

$65,956

1.1x salary

Wisconsin

$65,732

1.1x salary

Shareable Insights

Colorado adds $270 in mandatory programs

Disability insurance and paid family leave that Wisconsin doesn't require.

Cost Breakdown Comparison

Based on $60,000 annual salary

Cost Component CO WI Diff
Base Salary $60,000 $60,000
Social Security (6.2%) $3,720 $3,720
Medicare (1.45%) $870 $870
FUTA (0.6%) $42 $42
SUTA (State Unemployment) $520 $392 +$128
Workers' Compensation $534 $708 -$174
State-Mandated Insurance $270 $0 +$270
Total Employer Cost $65,956 $65,732 +$224

Tax Rate Comparison

Rate Colorado Wisconsin
SUTA Rate Range 0.64% – 5.11% 0.0% – 9.0%
SUTA Typical Rate 1.7% 2.8%
SUTA Wage Base $30,600 $14,000
Workers' Comp Rate 0.89% 1.18%
State Income Tax Yes Yes
Paid Family Leave 0.45% Not required

What This Means for Employers

For a business hiring at a $60,000 salary, choosing Wisconsin over Colorado saves $224 per employee per year in employer-side payroll costs alone. For a team of 10, that's $2,242 annually — enough to fund an additional hire or significantly offset operating costs.

The biggest difference comes from workers' compensation rates — Colorado charges 0.89% of payroll vs Wisconsin's 1.18%. Workers' comp rates vary by industry within each state, so high-risk industries (construction, manufacturing) will see larger absolute dollar differences. Federal taxes — Social Security (6.2%), Medicare (1.45%), and FUTA (0.6%) — are identical in both states and account for the majority of employer tax burden.

A notable difference between these states is mandatory benefit programs. Colorado requires employer contributions to paid family leave programs that Wisconsin does not mandate — adding $270 per employee annually.

These numbers reflect employer-side costs only and don't include benefits, overhead, or the employee's own tax burden. Use the interactive Employee Cost Calculator to model different salary levels and benefits packages.

Choosing Between Colorado and Wisconsin?

Cost alone favors Wisconsin: At a $60K salary, you save $224 per employee — a real number that compounds across a growing team. At 20 employees, that's $4,484/year before factoring in any raises.

When Colorado might still make sense: If your business depends on talent concentrated in Colorado — tech workers, finance professionals, specialized trades — the labor market access may outweigh the payroll cost premium. Remote-friendly roles, however, make the $224/employee savings a strong argument for Wisconsin-based registration.

What this comparison doesn't capture: State income tax (employee side) affects your offer competitiveness — employees in high-tax states need higher gross pay to net the same take-home. Colorado has state income tax; Wisconsin has state income tax. This affects what salary you need to offer to attract equivalent candidates.

State Employment Profiles

Colorado

Colorado's FAMLI paid family leave program (employer pays 0.45%) launched in 2024 and adds to a mid-range employer tax profile, offset by a competitive $30,600 SUTA wage base.

Top Industries

aerospace & defense, outdoor recreation, bioscience & healthcare

Employer Note

Denver's growing tech sector competes with California and Texas for talent; employers often supplement base wages with equity or remote-work flexibility to compete.

Wisconsin

Wisconsin has a moderate SUTA wage base and competitive workers' compensation costs, balancing its strong manufacturing base with a historically union-influenced labor market.

Top Industries

paper & printing, dairy processing, precision manufacturing & medical devices

Employer Note

Wisconsin's 2011 Act 10 significantly reduced public-sector union influence; the resulting wage gap between public and private sectors has shifted compensation benchmarks across the state.

Employer Environment in Each State

Key factors that shape employer costs beyond the numbers above

Colorado Below-average employer costs
  • State income tax applies — factor into total compensation packages
  • SUTA rate 1.7% (wage base $30,600) — in line with national average
  • Competitive workers' comp rate (0.89%) — below-average, favorable for labor-intensive businesses
  • State paid family leave program (0.45% employer share) — additional mandatory payroll cost
Wisconsin Moderate employer costs
  • State income tax applies — factor into total compensation packages
  • Above-average SUTA rate (2.8% on $14,000 wage base) — one of the higher state unemployment rates nationally
  • Workers' comp rate 1.18% — near national average, varies by industry classification

Hiring Strategy Takeaway

The $224 per-employee cost gap at $60K salary is primarily driven by state-mandated insurance programs. For a growing business, this difference compounds quickly — a 10-person team in Wisconsin costs $2,242 less annually than the same team in Colorado, before accounting for benefits, overhead, or salary-level differences.

Cost Comparison at Different Salary Levels

How the gap changes from $30K to $150K

Salary CO Total WI Total Difference
$30,000 $33,249 $33,083 +$166
$40,000 $44,158 $43,966 +$192
$50,000 $55,057 $54,849 +$208
$60,000 $65,956 $65,732 +$224
$75,000 $82,305 $82,057 +$248
$100,000 $109,552 $109,264 +$288
$125,000 $136,800 $136,472 +$328
$150,000 $164,047 $163,679 +$368

Click any amount to see the full cost breakdown for that salary and state. Amounts shown from the perspective of CO.

What About Startup Costs?

Hiring is one piece. See what it costs to actually open in these states.

Get notified when hiring costs change in these states

We track SUTA rates, workers' comp, and payroll taxes across all 50 states. Free updates.

Estimates only. These results are based on publicly available data and standard formulas. Actual costs may vary based on your specific circumstances. This calculator does not constitute financial, tax, or legal advice. Consult a qualified professional for advice on your situation.

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