California vs Colorado: paid leave cost compared, 2026
On 25 employees and $2,000,000 of annual payroll, California costs $26,000 in total premium and Colorado costs $17,600 — a difference of $8,400 a year. The employer’s own exposure differs by more, because the two states split the premium differently.
California
$26,000
total premium on 25 staff and $2,000,000 payroll
- Employer pays
- $0
- Employees pay
- $26,000
- Rate applied
- 1.3%
Colorado
$17,600
total premium on 25 staff and $2,000,000 payroll
- Employer pays
- $8,800
- Employees pay
- $8,800
- Rate applied
- 0.88%
Estimates only. Confirm current rates with your state agency before filing or budgeting.
Rules side by side
| California | Colorado | |
|---|---|---|
| Program | State Disability Insurance / Paid Family Leave | Family and Medical Leave Insurance |
| Total contribution rate | 1.3% | 0.88% |
| Employer share | 0% | 50% |
| Employee share | 100% | 50% |
| Wage cap per employee | None | $184,500 |
| Small-employer relief | None | Relief under 10 employees → 0.44% |
| Private plan allowed | Yes | Yes |
| Maximum weekly benefit | $1,765 | $1,448 |
What actually differs
- Who funds it. California is entirely employee-funded, so the employer's cost is administrative only. Colorado splits it 50% employer to 50% employee. Comparing the headline rates alone will mislead you whenever the splits differ this much.
- Where the cost stops. California has no wage cap, so a high-earning team keeps accruing premium all year. Colorado stops at $184,500 per employee. The gap widens as average wages rise.
- Small-employer treatment. California offers none — the full rate applies from your first employee. Colorado reduces the rate to 0.44% for employers with fewer than 10 employees, counted nationwide. If you are near either threshold, check which headcount basis applies before assuming you qualify.
Last verified August 19, 2026Source: Employment Development Department (EDD)
Last verified August 18, 2026Source: Colorado Department of Labor and Employment
Employing in both?
Add California and Colorado to the multi-state calculator and see the combined figure, with each state’s cap and small-employer rule applied separately.
Calculate both together