Family Caregiver Taxes and Employment in Colorado

When you employ a family member as your household caregiver in Colorado, your caregiver's age and/or their relationship to you may mean certain federal and Colorado taxes apply a little differently. We've broken down these differences below — along with the state-specific employment requirements you'll want to know — so you always know what's going on with your employee's payroll.

Tax exemptions

Requirements and rates vary by state and are subject to change. The information below is current as of 2026.

Federal taxes

FICA (Social Security and Medicare) and FUTA (Federal Unemployment Tax) may apply a little differently based on your caregiver's age and family relationship to you.

Caregiver relationship	FICA (Social Security and Medicare)	FUTA (Federal Unemployment)
A minor under 18 who isn't your child	Exempt (until age 18)	Applies
Your child, currently under 21	Exempt (until age 21)	Exempt (until age 21)
Your spouse	Exempt	Exempt
Your parent	Usually exempt (see parent-childcare exception)	Exempt

When your caregiver passes one of the age thresholds, we'll automatically update how their wages are taxed based on the information in your account, and email you in advance. For the full federal breakdown, see How federal tax exemptions work for family caregivers.

Colorado state taxes

Colorado has a few rules that don't follow the federal pattern. Two key state-level employer programs affect family caregivers: State Unemployment Insurance (SUI) and the Family and Medical Leave Insurance program (FAMLI). These two programs treat family caregivers differently.

Caregiver relationship	Colorado SUI	Colorado FAMLI
A minor under 18 who isn't your child	Applies	Applies
Your child, currently under 21	Exempt (until age 21)	Applies
Your spouse	Exempt	Applies
Your parent	Applies — see note below	Applies

Colorado SUI applies to parent caregivers. Unlike the federal rule, Colorado doesn't exempt parent caregivers from State Unemployment Insurance. We'll calculate and remit this on your behalf.

Colorado FAMLI applies to all caregivers. FAMLI premiums (0.45% employee share in 2026, per CRS 8-13.3) will appear as deductions on your caregiver's paystub regardless of family relationship. Household employers are generally required to register with FAMLI — confirm current requirements at famli.colorado.gov.

Colorado state income tax withholding generally applies to caregivers regardless of family relationship (current as of 2026; rules subject to change).

Employment requirements

Quick overview

For spouse and parent caregivers, Colorado generally applies standard household employment rules. Most special handling in Colorado is driven by employee age (minors), not family relationship. FAMLI applies to all caregivers regardless of family relationship.

Requirements by relationship

Where you see "Standard rules" in the table below, family caregivers follow the same rules as any other household employee — no family-specific carve-out applies.

Requirement	Spouse	Parent	Your child <18	Your child <21	Non-family minor <18
Minimum wage (rates current as of 2026; CO minimum wage adjusts annually)	Standard rules	Standard rules	Non-emancipated minor rate: $12.89/hr (85% of $15.16)	Standard rules ($15.16/hr)	Non-emancipated minor rate: $12.89/hr
Overtime	Standard rules	Standard rules	16–17 year olds: max 9 hours/day	Standard rules	16–17 year olds: max 9 hours/day
Workers' comp	Standard rules	Standard rules	Standard rules	Standard rules	Standard rules
Colorado FAMLI	Owes premium	Owes premium	Owes premium	Owes premium	Owes premium
Paid sick time	Standard rules	Standard rules	Minors entitled to paid sick leave	Standard rules	Minors entitled to paid sick leave
Meal and rest breaks	Applies if employing spouse	Standard rules	Standard rules	Standard rules	Minors: 30-minute uninterrupted meal break
PTO accrual	Standard rules	Standard rules	Minors accrue 1 hr per 30 hrs worked	Standard rules	Minors accrue 1 hr per 30 hrs worked
Colorado SecureSavings	Standard rules	Standard rules	Generally exempt (hiring own child <18)	Generally exempt (hiring own child <21)	Program is for workers 18+
Termination, posting, recordkeeping	Standard rules	Standard rules	Standard rules	Standard rules	Standard rules

Important notes

Colorado has a separate minor wage rate (85% of the state minimum) that applies to non-emancipated minors under 18, including a parent's child.

Colorado FAMLI applies to all employees including family caregivers. Premium contributions are required regardless of family relationship.

Colorado SecureSavings (state-facilitated retirement program) is only for workers 18+. Children employed by parents are typically exempt from auto-enrollment.

Disclaimer: This information is provided for general educational purposes and should not be considered tax, legal, financial, or human resources advice.