Updated January 19, 2022
This article will cover:
- What information OnPay needs from you
- What state and local taxes and filings OnPay handles for Colorado employers
- Where you can find the tax account numbers needed
- How to authorize OnPay as a Third Party Administrator in Colorado
- Paying employees in other states?
Why is this important?
For employers who pay employees in Colorado, use this guide to learn what’s required to start running payroll while keeping compliant with state payroll tax regulations. Without this information, OnPay will be unable to file or deposit any Colorado tax payments for your company. Any penalties and interest that accrue from missed tax payments will be your company’s responsibility.
What information OnPay needs from you
Use this checklist to make sure you’ve covered everything required to set up your account as a Colorado employer so OnPay can accurately file and pay taxes on your behalf:
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To do: |
What is this? |
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Make sure your business is registered with the Colorado Department of Revenue |
Allows your business to file and pay taxes in Colorado |
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Make sure your business is registered with the Colorado Department of Labor |
Allows your business to pay required unemployment insurance in Colorado |
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Provide OnPay with your Colorado State Tax ID |
The 7-digit employer identification number issued by the Colorado Department of Revenue |
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Provide OnPay with your Colorado Unemployment ID |
A 9-digit number unique to your account with the Colorado Department of Labor |
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Provide OnPay with your Colorado Unemployment (SUI) Rate |
A tax rate you receive annually from the Colorado Department of Labor |
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Provide OnPay with your Colorado Occupational Privilege Tax Rate |
Some Colorado cities impose an Occupational Privilege Tax (OPT) on individuals who work within the city limits |
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Authorize OnPay as a Third Party Administrator |
For OnPay to be able to file and pay taxes on behalf of your business, you will need to submit a Power of Attorney form. |
What state and local taxes and filings OnPay handles for Colorado employers
OnPay handles the filing of all state and local taxes for businesses in Colorado, including:
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Type of Tax |
Form ID |
Form Name |
Frequency |
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Withholding |
DR 1094 |
Wage Withholding Coupon |
Quarterly |
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DR 1093 |
Annual Transmittal of W-2s |
Annual |
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DR 1106 |
Annual Transmittal of 1099's |
Annual |
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Unemployment |
UITR-1 |
Colorado Quarterly Wage and UI Report |
Quarterly |
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Other |
New Hire Report (Filing) |
Colorado Report of New Hires |
As required |
Where you can find the tax account numbers needed
If you are an existing employer who has previously run payroll in Colorado, you likely already have the IDs and online accounts needed for OnPay to process your tax filings.
If you are a new employer in Colorado, you will need to register your business with the Colorado Department of Revenue and Colorado Department of Labor. This must be completed for OnPay to be able to file and pay your Colorado taxe
Withholding Tax Account Number
Existing Colorado Employer:
You can find your Withholding Tax Account Number on your previous Colorado quarterly returns (form DR 1094). If you cannot locate this document or account number, please call the Colorado Department of Revenue at (303) 238-7378 to request it.
New Colorado Employer: Register with the Colorado Department of Revenue
- Register with the Colorado Department of Revenue by registering with MyBiz Colorado
- This will also register you with the Department of Labor for unemployment insurance
- Fill out the questionnaire and register your business
- After completing your submission, you can download a Temporary copy of your Colorado License(s) from your dashboard.
Unemployment Account Number and Tax Rate
Existing Colorado Employer:
- You can find your Unemployment Account Number on on your most recent Notice of Employer's Tax Rate (Form UITR-7)
- Your Unemployment Tax Rate can be found in Box 7 or 8 of the Tax Rate Notice
- Your Colorado Surcharge can be found in box 9 of the Tax Rate Notice. This number will need to be added to the Unemployment rate when entered in OnPay.
New Colorado Employer: Register with the Colorado Department of Labor
- Register with the Colorado Department of Revenue by registering with MyBiz Colorado
- This will also register you with the Department of Labor for unemployment insurance
- Fill out the questionnaire and register your business
- After completing your submission, you can download a Temporary copy of your Colorado License(s) from your dashboard
- New employers typically pay 1.7% with a wage base of $17,000.
Colorado Occupational Privilege Taxes
All Colorado Employers:
Some cities in Colorado charge and Occupational Privilege Tax. You may be liable for Occupational Privilege Tax if your employees work in any of these cities:
TPA access and Power of Attorney
OnPay works with government entities on your behalf, reporting new hires to state labor departments, calculating tax rates, and filing financial reports. To do this effectively, you will need to add OnPay as your third party agent with the Colorado Department of Revenue. Here's how:
- Sign in to your Revenue Online account.
- Go to Settings and select Grant Third Party Access.
- Enter OnPay's username as: OnPayTax
- Set Access Level to: ALL ACCESS
- Set Access Start Date to: The beginning of the first quarter you are processing payroll with OnPay. (ex: 1/1/2022, 4/1/2022, 7/1/2022, or 10/1/2022)
- Select to "Provide access to your Withholding account"
Power of Attorney
You will also need to grant OnPay power of attorney, so we've prepared the POA forms with instructions.
Paying employees in other states?
If you operate in multiple states or just have employees working from home across a state line, it's important to file the correct state forms for those workers. See what forms we file in the states where you pay employees.
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