Colorado payroll tax and registration guide

Why is this important?

To maintain compliance with state payroll tax regulations, you must provide the following information before you can use OnPay to run payroll:

• State Employer Identification Number and state/local tax IDs
• Tax rates - State tax offices set these rates based on the type, age, and size of your business
• TPA and power of attorney - Most tax offices require this before we can submit quarterly wage reports and deposits on your behalf

This information must be provided and maintained by you in order for OnPay to accurately file and deposit tax payments for your company. OnPay is not responsible for any penalties or interest that incur due to missing or incorrect company tax information.

Each state has its own requirements, so if you pay employees in more than one state, you’ll find separate tax guides for each state.

See what information you need to provide OnPay, and what taxes and filings OnPay handles for Colorado Employers.

• 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:
  
  

  All Colorado employers	What is this?
  Make sure your business is registered with the Colorado Department of Revenue	Allows your business to file and pay taxes in Colorado More info >
  Make sure your business is registered with the Colorado Department of Labor	Allows your business to pay required unemployment insurance in Colorado More info >
  Provide OnPay with your Colorado Withholding Tax Account Number and deposit schedule	The 7-digit employer identification number issued by the Colorado Department of Revenue More info >
  Provide OnPay with a Colorado EFT Credit Number	This is typically the same as your Withholding Tax Account Number More info >
  Provide OnPay with your Colorado Unemployment ID	A 9-digit number unique to your account with the Colorado Department of Labor More info >
  Provide OnPay with your Colorado Unemployment (SUI) Ratee	A tax rate you receive annually from the Colorado Department of Labor More info >
  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 More info >

• Taxes and filings OnPay handles for Colorado Employers

  Withholding Tax

  DR 1094	Wage Withholding Coupon	- Quarterly
  DR 1093	Annual Transmittal of W-2s	- Annual
  DR 1106	Annual Transmittal of 1099's	- Annual

  Unemployment Insurance Tax

  UITR-1	Colorado Quarterly Wage and UI Report	- Quarterly
  New Hire Report	Colorado Report of New Hires	- As required

  Family and Medical Leave Insurance

  UITR-1

  Colorado Quarterly Wage and UI Report

  - Quarterly

  Colorado Occupational Privilege Tax

  UITR-1

  Colorado Quarterly Wage and UI Report

  - Quarterly

   

Where you can find the tax account numbers you need

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 taxes.

Withholding Tax Account and EFT Numbers

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.
• You can use your Withholding Tax Account Number as your EFT Credit Number

New Colorado Employer: Register with the Colorado Department of Revenue 

• Register with the Colorado Department of Revenue by registering with MyBiz Colorado
• 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

• This will also register you with the Department of Labor for UI (unemployment insurance), as well as for FAMLI (Family and Medical Leave Insurance)

• All Colorado Employers: Enter an EFT Credit Number into OnPay

  OnPay will be unable to make ACH Credit payments on your behalf until you've entered an EFT Number in Payroll Taxes for Colorado. If you do not have an EFT Credit Number, you can enter your DOR Account Number issued to you by the Colorado Department of Revenue.

  EFT = DOR Account Number

  Enter one of these IDs in OnPay using the following steps:

  1. Log into your Company Dashboard
  2. In the left menu, go to Company
  3. Go to Payroll Taxes, then Colorado 
  4. Enter either your DOR Account Number or your EFT Credit Number in the field marked "EFT Credit Number"
  5. If using your DOR Account Number as your EFT Credit Number, you still need to enter your DOR Account Number in the specified field

Unemployment Account Number and Tax Rate

Existing Colorado Employer: 

• You can find your Unemployment Account Number 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 $20,400

Colorado Family and Medical Leave Insurance Program (FAMLI)

The Family and Medical Leave Insurance (FAMLI) program allows Colorado workers to take paid time off for important life events that impact the health and safety of their family, or themselves. This paid leave is jointly-funded by contributions from employer and employee taxes, with some exemptions for the employer portions only.

• All company employees pay into this program through withheld taxes, regardless of company size or headcount 
• Employers with 9 or fewer employees are only exempt from the employer contribution, and must still withhold and deposit the employee portion of this tax, but they can choose to pick up either a portion of, or all of employee FAMLI contributions, transferring the tax liability for the "Portion of Employee Contribution Covered" to the employer

IMPORTANT: Enter your FAMLI ID into OnPay
Your PFML ID must be entered into OnPay in order for Colorado FAMLI taxes to be withheld, drafted, and paid. Register for a FAMLI Account online and enter your FAMLI ID into OnPay. Full instructions→

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:

• Aurora
• Denver
• Glendale
• Greenwood Village
• Sheridan

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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