Updated September 8, 2023
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
- 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:
✔ |
To do: |
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 |
|
Make sure your business is registered with the Colorado Department of Labor |
Allows your business to pay required unemployment insurance in Colorado |
|
Provide OnPay with your Colorado State Tax ID and deposit schedule |
The 7-digit employer identification number issued by the Colorado Department of Revenue |
|
Provide OnPay with your Colorado EFT Credit Number |
The 10-digit number assigned to you by the Colorado Department of Revenue |
|
Provide OnPay with your Colorado Unemployment ID |
A 9-digit number unique to your account with the Colorado Department of Labor |
|
Provide OnPay with your Colorado Unemployment (SUI) Rate |
A tax rate you receive annually from the Colorado Department of Labor |
|
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 |
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:
Type of Tax |
Form ID |
Form Name |
Frequency |
Withholding |
DR 1094 |
Wage Withholding Coupon |
Quarterly |
DR 1093 |
Annual Transmittal of W-2s |
Annual |
|
DR 1106 |
Annual Transmittal of 1099's |
Annual |
|
Unemployment |
UITR-1 |
Colorado Quarterly Wage and UI Report |
Quarterly |
Family and Medical Leave Insurance |
FAMLI |
Colorado Paid Family Medical Leave Insurance Wage Report |
Quarterly |
Colorado Occupational Privilege Tax |
COPT |
Colorado Occupational Privilege Tax Return |
Quarterly |
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 taxes.
EFT Number Required
All Colorado Employers:
- Log-in to your Revenue Online account
- Click More...
- Under “Additional Actions”, click Manage My EFT
- Complete the steps detailed in the Colorado Electronic Funds Transfer setup guide, using the below information as reference:
- Step 4: Select "Request a new EFT Number"
- Step 5: Select "ACH Credit"
-
Step 6: Under "Contact Information", check the box for "This EFT is used by a third party", and enter the following information:
- Type: Business
- Party’s Name: OnPay Tax Disbursement LLC
- Phone: 877-328-6505
- Email: tax@onpay.com
- Step 7: Select "Wage Withholding"
- Follow the steps in the EFT guide to confirm your information, and then return to the Revenue Online homepage
- Click View My EFT Account Numbers
- Under "EFT Account Summary", look for an EFT Number with a checked box under Credit, with the email: tax@onpay.com
- You must enter this EFT Number into OnPay to enable ACH Credit payments to be made on your behalf using the following steps
IMPORTANT: Enter your EFT number in OnPay
All Colorado Employers: Enter EFT Credit Number into OnPay
OnPay will be unable to make ACH Credit payments on your behalf until you've entered your EFT Number in OnPay using the following steps:
-
- Log into your Company Dashboard
- In the left menu, go to Company
- Go to Payroll Taxes, then Colorado
- Enter your EFT Credit Number in the specified field
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 find your EFT Credit Number by logging into Revenue Online
- Upon logging in, click More
- Under "Additional Actions", select View My EFT Account Numbers
-
Look for an EFT Number with its "Credit" box checked, and click Print
- The Contact Information should list "OnPay Tax Disbursement LLC"
- If it doesn’t list "OnPay Tax Disbursement LLC" please see the EFT instructions for new Colorado employers to add a new 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)
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
All Colorado Employers:
- Register for a FAMLI Account online to receive a FAMLI ID
- Enter the FAMLI ID into the Colorado Payroll Taxes of your OnPay account
- To do this, log into OnPay
- Go to Company
- Click Payroll Taxes
- Click Colorado
- Enter the FAMLI ID in the appropriate field
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:
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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