Colorado payroll tax and registration guide

Updated May 24, 2024

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?

The following information requests and registration instructions are required before you can use a payroll provider to run payroll. This is in compliance with state payroll tax regulations. Without this information, OnPay is unable to file or deposit any tax payments for your company, and will not be responsible for any resulting penalties or interest. Note: If this isn't the only state where you have employees, there will be a separate guide like this one for each state where you hire and pay workers. 

Let Middesk handle your state tax registrations (and more)

If you'd like help, our partner Middesk makes hiring employees and staying compliant with every state agency simple and easy.

• Register with every state agency to get the tax IDs you need within minutes
• Stay compliant as you grow by managing agency mail and notices in your dashboard
• Manage your government accounts in one place on Middesk's intuitive platform
• Foreign Qualify with the Secretary of State to create payroll tax accounts 

Learn more about Middesk→

What information OnPay needs from you

What state and local taxes and filings OnPay handles for Colorado employers

 

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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)

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)

Effective January 1, 2023, 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

 

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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