Colorado payroll tax and registration guide

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: 

OnPay handles the filing of all state and local taxes for businesses in Colorado, including:

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:
    1. Type: Business
    2. Party’s Name: OnPay Tax Disbursement LLC
    3. Phone: 877-328-6505
    4. 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

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:

• Aurora
• Denver
• Glendale
• Greenwood Village
• Sheridan