Why do I owe city taxes?
Some cities in Colorado charge an Occupational Privilege Tax based on the number of employees the company has each month. This tax can even apply to non-paid employees, like in the City of Denver. You may be liable for Occupational Privilege Tax if your employees work in any of these cities:
Aurora Occupational Privilege Tax
Effective January 1, 2025, the city of Aurora no longer imposes an Occupational Privilege Tax (OPT) on individuals who work within the city limits.
Denver Occupational Privilege Tax
In Denver, any employee who earns more than $499 per month in a given month is considered taxable for that month, at a rate of $5.75 per month , for the privilege to perform work in the county . Additionally, their employer must pay an Occupational Privilege Tax of $4.00 per employee per month*.
*Employers must also pay the same monthly Occupational Privilege Tax for any unpaid employees in the company who work in the City of Denver.
More information on Denver Occupational Tax.
What does OnPay need?
- Email your Denver Tax ID to hello@onpay.com
- Update your Non-Paid Employees Count before your last payroll run of the reporting period. Here's how it works↓
How to update your Non-Paid Employees Count before your last payroll run of the reporting period
Go to Company, then Payroll Taxes, to update your non-paid employee count, then click Save.
Glendale Occupational Privilege Tax
Glendale Occupational Privilege Tax is a monthly tax paid by all employees who work within the City of Glendale and earn more than $750 during a calendar month. The $5 monthly fee for these employees is matched by the employer, for a total tax of $10. Self-employed individuals, owners, partners, and officers, who are not paid a salary or commission, are subject to only the employer portion of the tax.
What does OnPay need?
- Glendale Tax ID
How do I register?
Register your business on the Glendale Colorado Tax & Licensing page.
Greenwood Village Occupational Privilege Tax
This tax consists of two portions:
- The employee portion - $2/month
- The employer portion - $2/month
Both apply when $250 or more is earned in a calendar month. Owners, partners, and officers who do not earn a minimum of $250 a month are only subject to the employer portion.
More information on Greenwood Village Occupational Tax.
What does OnPay need?
- Greenwood Village Tax ID
Sheridan Occupational Privilege Tax
A $3 per month occupational privilege tax is due from each employee through payroll withholding. A $3 per month match is due from the employer for each employee. The employer is responsible for remitting both the employee and employer portions of the tax to the City of Sheridan.
More information on Sheridan Occupational Tax.
What does OnPay need?
- Sheridan Tax ID
How do I register?
Please call Sheridan at 303-762-2200 to complete the registration.
How do I enter my local rate in OnPay?
Go to Company, then Payroll Taxes, and select Colorado.
Scroll down to "Local Taxes". Depending on where your employees live, you may see multiple cities in this section.
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