Colorado

Aaliyah Spell

May 04, 2023 18:18

Before you can pay employees, make sure you've registered for the applicable work and live in state. This can sometimes take several weeks—the sooner you start the process, the sooner you'll have the tax account information required to pay them.

Note, CertiPay Online can put your account in an applied for status. This may cause additional monthly fees as some states do not accept returns/tax liability deposits for accounts that are in an applied for status.

Colorado Tax Agencies

State tax withholding - Colorado Department of Revenue
Unemployment/Family and Medical Leave - Colorado Department of Labor and Employment
Local Colorado Taxes - Varies

Tax Registration Requirements

If you're starting a new business in Colorado or have a new employee in Colorado, you'll need to register with the Colorado Secretary of State before registering with other agencies. You will need the below information at the time of registering:

Federal Employer Identification Number (FEIN).
A designated registered agent.

Your company becomes liable for state unemployment insurance tax once the company has:

Paid $1500 in wages during a calendar quarter or;
Had at least one Colorado-employee working for any part of the week, for 20 or more different weeks during a calendar year.

How to Register for State Withholding & State Unemployment

1. Apply for both tax types online using MyBizColorado.

This site will provide registration for:
- Unemployment Insurance Account Number
- Wage Withholding Account Number

2. Click Start when you're ready to begin the registration. There will be several questions regarding the company. It is important to have all company information ready (FEIN, First check date for the employee in CO, CO secretary of state confirmation, etc)

3. Register and create an account with My FAMLI+ Employer

- CertiPay Online Help Guide on CO FAMLI - Colorado Paid Family and Medical Leave Insurance Program

Once online registration is complete, you'll receive instant confirmation on MyBizColorado site as well as a letter through the mail.

Colorado Paid Family and Medical Leave Insurance (FAMLI)—effective Jan 1, 2023

The Colorado Department of Unemployment has a new Paid Family & Medical Leave tax that will affect your company’s payroll as of January 1, 2023 or whenever a new employee is added to payroll.

Here is a step-by-step video on how to register for an account OR steps below:

Register for a FAMLI account with My FAMLI+ Employer.
Click Log into My FAMLI+ Employer.
- You'll be redirected to Welcome to the My FAMLI+ Employer screen.
Next to "Are you a new user?", click Create account.
You will be directed to a login screen, scroll down and click the Create an account button.
- Add your details, and we always recommend opting in to 2-factor authentication.
- Once you've created the account, you'll be brought to the CO My+ FAMLI page.
From the My+ FAMLI page, click Add or link an organization.
- Answer No when asked "Are you a third party administer registering on behalf of this organization?"
  - When asked "What organization type best describes the business you are registering", do not select "Third-Party Administer" or "Transmitter".
- Search your company's FEIN—if you aren't already registered, proceed to the next step.
Fill out your company details to create a My FAMLI+ account—use your company's FEIN to register the business and link the two accounts.
After you've registered for both accounts, you'll need to authorize CertiPay to be your third-party agent.

When you register, you'll receive your new 10-digit FAMLI account ID number directly in the MyFAMLI+ portal.

Local tax registration—Occupational Privilege Tax(es)

If you have employees working in one of the following locations, you or your employees may be liable for an Occupational Privilege Tax (OPT):

Aurora
Denver
Glendale
Greenwood Village
Sheridan

Scroll below to get registration information.

What is an Occupational Privilege Tax (OPT)?

This is a uniform tax that includes both an employee and employer tax.

Employees who make over a certain threshold amount per month are taxed per month—wage thresholds vary by agency.
Employers are taxed per month for each employee—the employer tax per employee applies even if you do not run payroll.

Some Colorado cities also require employers to pay OPT for business owners and officers who are not included on payroll.

Denver OPT registration

1.Register a new business here.

2. Scroll to the "Access & Registration" section and click Register a New Business.

3. If the agency required the company to file quarterly or annually, contact them at excisetax.research@denvergov.org to request that your filing frequency be changed to monthly.

You can learn more about how taxation for Denver OPT works here.

Aurora OPT registration

1. Register online here—registration time can take 10-14 days.

2. Scroll down to Registration section and select Complete a Business License Application

Sheridan OPT registration

1. Register your business with the city.

2.Select the MuniRevs link to create a user.

3.Contact the city directly to request that your deposit frequency be set to monthly by calling (303)762-2200.

Glendale OPT registration

1. Register your business with the city.

2.Contact the city directly to request that your deposit frequency be set to monthly by calling (303) 759-1513.

Greenwood Village OPT registration

1. Register your business online with the city.

2.Contact the city directly to request that your deposit frequency be set to monthly by calling (303) 486-8299.

Agency Websites and Contact Information

Colorado Department of Revenue (303) 238-7378
Colorado Department of Labor and Employment
- Unemployment taxes: (800) 480-8299
- Family and medical leave insurance: CDLE_FAMLI_info@state.co.us