Denver, CO Payroll Tax Registration

Mar 28, 2025

If you are an employer in Denver, Colorado, it is important to be aware of the local payroll tax requirements for businesses operating in the city. These requirements may include registering your business with the city and withholding a certain percentage of your employees' wages for local taxes.

How to Register for Payroll Tax in Denver

Denver Occupational Privilege Tax Setup for LLP, LLC, Corporation

You must register for the city's Occupational Privilege Tax (OPT) -- a "head tax" imposed on Denver employers and employees -- if you have employees in Denver, Colorado. Employers must pay $4 per month for each taxable employee (if they earn at least $500 monthly) and withhold $5.75 per month from each taxable employee. Note: 501(c)(3) nonprofit organizations that may qualify for exemption from the business portion of OPT will still be required to register in order to pay and report the $5.75 per month Employee OPT from each employee that receives compensation of $500 or more per month.

  1. Confirm OPT Filing Frequency with Payroll Provider

    Employers with ten or fewer employees may file Denver OPT quarterly instead of monthly. However, many payroll providers only support the monthly filing frequency. Therefore, confirm your filing frequency with your payroll provider during account registration.

  2. Register as a New Business in Denver eBiz Center

    Complete the new business registration in Denver eBiz Center to register for an Occupational Privilege Tax account. You will need to create a Denver eBiz Center username during registration. Once your registration is processed, you will be assigned a 12-digit Occupational Privilege Tax account number, e.g., 123456-123456. Your Denver Taxpayer ID is the first six digits before the dash. Note: It may take up to 5 days to process your registration.

Documents and Resources

Accounts Logins

Denver, CO Payroll Registration Agencies

Use Mosey to register for payroll accounts in Denver.

Register for payroll taxes with the state of Colorado

More from the blog

Learn how to keep your business compliant in all 50 states across payroll, HR, Secretary of State, and tax.

PEO Pros and Cons: Understanding PEO Advantages and Risks

A professional employer organization (PEO) can be a valuable partner in helping with HR, payroll, and tax compliance. PEOs offer businesses — especially small ones — a co-employment model where they handle key administrative tasks, allowing you to focus on growth. But is a PEO right for every business? The short answer is no. Let’s talk about the pros, cons, and risks of a PEO to help you understand what partnering with one really means.

Gabrielle Sinacola | Nov 13, 2024

What Is the New DOL Overtime Rule for 2024?

Overtime pay is a fundamental element of labor law, ensuring that employees are fairly compensated when they work beyond their standard 40 hours a week. It’s designed to protect workers from overwork and to encourage employers to hire additional staff if needed rather than relying on excessive hours from existing employees. Starting in 2024, the Department of Labor (DOL) is implementing significant updates to the overtime rule, potentially impacting millions of employees and the businesses that employ them.

Gabrielle Sinacola | Jul 5, 2024

How to Close Your State Agency Account

Welcome to the world where business agility meets compliance. As your business evolves, you may find yourself in a situation where some state agency accounts are no longer necessary. This could be due to various factors, including the fact that you no longer have active employees in certain states. We’re discussing the hows and whys of closing state agency accounts, ensuring your business stays as nimble and compliant as ever.

Gabrielle Sinacola | Mar 13, 2024

Ready to get started?

Schedule a free consultation to see how Mosey transforms business compliance.