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.
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.
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.
Starting a business in Pennsylvania is an exciting venture, and laying the groundwork correctly from the get-go is essential. One aspect of this foundation is ensuring your business complies with state licensing requirements.
Whether you’re launching a tech startup in Pittsburgh or opening a boutique in Philadelphia, understanding and obtaining the correct PA business license is a cornerstone of your business legitimacy and operations.
The good news is that Pennsylvania’s process for acquiring business licenses is generally straightforward.
Managing compliance for state and local reporting can feel like a never-ending task, even with the help of a professional employer organization (PEO). For example, client reporting states can add an extra layer of confusion to the payroll and reporting process.
When you’re on a PEO, there are two types of payroll reporting: client reporting states and PEO reporting states. In client reporting states, you are still responsible for managing your payroll accounts under your own employee identification number (EIN).
Colorado has recently implemented several employment laws that may have a major impact on your organization. Here’s what Colorado employers need to know about state compliance in 2025.
How Has Colorado’s Minimum Wage Changed in 2025? Colorado’s minimum wage increases annually based on inflation. Additionally, cities within Colorado can set their own local standards, so long as they’re no less than the statewide minimum.
It’s important for Colorado employers with multiple offices or locations throughout the state to make sure their starting wages are locally compliant.
Gabrielle Sinacola |Feb 3, 2025
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