Colorado Payroll Tax Registration

As an employer in Colorado, it is essential to understand the process of payroll tax registration to ensure compliance with state regulations. This registration process involves obtaining an Employer Identification Number (EIN) from the Internal Revenue Service (IRS) and registering with the Colorado Department of Revenue (DOR) for state-specific tax obligations.

How Colorado Payroll Registration Works

There are 3 payroll tax setup tasks you may need to complete in Colorado to get your new hire on payroll for the first time. You can follow the guide below to help you get registered directly with the Colorado agencies or use Mosey to do it.

Colorado Withholding Tax Setup

If you have employees in Colorado you are required to register with the Colorado Department of Revenue for Wage Withholding Tax. Note: When registering for withholding tax you will also have the opportunity to register for Unemployment Insurance at the same time.

1. Create MyBizColorado Account

   Create a MyBizColorado account if you haven't done so already. On MyBizColorado's login page, enter your email and a password then click "login." A system prompt will let you create an account using this email address. You can also create an account using social login. Note: Your MyBizColorado account can be used to register with multiple Colorado state agencies, track progress, and retrieve account numbers and temporary licenses upon approval.

2. Complete the Application for a Withholding Tax Account

   Log into MyBizColorado and complete the business filing wizard to register for a withholding tax account. Online registrations are typically processed by the system immediately, and your account numbers should show up in MyBizColorado on the same day. Note: MyBizColorado will assess your sales tax liability during the registration process.

Colorado Unemployment Insurance Setup

You are required to register for Unemployment Insurance with the Colorado Department of Labor & Employment if in the current or preceding calendar year you have: (a) At least $1,500 in quarterly gross payroll, or (b) Had one or more employees in 20 different weeks. Note: When registering for Unemployment Insurance you will also have the opportunity to register for withholding tax at the same time.

1. Create MyBizColorado Account, If Necessary

   Create a MyBizColorado account if you haven't done so already. On MyBizColorado's login page, enter your email and a password then click "login." A system prompt will let you create an account using this email address. You can also create an account using social login. Note: You can use your MyBizColorado account to register with multiple Colorado state agencies, track progress, and retrieve account numbers and temporary licenses upon approval.

2. Register for an Unemployment Insurance Tax Account

   Log into MyBizColorado and complete the business filing wizard to register for an Unemployment Insurance tax account. Online registrations are typically processed by the system immediately, and your account numbers should show up in MyBizColorado on the same day. Note: MyBizColorado will assess your sales tax liability during the registration process.

3. Register for a MyUI Employer+ Account

   Register an account on MyUI Employer+ by submitting the Employer Registration form. MyUI Employer+ will send a PIN to your mailing address to confirm your identity. You will also receive an email with a link you need to finish your registration when you get your PIN. Note: The email address entered when you first register in MyUI Employer+ will become the administrator of your business. Each business can only have one administrator and the administrator's email address cannot be changed.

Colorado Family and Medical Leave Insurance Program Setup

Employers with Colorado employees must provide Family and Medical Leave Insurance (FAMLI). The premium is currently set to 0.9% of the employee’s wage, with 0.45% paid by the employer and 0.45% paid by the employee. Employers may elect to pay the full amount of 0.9% if they choose to offer this as a benefit for their employees. Employers with nine or fewer employees nationwide do not have to contribute to the program but do need to remit their employees' share of the premium on behalf of employees each quarter.

1. Register for an Account

   Create a My FAMLI+ Employer account in order to report wage data, remit premium payments, apply for exemption with a private plan, and upload letters of declination votes. In order to safeguard your My FAMLI+ Employer account, you will need to sign in with Login.gov which provides multi-factor authentication to the login process.

2. Configure Payroll

   Provide your My FAMLI+ Employer account ID to your payroll provider.

3. Post Notice

   Post the program notice in a prominent location at your workplace. Additionally, upload an electronic copy to your company's internal messaging boards or email lists and direct all remote workers to these resources.