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To pay employees in a new state, where you’ve never operated or paid people, you must register with the state tax agencies there. This lets you pay and file the taxes you and your employees are liable for.
Watch this quick tutorial to learn more.
Registering for taxes may not be the only to-do when starting or running a business in a new state. Go to our blog for complete guides on starting and running a business in each state.
Gusto works with CorpNet to help you register your business in new states.
What you need to do
Cost and timeline
Prices vary by state. You can see the cost, process, and how long it takes in step four below.
What the process looks like
Third-Party Agent (TPA) authorization reminder
Some state agencies need Gusto to have TPA access to file and pay your taxes. Usually, CorpNet does not set this up, so you’ll have to do it yourself after registration. Work with CorpNet directly to see if they’ve set up TPA for any specific agency.
Check the state registration articles to see if TPA is needed and how to set it up. If there's no “Authorize Gusto” section, then TPA is not needed right now.
Prices vary by state. You can see the cost, process, and how long it takes in step four below.
Some reminders
When your order is complete, you’ll receive emails from both Gusto and CorpNet. They’ll detail the next steps, which include:
Before your order is done, use the link in the state registration email from Gusto to check your order's status.
You can also check the status in your Gusto account:
If your order is still in progress, you can cancel from your Gusto account:
If you were already charged, you'll get a refund in a few business days.
If you canceled your order but would like to re-open it, contact CorpNet directly at (888) 449-2638. Or email them at [email protected].
Q: Can I run payroll before my registration is done?
A: Yes, you can usually run payroll before all state tax info is added in Gusto. You may be asked to enter tax rates and tax deposit frequencies, but can use temporary info.
Important reminders
Q: Can I use Gusto to register in a new state without a Federal Employer Identification Number (FEIN)? What if my business is merging or being acquired?
A: No, you need a FEIN in Gusto to get registration help for state taxes.
If your business is merging or being acquired, CorpNet cannot help with registration. You'll need to work with a tax advisor and state agencies directly.
Q: Where can I find my tax information?
A: You can find your tax info in several places:
Gusto’s state tax registration service does not contain tax, legal, financial, or HR advice. Since rules and regulations change over time and can vary by location, consult a lawyer, HR expert, or accountant for specific guidance.
Q: What if I'm not liable for unemployment tax yet?
A: If you want CorpNet to start setting up an unemployment account number before you're liable, you can:
Q: Can CorpNet help if the responsible party is international without an ITIN or SSN?
A: CorpNet might be able to help. Contact them at [email protected] or 1(888) 449-2638.
Q: Why am I unable to enter 0% ownership for the responsible party or add a commercial owner?
A: Some states have a 1% minimum for the responsible party ownership percentage. These states include ID, KS, MN, OH, SC, DC, DE, MD, NJ, NY, and RI.
You’ll need to place registration orders directly with CorpNet outside of Gusto or register directly with the agency.
Some states require an individual owner to be listed. If you’re a non-profit or unsure, contact CorpNet for help at [email protected] or 1(888) 449-2638.
Q: Does CorpNet help with giving Gusto third-party access (TPA) for tax payments?
A: In most cases, you need to give Gusto third-party access (TPA) to your tax accounts.
Q: Does CorpNet help close state tax accounts?
A: No, you'll need to close the tax account yourself.
Click the dropdowns below to learn how to register for income and unemployment tax in Colorado—includes information about local taxes.
If you're starting a new business in Colorado, you'll need to register with the Colorado Secretary of State before registering with other agencies.
Before you get started, make sure you have the below:
For companies formed outside the state of Colorado, you'll want to double-check whether you need to register with, or provide documentation to, the Secretary of State. For more information about foreign business entities, check out the agency's FAQs.
Once you complete the registration online, you'll receive instant confirmation on MyBizColorado, and they'll also send a letter in the mail.
Your company becomes liable for state unemployment insurance tax once the company has:
If you need to run payroll and do not yet meet the above requirements, Gusto allows it—enter the new employer rate for your state in Gusto in the meantime. Then, update the rate once you receive it.
Once you exceed $1,500 in wages, you’ll need to register for a new UI employer account, and they'll send you a Notice of Employer's Tax Rates (Form UITR-7) in the mail.
Once a valid Colorado work address has been added in Gusto for one or more employees, you can add your tax account information:
If you edit a tax account number after payments or filings have already been made, there may be tax implications. Learn how to pull reports in Gusto that can help you correct any historical tax issues related to tax account number updates.
If you have employees working in one of the following locations, you or your employees may be liable for an Occupational Privilege Tax (OPT):
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.
Some Colorado cities also require employers to pay OPT for business owners and officers who are not included on payroll. In your Gusto account, we'll ask you to include how many business owners/officers are not considered employees but are subject to OPT taxes—do not include owners or officers that you are paying taxable wages.
Who is subject to the tax?
The following are subject to the Denver OPT:
Certain employers, governmental or charitable entities whose employees are performing duties consistent with the organization's exempt status, may be exempt from the employer-portion of the tax (employees are never exempt). If you've confirmed an employer-exemption, contact us to let us know.
Let Gusto know how many business owners you have that are not considered employees, but are responsible for paying Denver OPT:
How is the tax calculated, and when does it get withheld?
We'll usually withhold the tax on the first payroll of each month—while we calculate and withhold the tax monthly, it'll be deposited to the agency based on your company's agency-assigned deposit schedule.
For months when there are no subject employees, employers still owe a $4 minimum for the “business operations” portion of the tax.
Because the tax liability, in part, is based on employees' earned income, it's processed in arrears—this way we know how much they earned the prior month.
How do I register for the Denver OPT?
You can learn more about how taxation for Denver OPT works here.
The Sheridan OPT is withheld on payroll each month and has an employee-portion and employer-match—both are $3.
All employers engaged in business (as an owner, operator, or agent) within the city must pay this tax for each employee who:
How do I register for the Sheridan OPT?
Glendale OPT is withheld monthly for all employees who work within the city and earn more than $750 per month. The $5 monthly fee for these employees is matched by the employer, for a total tax of $10.
How do I register for the Glendale OPT?
Let Gusto know how many business owners you have that are not considered employees, but are responsible for paying Glendale OPT:
The Greenwood Village tax consists of a $2 employee-portion and $2 employer-portion per month (total of $4)—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 (and may not be on payroll) are only subject to the employer portion—learn how to let Gusto know about them below.
How do I register for Greenwood Village OPT?
Let Gusto know how many business owners you have that are not considered employees, but are responsible for paying Greenwood Village OPT:
Once a valid local address has been added in Gusto for one or more employee(s), you can add your tax account information:
The Colorado Department of Unemployment launched a Paid Family & Medical Leave Insurance (FAMLI) program affecting payroll starting Jan 1, 2023.
As your payroll provider, we’ll withhold and send employee and, if required, employer contributions for payrolls with check beginning in Q1 2023.
Important reminders
All Colorado employers with at least one qualifying employee must register for a FAMLI account, even if they do not owe the employer portion of the tax. Employers must still send payments for their employees.
If you offer an equivalent private plan, you must apply for approval with the FAMLI Division. Once approved, contact Gusto to confirm your plan’s approval status.
Self-employed individuals can choose to opt into CO FAMLI but are not required. If you or an employee are considered self-employed in Colorado, follow the steps in the related dropdown below to enroll.
Starting in 2025, Colorado no longer allows payroll providers like Gusto to pay or file FAMLI taxes for Self-Employed Individuals (SEIs). If this applies to your business, learn more below.
Who is a Self-Employed Individual (SEI) in Colorado?
Check CO FAMLI's definition of an SEI to confirm an individual's status.
Next steps depend on your company's unique situation.
Gusto cannot pay or file FAMLI taxes for your business.
What you need to do:
Gusto can file FAMLI taxes for employees, but not for SEIs.
What you need to do:
For more details, visit CO FAMLI’s guide on Self-Employed Workers or call (866) 263-2654.
To get an overview of the process, see the step-by-step instructions in this video. Then:
When you register, you'll receive your new 10-digit FAMLI account ID number directly in the MyFAMLI+ portal.
Colorado employers are only required to pay the employer portion of FAMLI if they have 10 or more employees nationwide in the previous calendar year. You must determine your employee headcount each year by looking at the previous calendar year.
Here’s a summary of the requirements:
Self-employed people or owner-only companies with no employees:
Additional detail can be found in the related "self-employed" dropdown above.
Businesses with 2–9 employees nationwide:
Businesses with 10 or more employees nationwide:
Employers only need to pay premiums for employees who are localized in Colorado. A Colorado employee is someone who performs their work entirely in Colorado and whose work is subject to Colorado State Unemployment tax. More information regarding localization can be found in the FAMLI Division's Premium Rules at 7 CCR 1107-1, Section 1.5.6.C.
More questions? Learn more in this FAMLI resource, where you can access the FAMLI toolkit for employers. You can also contact the agency by email at [email protected].
Employer and employee contributions are calculated as a percentage of wages.
For example: if an employee made $1,000 in wages, the employee would pay $4.50 and the employer would pay $4.50.
Once you’ve determined whether you're required to pay the employer portion of FAMLI (see above), let us know so we can pay and file your taxes accurately:
Click to enter your 10-digit account number.
If you've already registered in the state, you'll need to enter your tax account details in Gusto.
You'll need to be registered with one or more of the below agencies in order for Gusto to file and pay taxes on your behalf:
If you still need to register, click the applicable dropdown above in this article to learn more.
If you've run payroll in Colorado in the past, you can find your Colorado Account Number (CAN) on:
The number is an 8-digit number—some documentation includes trailing digits (e.g.,12345678-003-WTH). In Gusto, enter only the first 8 digits (12345678) and not the trailing digits (003-WTH).
If you do not know your account number, call the Colorado Department of Revenue at (303) 238-7378.
The CO Department of Revenue (DOR) assigns your company one of these tax filing schedules: quarterly, monthly, or weekly (frequent).
You can find your withholding tax filing frequency on:
If you cannot find your company’s filing frequency, call the CO DOR at (303) 238-7378.
You can find your unemployment account number and current tax rate in your MyUI Employer account.
As of Oct 3, 2023, this is a 7 or 8-digit account number.
Your current tax rates should be shown on the main landing page of your MyUI Employer account under the “Account Information” panel labeled Current Rate (New Employer or Computed).
Heads up: Colorado changed its unemployment rate structure for 2024—your annual rate notice will include three rates, all of which need to be entered separately in Gusto as percentages:
If you do not know your account number or rates, call the agency at (800) 480-8299.
You can also check out this agency resource that details how to use and manage your MyUI account.
Once you’ve created a MyFAMLI+ account, you can find your FAMLI account ID in two ways:
If you have employees working in one of the below locations, you or your employees may be liable for an Occupational Privilege Tax (OPT).
You can find your existing OPT account numbers and deposit schedules on notices you've received from the local agencies. You can also contact the agency directly:
If you need to register for an OPT tax, click the Register a company with state and local agencies dropdown above in this article.
Troubleshoot local tax issues
The most common issue is usually related to the tax deposit schedule. Gusto pays OPT taxes monthly, the most frequent schedule, in an effort to minimize potential penalty or interest. If we've let you know of a tax deposit schedule difference, contact the applicable agency directly and request that your deposit frequency be set to monthly.
Some Colorado cities also require employers to pay OPT for business owners and officers who are not included on payroll. In your Gusto account, we'll ask you to include how many business owners/officers are not considered employees but are subject to OPT taxes—do not include owners or officers that you are paying wages.
Once a valid Colorado work address has been added in Gusto for one or more employees, you can add your tax account information:
If you edit a tax account number after payments or filings have already been made, there may be tax implications. Learn how to pull reports in Gusto that can help you correct any historical tax issues related to tax account number updates.
Learn how to authorize Gusto as your third-party agent (TPA) for the agencies below.
This agency requires you make Gusto your third-party agent (TPA) so that we can help keep your account information up to date and troubleshoot tax issues.
Having trouble making Gusto your third-party agent?
If Gusto has trouble gaining the access we need, you'll need to call the CO DOR at (303) 238-7378 to fix the issue.
The CDLE needs you to set Gusto as your third-party agent (TPA) before we can handle your tax filings and payments. Gusto cannot add itself as a TPA for you.
If you get stuck trying to add Gusto as a TPA to your account before we request access, check out the agency's instructions.
Gusto should now have access to your account. If you need to update Gusto’s TPA settings later, click Modify under the “Third Party Administrator (TPA)” section.
If we've already requested access, follow the steps below to approve it. If you get stuck, you can use the agency’s instructions.
Gusto should now have access to your account. If you need to update Gusto’s TPA settings later, click Modify under the “Third Party Administrator (TPA)” section.
Note: This tax has been repealed as of January 1st, 2025—this step is not necessary from that date onwards. However, if you need prior returns amended, Gusto will still need to be listed a your TPA.
This agency requires you to make Gusto your third-party agent (TPA) before we can file and pay taxes on your behalf.
How to find forms in your account
Asterisk info (if applicable)
If a form has a star (*) next to it, it may not show up in your tax documents in Gusto. These forms are usually payment vouchers or other forms (ex. coupons) filed electronically.
You can check if tax payments were made by running an "Agency Payments" report.