Before you can pay employees, make sure you've registered for payroll in their applicable work state. This can sometimes take several weeks—the sooner you start the process, the sooner you'll have the tax account info required to pay them. Learn more about paying your first employee in a new state by watching this quick tutorial.
Gusto partners with CorpNet to help you register in the state—learn more below.
Click Register a company with the state or Find account numbers and rate info—the company is already registered with the state to learn more about:
Once a work address has been added in a new state and a new employee has been hired and assigned a work address in that state, you can get registration assistance in Gusto.
Pricing varies by state—get started below and during step 4, you'll review the price, process, and estimated timeline to completion.
Here’s a snapshot of the process:
CorpNet can walk you through entering any info that they themselves do not enter in Gusto on your behalf.
After you send your order, we’ll email you with status updates and add your order total to your next monthly invoice.
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 completed, you can use the link in the state registration confirmation email from Gusto to check the status of your order.
You can also check the status in your Gusto account:
If an order is already completed, you'll need to contact CorpNet at [email protected] or 1(888) 449-2638 to cancel. They’re open Monday-Friday from 7am-5pm PT.
If your order is still in progress, you can cancel from your Gusto account:
Q: Can I run payroll for my employees before my registration is complete?
A: Not in most cases—you typically need to have a withholding account number and required tax rate(s) in Gusto before you can run payroll.
If you’re registering in a state where there is no income tax withheld, you can use the state-specific “new employer rate” in this article until you receive your company-assigned rate from the agency.
Q: Can I use Gusto to register in a new state if I don't have a Federal Employer Identification Number (FEIN) yet?
A: No–you must have a FEIN entered in Gusto to order a state tax registration.
Q: Where can I see all my tax information?
A: You can see all tax details in the following locations:
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: My company is a nonprofit and I'm unable to enter 0% in the responsible party section, what do I do?
A: Some states have a 1% minimum for the responsible party ownership percentage. Those states are: ID, KS, MN, OH, SC, DC, DE, MD, NJ, NY, and RI.
Registration orders will need to be placed directly through CorpNet, outside of Gusto, or you'll need to register directly with the agency yourself.
Click the dropdowns below to learn how to register with state and local agencies and how to give Gusto the third party access (TPA) we'll need to file and pay certain taxes on your behalf.
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 of the state of Colorado, you'll want to double-check whether or not 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 here.
Once online registration is complete, you'll receive instant confirmation on MyBizColorado and they'll also send a letter in the mail.
Once a valid Colorado work address has been added in Gusto for one or more employee(s), you can add your tax account information:
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—we just suggest you add the "New employer SUI tax rate" specific to Colorado in the meantime.
Action required once the company becomes liable
Once you exceed $1,500 in wages, you’ll need to email [email protected]. The email should include:
Once the agency has assigned a company-specific unemployment rate, they'll send you a Notice of Employer's Tax Rate (Form UITR-7) in the mail. Enter that rate in Gusto from the Taxes & compliance section of an admin account.
The Colorado Department of Unemployment has a new Paid Family & Medical Leave tax that affects your company’s payroll beginning in 2023.
As your payroll provider, we’ll withhold and remit tax contributions on your company’s behalf for all payrolls with check dates beginning in Q1 2023.
Do I need to register?
Yes—once you've registered, you'll receive your new 10-digit account number from the agency.
Participation and contribution requirements
An employer’s total nationwide employee count determines whether they pay the employer-share of the premium. Employer size is calculated annually by looking at the previous calendar year.
Employers only need to pay premiums for the 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.
Unless your company is exempt, here are the requirements:
If you have additional questions, you can learn more about the tax in this FAMLI resource, where you can access the FAMLI toolkit for employers. You can also contact the agency by email at [email protected].
Exempt employers
Employers can receive an exemption if they:
If you think your company is exempt from FAMLI, you must confirm with the state or you could be liable for past withholdings and penalties. Once your exemption is confirmed, reach out to Gusto and we will apply the exemption. Colorado is not expecting to approve exemptions until Q3 2023. Gusto will continue withholding until these exemptions can be placed.
How is the tax calculated?
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.
FAMLI FAQs
Q: What if I already registered and Gusto also registers me? Will there be a problem?
A: No, there should be no issues with this.
Q: If I employ fewer than 10 employees nationwide and therefore do not owe the ER premium, do I need to register?
A: Yes, you are still responsible to pay and file on behalf of your employees. You must register and select “yes” that they are liable.
Q: I want to clear the “To do” item on my Gusto dashboard. What answer should I select?
A: You can select Yes. If we're unable to register for you, we'll email you.
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 wages.
Denver OPT registration
You can learn more about how taxation for Denver OPT works here.
Aurora OPT registration
Gusto accepts either the Aurora OPT Business License Account Number or the Aurora account ID. Learn more about how taxation for Aurora OPT works.
Sheridan OPT registration
Glendale OPT registration
Greenwood Village OPT registration
Once a valid local address has been added in Gusto for one or more employee(s), you can add your tax account information:
Two agencies require that you make Gusto your third-party agent (TPA) before we can file and pay taxes on your behalf:
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 troubleshoot and fix the issue.
If you've already registered in the state, you'll need to enter your tax account details in Gusto in order to pay employees.
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 Register a company with the state dropdown above in this article.
If you've run payroll in Colorado in the past, you can find your withholding tax account number 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're unsure of your account number, call the Colorado Department of Revenue at (303) 238-7378.
In order for Gusto to electronically make payments on your behalf, Colorado requires a Withholding Credit ID number in addition to your withholding account number—Gusto uses the withholding account number entered in Gusto to obtain the Withholding Credit ID directly from the agency.
If we're unable to obtain the Withholding Credit ID for any reason, you'll need to call the agency at (303) 238-7378 to troubleshoot. Some common reasons we cannot obtain your number include:
You can find your unemployment account number and current tax rate in the MyUI Employer website.
The tax rate in the agency website will be displayed as a decimal, not as a percentage. When you enter it in Gusto, please enter it as a percentage. For instance, if the agency website says 0.0644, this rate should be entered as 6.44% in Gusto.
If you're unsure what your account number or rate is, call the agency at (800) 480-8299.
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 number(s) and deposit schedule(s) 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.
Two agencies require that you make Gusto your third-party agent (TPA) before we can file and pay taxes on your behalf:
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 troubleshoot and fix the issue.
Once a valid local address has been added in Gusto for one or more employee(s), you can add your tax account information:
Where to find the forms available in your account
Head to the Taxes & compliance section and select Tax documents. Use the tabs on the page to toggle between federal, state, W-2, and 1099 forms.
Asterisks info—only if applicable