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To pay employees in a state where you’ve never operated or paid people before, you must register with the relevant state tax agencies. This lets you pay and file the taxes you and your employees are liable for.
Watch this quick tutorial to learn more.
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 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, or if the business is undergoing a merger or acquisition?
A: No–you must have a FEIN entered in Gusto to order a state tax registration.
If your company is going through a merger or being acquired, CorpNet cannot assist with registration. Work with your tax advisor and state agencies directly to navigate this change and register your business.
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: What if I'm not liable for unemployment yet (referring to the minimum wage threshold in some states)?
A: In order for CorpNet to start the registration process for an unemployment account number before you're liable, you can:
Q: Can I register with CorpNet if the responsible party is based internationally and does not have an ITIN/SSN?
A: CorpNet may be able to assist directly—reach out to [email protected] or call 1(888) 449-2638.
Q: My company is a nonprofit—why can't I enter 0% in the responsible party section, or add a commercial owner?
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.
Some states require that an individual owner be listed on the account. If you're a non-profit and not sure how to proceed, contact CorpNet directly at [email protected] or call 1(888) 449-2638.
Q: Does CorpNet help with state tax account closures?
A: No—you'll need to close the tax account on your own.
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 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.
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, let us know by contacting us from your account.
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 city of Aurora imposes an Occupational Privilege Tax (OPT) on individuals who work within the city limits.
Employees and employers are subject to the Aurora OPT of $2 per month if:
Religious/charitable organizations may be exempt from paying the employer-portion of tax—however, the employer is still required to withhold and pay the employee-portion for employees of such organizations. If you've confirmed an employer-exemption, let us know by contacting us from your account.
Learn more about Aurora OPT.
How do I register for the Aurora OPT?
Gusto accepts either the Aurora OPT Business License Account Number or the Aurora account ID.
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 has a new Paid Family & Medical Leave Insurance (FAMLI) program that affects your company’s payroll starting Jan 1, 2023.
As your payroll provider, we’ll withhold and remit employee and—if you’re required to pay them—employer contributions for all payrolls with check dates beginning in Q1 2023.
All Colorado employers with 1 or more qualifying employees must register for a FAMLI account, regardless of whether they are required to pay the employer portion of this tax.
This is because all CO employers must remit payments on behalf of their employees.
If you offer your employees an equivalent private plan, you must apply for the private plan approval with the FAMLI Division. In the case your plan is approved, contact Gusto to let us know you’ve received approval from FAMLI to use your equivalent plan.
Note that Colorado is not expecting to approve exemptions until Q3 2023. Gusto will continue withholding until these exemptions can be placed.
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:
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.
Let us know if you're liable for the employer portion of CO FAMLI
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:
Enter your CO FAMLI account number in Gusto
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 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 applicable dropdown above in this article to learn more.
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 on the agency website will be displayed as a decimal, not as a percentage. When you enter it in Gusto, enter it as a percentage.
If you're unsure what your account number or rate is, call the agency at (800) 480-8299.
Once you’ve created a MyFAMLI+ account, can find your FAMLI account ID in two ways.
Check your email for your account ID
After you create your MyFAMLI+ account, the agency will send you a confirmation email. This message should also contain your account ID.
Sign into your MyFAMLI+ account to find your ID
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.
Once a valid local address has been added in Gusto for one or more employee(s), you can add your tax account information:
Learn how to authorize Gusto as your third-party agent (TPA) for the agencies below.
This agency requires you to 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.
The CO DOL requires that you make Gusto your third-party agent (TPA) before we can file and pay taxes on your behalf. Gusto is not able to add access on your behalf.
If you need help adding Gusto as a TPA to your account, check out the agency's instructions.
Gusto should now have access the account. If you need to modify the TPA for any reason, you can click “Modify” under the “Third Party Administrator (TPA)" Information.
This agency requires you to make Gusto your third-party agent (TPA) before we can file and pay taxes on your behalf.
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.
Asterisk info—only if applicable
Filings marked with an asterisk (*) will not appear in your Tax documents tab—these are coupons, payment vouchers, or other forms that are filed electronically.
You can confirm tax payments were made by running an agency payments report.