Having payroll issues? Learn how to troubleshoot blocked payroll.
Setting up payroll in Colorado for the first time
Before you can pay employees in a new state, you must register with the state’s tax agencies. This lets you file and pay the right taxes.
Use the dropdowns below to learn more. Use CMD + F (or CTRL + F) to search for words in the article.
Gusto works with Middesk to help you register with tax agencies in new states.
For now, this includes: Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, Florida, Georgia, Hawaii, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, South Carolina, South Dakota, Tennessee, Texas, Utah, Vermont, Virginia, Washington, West Virginia, Wisconsin, and Wyoming.
Get help registering for state taxes
We can help you register for state tax accounts after you:
Cost, timeline, and who can register
The cost, steps, and turnaround time depend on the state. Gusto will show you these details when you start the registration process.
Middesk cannot help if your company is:
What the process looks like
Third-Party Access (TPA) and Power of Attorney (POA)reminder
Some state agencies need Gusto to have TPA or a POA on file to file and pay your taxes. Usually, Middesk does not set this up, so you’ll have to do it yourself after registration.
Check the state registration articles to see if TPA or POA is needed and how to set it up. If there's no “Authorize Gusto” section, then TPA is not needed right now.
If setting up TPA requires online agency portal access:The cost, steps, and turnaround time depend on the state. Gusto will show you these details when you start the registration process.
Need help with registration questions?
If you’re not sure how to answer one of the registration questions, check Middesk’s Help Center or email them at [email protected].
How to get started with state tax registration in Gusto:
Important: You may need to give Gusto access
Some states require you to give Gusto third-party access (TPA) or a Power of Attorney (POA) to your tax accounts. Middesk does not do this for you.
Need to make a change?
If you already submitted your info but need to fix something, email [email protected] to update it.
When your order is complete, you’ll get emails from Gusto and Middesk. They’ll detail the next steps, which include:
Before your order is done, you can check the order status in your Gusto account:
For most states where tax registration info is sent by physical mail, here's what to expect:
Q: Can I run payroll before my registration is done?
A: Yes. You may be asked to enter tax rates and tax deposit frequencies, but you can use temporary info.
Important reminders
Q: I need to change some of the registration information that was submitted. What do I do?
A: Email Middesk at [email protected].
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, Middesk cannot help with registration. You'll need to work with a tax advisor and state agencies directly.
Q: What if I'm not liable for unemployment tax yet?
A: If you want Middesk to start setting up an unemployment account number before you're liable, you can:
Q: Can Middesk help if the responsible party is international without an ITIN or SSN?
A: No. Middesk cannot help in this scenario, you'll need to register on your own.
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's 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 Middesk 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 Middesk for help at [email protected].
Q: When will my tax account information be available?
A: Each state and agency takes a different amount of time to process a registration. To estimate when your state tax account info will be available, check the Post Submission Questions in Middesk's help article.
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: Does Middesk help with giving Gusto third-party access (TPA) or Power of Attorney (POA) for tax payments?
A: Some state agencies need Gusto to have TPA or POA access to file and pay your taxes. Usually, Middesk does not set this up, so you’ll have to do it yourself after registration.
Check the state registration articles to see if TPA or POA is needed and how to set it up. If there's no “Authorize Gusto” section, then TPA is not needed right now.
If setting up TPA or POA requires online agency portal access:
Q: Does Middesk help close state tax accounts?
A: No, you'll need to close the tax account yourself.
Q: Can I cancel my Middesk order?
A: At this time, we do not support order cancellations or refunds.
Q: What is Middesk's phone number?
A: To get support from Middesk, you must email them at [email protected]. They can help with registration-specific questions, or changing info that's already been submitted. For all other questions, you can message Gusto.
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 start, make sure you have:
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 the agency will 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 get the official rate notice from the state.
Once you exceed $1,500 in wages, you’ll need to register for a new UI employer account, and the agency will 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 to.
Who is subject to the tax?
The following are subject to the Denver OPT:
Certain employers, such as 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 Labor and Employment 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.
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.
As of 2025, Gusto does not file CO FAMLI taxes for self-employed individuals due to new filing requirements, and a need for supporting documentation we do not have.
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—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 Colorado agencies below.
The CO DOR requires that you make Gusto your third-party agent (TPA) so that we can help keep your account information up to date and troubleshoot tax issues.
Important: You must have "Full access" in your Revenue Online portal to complete the TPA setup. If you get stuck, check the agency's instructions for giving third-party access.
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 requires that you 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.
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 as your TPA.
This agency requires you to make Gusto your third-party agent (TPA) before we can file and pay taxes on your behalf.
You can view forms in Taxes & Compliance > Tax documents. Switch between the tabs to find federal, state, W-2s, and 1099s.
To see what Gusto has paid on your behalf, run the Agency Payments report.
Learn how to close or reopen tax accounts here.