You will need to register with these agencies in order for Gusto to file and pay your taxes.
Register an existing company
The Colorado Department of Revenue will issue you a withholding account number. You can check your previous Colorado quarterly returns (form DR 1094) for this information. It will be an 8-digit ID number. Some documentation includes trailing digits (i.e. 12345678-003-WTH). Please enter only the first 8 digits (12345678) and no trailing digits (003-WTH). Need help? Call the Colorado Department of Revenue at (303) 238-7378.
You can find your current unemployment tax rate by referring to your most recent Notice of Employer's Tax Rate (Form UITR-7). Need help? Call the agency at (800) 480-8299.
If you have employees working in Denver, Aurora, Sheridan, Glendale, or Greenwood Village you may be liable for OPT. You can find your OPT account number and deposit schedule on a notice from your local agency. For Denver OPT please make sure the agency is aware you are using a third party service for payroll and you will need to be a monthly depositor.
Register a new company
Any business in Colorado with employees is required to have a registered agent
on file. If your main location is in state, this will be your business location. If your main business location is out of state, the registered agent will serve as your de facto location in Colorado to receive official state notices and legal documentation. A registered agent can be an employee, as long as they are 18 years of age or older and have residence in Colorado, or a registered agent service. Tip:
Stay away from companies offering free agent service. They very often will require you to purchase other goods or services or will charge you fees after the first year.
You will need your registered agent and your Federal EIN already in place. You can then apply for your SOS number via an online form
Income and unemployment tax
You can apply for both taxes online with the Colorado Business Express
. This will get you registered with both the Department of Revenue and the Department of Labor. Once you have registered online, you will receive an instant confirmation followed up by a letter in the mail.
You will be liable for state unemployment if you have paid at least $1500 in wages in a calendar quarter or had at least one employee for a portion of a day in each of 20 different weeks during the current or preceding calendar year.
UI earned rate: The new employer rate is typically between 2.11-9.57%. Your Unemployment Insurance rate will appear on the Notice of Employer's Tax Rate (Form UITR-7). The Bond Principal rate should be included in this rate.
Withholding Credit ID
The withholding credit ID (also called the EFT credit ID) allows us to make electronic payments to the state on your behalf. We will use the withholding account number you provide to obtain the credit ID for your company.
If we are unable to obtain this we will notify you to call the agency at (303) 238-7378 to troubleshoot. Some common reasons we cannot obtain your number are: You have provided an incorrect withholding account number, you have not opened a withholding account under the number provide, the legal name you have provided does not match what is registered with the state.
Occupational Privilege Tax (OPT)
If you have employees working in Denver, Aurora, Sheridan, Glendale, or Greenwood Village you may be liable for OPT.
Occupational Privilege Tax (OPT) is a head tax that includes both an employee and employer portion which must be paid to the City and County of Denver each month. Employees making over $500 a month are taxed at $5.75 per month and employers are taxed at $4 per month for each employee. The $4 tax per employee applies even if you do not run payroll. To get a Denver OPT account and receive a Tax ID, fill out and mail in an application that can be accessed online here
. Please make sure to note that you are using a third party service for payroll as they agency will need to assign you a monthly deposit schedule.
To get an Aurora OPT account and receive a Business License Account Number, register online here
. Registration time can take 10-14 days
Troubleshoot Department of Revenue authorization issues
Some agencies require special authorization for Gusto to pay or file your taxes.
To ensure successful authorization, please verify that you have added the ‘withholding’ tax type to your account and that the following information you have entered into Gusto matches what is on file with the Colorado Department of Revenue:
- Official company name/address
- FEIN - Federal Employment Identification Number
- Withholding Account Number
If Gusto is having trouble gaining access to your account, please verify that the above information matches exactly what the agency has on file by giving them a call at (800) 480-8299.