Colorado Payroll Tax and Employer Registration

A Complete 2025 Guide

Brought to you by US TAX BAY – Your Payroll Compliance Partner

If you're planning to hire employees in Colorado, getting your payroll tax accounts in order is a legal necessity. From wage withholding to state unemployment insurance (SUI) and even local payroll taxes, Colorado businesses must register with multiple agencies and comply with different filing schedules.

At US TAX BAY, we streamline this process, ensuring fast, accurate registration and ongoing compliance for businesses in every industry.

Why Payroll Tax Registration Matters in Colorado

Payroll taxes in Colorado help fund essential state and local programs such as unemployment insurance, infrastructure, and municipal services. Failing to register properly or file on time can lead to steep penalties, interest charges, and legal complications.

Types of Colorado Payroll Taxes for Employers

Colorado employers may be responsible for three main types of payroll taxes:

1. State Unemployment Insurance (SUI) Tax

2. Wage Withholding Tax

3. Local Occupational Privilege Taxes (OPT)

   
   

Let’s break down each one and explain how to register.

1. Colorado State Unemployment Insurance (SUI) Tax

Agency:

Colorado Department of Labor and Employment (CDLE)

Who Must Register:

You're required to register if your business meets any of the following:

• Paid $1,500 or more in wages during any calendar quarter

• Employed at least one worker for any portion of a day in 20 different weeks during the year

• Operate as a nonprofit, agricultural, or domestic employer (see the CDLE Employer Liability Chart for specifics)

  
  

How to Register:

• Online Only: Register at the MyUI Employer portal

  
  

Filing Requirements:

File quarterly wage and premium reports:

Quarter	Wages Paid	Due Date
Q1	Jan–Mar	April 30
Q2	Apr–Jun	July 31
Q3	Jul–Sep	October 31
Q4	Oct–Dec	January 31

2. Colorado Wage Withholding Tax

Agency:

Colorado Department of Revenue (DOR)

Form Required:

Form CR-0100 – Colorado Business Registration

Who Must Register:

Any business paying wages to employees who either:

• Live in Colorado, or

• Perform work in Colorado

How to Register:

• Online or by Mail: File Form CR-0100 online via the Colorado Revenue Online system, or download and mail the form.

Filing Frequency & Deadlines:

Annual Withholding	Filing Frequency	Deadline
< $7,000	Quarterly	Last day of the following month
$7,000–$50,000	Monthly	15th of the following month
> $50,000	Weekly	3rd business day after each Friday

Use the Colorado Withholding Worksheet (DR 1098) to calculate accurate deductions based on employee W-4s or Colorado DR 0004 forms.

3. Colorado Local Payroll Taxes – Occupational Privilege Tax (OPT)

Certain cities impose a head tax or OPT that both employers and employees must pay.

Sample OPT Rates by Municipality:

City	Employee Rate	Employer Rate
Denver	$5.75/month	$4/month
Aurora	$2/month	$2/month
Glendale	$5/month	$5/month
Greenwood Village	$2/month	$2/month
Sheridan	$3/month	$3/month

Filing Frequency:

Set by each municipality—monthly or quarterly, depending on tax liability. Glendale, for example, adjusts filing based on your payment volume.

How Much Are Payroll Taxes in Colorado?

Payroll tax rates vary based on factors like wage levels, employment history, and the municipality where you operate. Here's a general breakdown:

• SUI: Varies for new vs. experienced employers; CDLE determines your rate annually

• Withholding Tax: Based on wages and employee W-4 or DR 0004 info

• OPT: Fixed monthly amounts by municipality

Avoid Penalties and Stay Compliant with US TAX BAY

Navigating multi-agency registration and tracking variable filing schedules is no small task.

That’s why businesses across Colorado trust US TAX BAY for:

✅ Employer registration services

✅ EIN setup and withholding account creation

✅ Unemployment tax setup and e-filing

✅ Municipal OPT compliance

✅ Ongoing support for multi-state businesses

Let’s Get You Registered Today

Avoid delays, penalties, and paperwork headaches. Let US TAX BAY register your Colorado payroll tax accounts—fast, accurate, and fully compliant.

👉 Contact us now 

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