Colorado employer tax information
About Colorado employer tax information
With Square, you can run payroll, pay your taxes and stay ahead of the compliance to focus on running your business. This guide is intended for your state taxes only. It’s important to note that laws vary by jurisdiction, and this guide does not attempt to address all jurisdictions or federal taxes — for example, counties or cities often have requirements that differ from federal and state law.
Before you begin
To sign up for the Square Payroll in Colorado, you must be registered with the Colorado Department of Revenue (DOR) and the Colorado Department of Labor and Employment so we can pay and file your state taxes. Review the information about each agency for signup.
Colorado Department of Revenue (DOR)
Account number (8 digits)
filing frequency: weekly, monthly, or quarterly
Colorado Department of Labor and Employment
Colorado UI employer account number (8 digits)
Colorado unemployment insurance base rate: X.XX%
Colorado support surcharge rate: X.XX%
Colorado solvency surcharge rate: X.XXX%
If you are a new business, register on the Colorado Department of Labor and Employment website. You need to enter the first 8 digits of your Colorado Account Number and your Filing Frequency.
If you are already registered with the Department of Revenue, you can find your Colorado Account Number and Filing Frequency on the Colorado Department of Labor and Employment website or by contacting the CO Department of Revenue at 303-205-8333.
The CO Department of Labor and Employment typically requires employers to file and pay unemployment taxes starting in the quarter that wages are first paid. If you become liable for unemployment taxes and register an account in a later quarter, it may be necessary to file these taxes retroactively. Visit the Colorado system or contact the CO Department of Labor and Employment directly to determine your requirements and ensure any outstanding tax filings are completed promptly to avoid penalties.
Colorado payroll tax details
Square Payroll processes the following per the frequency for the listed state agencies:
Colorado Department of Revenue (DOR)
- Wage withholding tax return (DR 1094): filed after every pay run
- The withholding tax payment made by Square Payroll serves as both the payment voucher and filing. This form will not appear under Tax Forms in your Square Dashboard.
- Wage and tax statement (W-2): filed annually
Colorado Department of Labor and Employment
- Unemployment insurance payment: filed quarterly
- Quarterly report of wages paid: filed quarterly
- New hire report: filed as needed
Square Payroll processes the following per the frequency below to the listed local state agencies:
- Denver occupational privilege tax return: filed monthly or quarterly
Aurora Tax & Licensing Division
- Aurora occupational privilege tax return: filed monthly
- City of Glendale occupational privilege tax return: filed monthly
- Greenwood Village occupational privilege tax return: filed monthly
Make Colorado state tax payments
To make Colorado withholding tax payments, you must be registered with the Colorado Department of Revenue and have a Colorado Registration Account Number. Learn more on the Colorado Department of Revenue website. If you’re not registered with the DOR, you can register as a new business by completing Form CR 0100.
- To pay online, enroll with the Revenue Online portal for an online account.
- To pay by mail, make your check or money order payable to the “Colorado Department of Revenue” and mail with a completed copy of Form DR 1094 to the DOR at:
Colorado Department of Revenue
Denver, CO 80261-0009
For questions about withholding tax payments, visit the CO DOR website or call 303-238-7378.
To make Colorado unemployment tax payments, you must be registered with the Colorado Department of Labor (DOL) and have a Colorado Unemployment Tax Account Number. If you’re not registered with the DOL, you can register on the Colorado Workforce website.
To pay online, sign in to MyUI Employer.
For questions about unemployment tax payments, visit the CO DOL website or call 303-318-9100.
Make Colorado payroll withholding tax filings
Monthly returns are due by the 15th of the month following the month in which the tax was withheld (for example, due on April 15 for taxes that were withheld in March). Quarterly withholding tax returns are due by the last day of the month following the close of the calendar quarter (for example, due on April 30 for the first quarter).
- To file online, use the Revenue Online to submit your electronic return.
- To file by mail, download Form DR 1094, and mail the return with any tax payment due to the address indicated on the form.
Annual withholding tax reconciliations are due on January 31 following the close of the calendar year.
- To file online, use the Revenue Online to submit your electronic return.
- To file by mail, download Form DR 1093 and mail your return with any tax payment due to the address indicated on the form.
You must file a return even if no taxes are due. For questions about withholding taxes, visit CO Department of Revenue website or contact the Colorado Department of Revenue at 303-238-7378.
Make unemployment insurance tax filings in Colorado
Unemployment insurance tax reports and payments are due by the last day of the month following the end of the calendar quarter (for example, due on April 30 for the first quarter).
- To file online, sign in to the MyUI Employer portal.
- To file by mail, use the form mailed to the address on file. If you have suspended paper mailings, call 303-318-9100.
You must file reports even if you pay no wages during a particular quarter. You will be subject to a penalty if you fail to file.
For more information on state unemployment taxes, visit the Colorado Department of Labor website or contact the Colorado Department of Labor at 303-318-9100.
Amend duplicate tax filings in Colorado
The Colorado Department of Revenue (CO DOR) allows you to correct any payroll that was misreported on a previously submitted Form DR-1094 by filing an amended Form DR-1094. Here are some general guidelines for completing your amended return:
- Log in to the Colorado DOR online services to file electronically or download a paper Form DR-1094 to file by mail.
- Obtain a copy of the Form DR-1094 that was originally filed. This is required for the “As Originally Filed” section.
- Be sure to only report the information that was misreported on the original submission.
- Submit your completed return online or by mail to the address listed on the form.
File your amended Form DR-1094 as soon as possible to avoid unnecessary penalties or fees from underreporting your wages and taxes. If you have any questions, contact the Colorado Department of Revenue at 303-238-7378 or visit the Colorado Department of Revenue website.
The Colorado Department of Revenue allows you to correct any payroll that was misreported on a previously submitted Form W2 by filing a completed Form DR-1093 in addition to your amended Forms W-2. Here are some general guidelines for submitting your amended Form W-2(s):
- Obtain a copy of the Form W-2C(s) that was filed with the IRS.
- Download Form DR-1093. Be sure to check the box “Mark here if this is an amended return.”
- Submit your Form W-2C(s) and completed Form DR-1093 to the address listed on the form.
File your Form W-2C(s) and Form DR-1093 as soon as possible to avoid unnecessary penalties or fees from underreporting your wages and taxes. If you have any questions, contact the Colorado Department of Revenue at 303-238-7378 or visit the Colorado Department of Revenue website.
The Colorado Department of Labor and Employment allows you to correct any payroll that was misreported on a previously submitted Form UITR-1 by filing a Form UITR-3. Here are some general guidelines for completing your amended:
- Download Form UITR-3.
- Obtain a copy of Form UITR-1 that was originally filed. This is required for the “Prior Report” section of the amendment.
- Mail your completed return to the address listed on the form.
File your Form UITR-3 with the CO Department of Labor and Employment as soon as possible to avoid unnecessary penalties or fees from underreporting your wages and taxes. If you have any questions on filing your amendment, contact the Colorado Department of Labor and Employment at 303-318-9100 or visit the Colorado Department of Labor and Employment website.
Find your Colorado tax account numbers
If you are a new business, register online. You will only need to enter the first 8 digits of your Colorado Account Number and your Filing Frequency.
If you are already registered with the Department of Revenue, you can find your Colorado Account Number and Filing Frequency online or by contacting the CO Department of Revenue at 303-205-8333.
If you are a new business, register online to retrieve your CO UI Employer Account Number.
If you already have a CO UI Employer Account Number, look it up online or find it on the Unemployment Insurance Rate Notice mailed by the CO Department of Labor and Employment. If you are unsure, contact the agency at 303-318-9100 or [email protected].
File and pay Colorado occupational privilege tax
If you are a new business, register on the Aurora Tax Portal to receive your Aurora Account Number.
If you are already registered with the City of Aurora, you can retrieve your account number by contacting the agency at 303-739-7800.
Additionally, in order to file and pay your Aurora Occupational Privilege Taxes, Square Payroll needs to be authorized as your Third Party Administrator (TPA). To authorize Square Payroll:
- Sign in to your Aurora Tax Portal.
- Go to Settings and select Third Party Access.
- Click Grant Access to a Third Party.
- Enter “squarepayroll” as the username for third-party login and select Next.
- Review your information and select Submit.
If you are a new business, register on the Denver eBiz Tax Center to receive your Denver account number and filing frequency.
If you already registered with the city of Denver, you can find your Denver account number and filing frequency on the Denver eBiz Tax Center or retrieve it by contacting the agency at 720-913-9400.
If you are a new business, submit a Business Registration form to receive your Glendale Account Number.
If you are already registered with the City of Glendale, you can retrieve your account number by contacting the agency at 303-639-4706.
If you are a new business, apply for an Occupational Privilege Tax License to retrieve your Greenwood Village Account Number.
If you are already registered with the City of Greenwood Village, you can retrieve your account number by contacting the agency at 303-486-8299.
Square Payroll will calculate and withhold Sheridan occupational privilege tax (OPT) from your employees but you will need to file and pay this tax to the City of Sheridan manually. We’ll provide you with all the information you’ll need at the time of filing. Square Payroll will file all other state taxes including Colorado state income tax and unemployment insurance (UI) tax for you.
Provide third-party administrator authorization to Square Payroll
To file and pay your Colorado unemployment insurance taxes, you need to authorize Square Payroll as your third-party administrator (TPA). You can also find step-by-step instructions on how to add CO Unemployment Insurance TPA in the CDLE User Guide.
The following TPA instructions are for CO Unemployment Insurance only.
Sign in to the system and select Account Maintenance > Third Party Administrator (TPA) Authorization.
Select New and enter the Square Payroll TPA ID 500003292. Select Next.
Enter the first day of the current quarter as the TPA Service Begin Date. You can leave the End Date blank.
Select what roles you would like to assign Square Payroll. We recommend selecting the following: Edit Account Management, Edit Employment and Wage Detail, View Employment and Wage Detail, View Rate Notice and Voluntary Contribution, Edit Tax Payments Update and Submit, and View Tax Payments.
Select Save.
Colorado Family and Medical Leave Insurance Program
Effective January 1, 2023, Colorado is requiring non-exempt employers to withhold and pay premiums to the Family and Medical Leave Insurance program. The Colorado Family and Medical Leave Insurance program (CO FAMLI) is funded through premiums paid by covered individuals and employers in the form of paycheck withholdings and is administered by the Colorado Department of Labor and Employment (CDLE).
In order for Square Payroll to file and pay this tax on your behalf, you will need to complete the following steps.
For Square Payroll to accurately calculate your taxes:
- Sign in to your Square Dashboard, and select Staff & payroll > Settings > Tax Info.
- Select one of the following options:
- I employed fewer than 10 individuals in the previous year and will not pay the employer portion of the tax,
- My business is exempt from participating in the CO FAMLI program, or
- I employed 10 or more individuals in the previous year and will pay the employer portion of the tax.
Small businesses that employ less than 10 covered individuals are not required to pay the employer portion of the premium; we will only withhold the employee contributions. If you would like to opt in to pay the employer contribution, choose I employed 10 or more individuals in the previous year and will pay the employer portion of the tax.
Local government employers, nonparticipating self-employed, and employers with approved private plans may be qualified for an exemption. If your business is approved for an exemption from the CO FAMLI program, select My business is exempt from participating in the CO FAMLI program. To learn more about exemptions or how to determine your workforce size, visit the CO FAMLI website.
To receive your 10-digit CO FAMLI account number, register for an account in the My FAMLI+ Portal. For more information about the registration process, reference the Employer’s Guide to FAMLI by Colorado Department of Labor and Employment. You can find your 10 digit account number by selecting Manage Accounts in the Dashboard tab of the MyFAMLI+ portal.
After you complete the registration process:
- Sign in to your Square Dashboard and select Staff & payroll > Settings > Tax Info.
- Enter your 10-digit account number in the Colorado Family and Medical Leave Insurance Account Number field and select Save changes.
Once you have your 10-digit account number, you can grant Square TPA access.
- Sign in to your MyFAMLI+ Employer account
- Select Manage My Accounts > Manage Accounts.
- In the Account name column of the table, select your company’s tax account.
- Once you are in your account page, go to Third Party Administrator.
- Search for “Square Payroll Inc,” and enter the start date as the date you sent your first pay date with Square Payroll.
- Make sure your information is correct and select Save.
- Confirm your information is correct and select Yes, add TPA.
- You will see “Square Payroll” under the TPA Account column in your Account’s page.
For more information refer to the Employer User Guide.