Please note: this article is about the Justworks Payroll product. Not sure which product you're using? Check out: How Do I Know Which Justworks Product I Have?
Paying employees in Colorado
When hiring employees in new states, you will need to register for relevant state tax accounts to facilitate their payment. In Colorado, you must be registered with the Colorado Department of Revenue (DOR), Colorado Department of Labor and Employment (CDLE), and, if applicable, Local Colorado tax agencies.
Alternatively, Justworks Payroll can handle the registration process for you. We offer state tax registration services to assist with registering your business in new states. To request registration, please contact us at support@payroll.justworks.com.
Your Colorado Accounts and Rate Info
Colorado requires online registration with the Secretary of State. Out-of-state companies should verify if additional registration or documentation is needed. You will then need to register for both withholding and unemployment tax accounts using MyBizColorado, this singular application will register you with the DOR and CDLE.
Note: If you have employees in any of these locations, you or your employees may need to pay an Occupational Privilege Tax (OPT): Aurora, Denver, Glendale, Greenwood Village, and Sheridan
Additionally, starting January 1, 2023, the Colorado Department of Unemployment's new Paid Family & Medical Leave Insurance (FAMLI) program will impact your company's payroll. You can register for a FAMLI account with My FAMLI+ Employer. Upon registration, you can find your 10-digit FAMLI account ID number directly in the MyFAMLI+ portal.
Find This Information
Locate your Colorado Withholding Account Number:
- If you've previously processed payroll in Colorado, you can locate your Colorado Account Number (CAN) on:
- Your Colorado Revenue Online portal. Log in and access your Wage Withholding account, then find the account number formatted as “########-###-WTH”.
- Form DR 1094 - CO quarterly returns.
Locate your Unemployment Account Number and Tax Rate:
- Please find your unemployment account number and current tax rate in your MyUI Employer account. Navigate to the “Account Information” panel labeled Current Rate (New Employer or Computed).
- If you don't know your account number or rates, contact the agency at (800) 480-8299.
Locate your FAMLI Account ID:
- You can find your FAMLI account ID in two ways:
- Check your email for the confirmation message from the agency, which will include your account ID.
- Sign into your MyFAMLI+ account and follow these steps:
- Click on "Manage accounts."
- Your account ID will be displayed under the “Account ID” column.
Locate your Local Tax Account Number (OPT) (if applicable):
- 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 agencies directly.
Entering State Tax Info in Justworks Payroll
Once you registered with the State and have a valid CO address added to your company’s offices, you can add your account info in Justworks Payroll by navigating to:
- Company > Settings in the left navigation bar
- Under ‘Company tax info’ click into “Colorado” to edit the state tax information
In your Justworks Payroll account, you’ll want to enter your Colorado Withholding Account Number, FAMLI Account Number, Unemployment Insurance Account Number, and, if applicable, your local OPT tax account.
In addition to the account numbers, you’ll need to enter the following tax rates: Unemployment Insurance Total Combined Rate, Unemployment Insurance Surcharge Rate.
Third-party admin access
As your payroll provider, Justworks Payroll will utilize the provided account information to manage and report your CO tax liabilities. Occasionally, the state may issue notices related to payroll taxes.
Justworks Payroll can examine these notices if granted Third-party admin access to your CO state tax account. During onboarding, we will request that you sign state specific TPA forms, which authorizes us to handle and report your taxes to the state.
Ensure Justworks Payroll has TPA access for three Colorado accounts: your withholdings account, state unemployment insurance (SUI) account, and FAMLI account. The steps to grant TPA access for each account are provided below.
CO Withholdings Account TPA
Once you’ve logged into your CO DOR revenue account, you can follow these steps:
- Select > Manage My Profile
- Select > More
- On the Access Management Card> Select Grant Third Party Access
- Click Next
- Enter the Third Party's Username > JWPayroll
- "Periods this login has access to": Select > Periods From Date
- Access Level > Select All Access from the dropdown
- Submit and you're done!
CO SUI Account TPA
After logging into your CO SUI account, you can follow these steps:
- On the Employer Home Screen, scroll down to the Employer Home selection > Select Account Maintenance > Third Party Administrator (TPA) Authorization
- Once you're on the Third Party Administrator (TPA) Authorization screen at the bottom of the screen click the new button to assign a TPA to your account
- Justworks Payroll’s TPA ID is: 500005835
- Enter TPA Service Begin Date: (Must be at the start of the Quarter ex. January 1st, April 1st, July 1st or October 1st
- Leave end date blank
- Add all the roles that are blue and add view rate, notice and voluntary contributions
- Click save
- Screen will display a summary of your TPA assignments / roles
CO FAMLI Account TPA
Once your CO FAMLI account details have been entered in your Justworks Payroll account, you will receive an email from the state notifying you that a TPA access request was sent. You can then grant the request through that email.
Alternatively, you can log into your CO FAMLI account to grant the pending TPA request.
Why is this important?
While Justworks Payroll calculates tax liabilities as part of payroll processing, we will need to return any tax liabilities we are not able to remit to your company bank account if we cannot gain access to your CO state tax accounts. Then, you will need to use those funds to remit and file your company’s state taxes.
Disclaimer
This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, legal or tax advice. If you have any legal or tax questions regarding this content or related issues, then you should consult with your professional legal or tax advisor.