Payroll Help

Your Payroll Software questions answered here

Search for:

Payroll Help

New Employers

State Payroll Guide

Training Videos

Payroll Videos

Company Settings

New Users
Payroll Settings
Tax Settings
Direct Deposit Settings
Deductions Settings
Contributions Settings

Employee Maintenance

Managing Employee Info
Managing Time Off

Payroll Procedures

Entering Payroll History
Running a Payroll
Paying 1099 Contractors
Tasks/Edits/Corrections
Downloading & Posting W-2s
General Education
Retirement Plan Integrations

Reports

Payroll Reports
Tax Reports

General Questions

About Online Payroll

Account settings

General

Help For Other Products

Accounting
Time & Attendance
Human Resources
Payroll Tax Filing
Employee Portal
Contractor Portal
Mobile App
Help For Partners

Resources

Payroll Training

Colorado New Employer Information

Congratulations on your decision to become a new employer in Colorado! You will need a few things in place before you run your first payroll. For help registering your business in Colorado, check out our partner, CorpNet.

Federal and State Tax Accounts

Federal Tax Accounts:

Apply for an EIN View Details

Obtain an Employer Identification Number, (also known as an EIN or FEIN), for your business if you do not already have one. The simplest way is to apply for an EIN with the IRS online. There is no cost to apply for an EIN.
To learn more about applying for an EIN, read our help article, “Your Step-by-step Guide on How to Apply for EIN”.

Enroll in EFTPS View Details

Although it is not required, we recommend you enroll in the Electronic Federal Tax Payment System (EFTPS). You can register online for the EFTPS.
To find out more about EFTPS, please read our article, “What Is EFTPS?”

State of Colorado Tax Accounts:

Register as a New Employer in Colorado View Details

As a Colorado new employer, you will need to register on the Colorado Business Express for new employer accounts for:
- Department of Revenue for state income taxes (SIT), also known as wage withholding account number
- Department of Labor and Employment for state unemployment taxes (SUI)
You will also need to register for the Colorado FAMLI for paid family leave. You can register for Colorado FAMLI on the state website.

Get Your SUTA Rate View Details

The Colorado new employer SUTA tax rate is 3.05% for 2024 for non-construction industries. This includes a support rate of 0.17% and a surcharge rate of 1.35%. If you are in the construction or trades industry, your rate will be higher. Please visit the CDLE -Beginning Rates for more information.
The Colorado Department of Labor and Employment will assign your business a new SUTA tax rate every year. This is based on your type of business.
To learn more about SUTA please read our article, “What Is SUTA Tax?”

Register Your Business for Any Local Income Taxes View Details

Colorado does have some localities with income taxes. You will also need to register with your local government if your business is affiliated in any of these localities:
- Aurora (ends 1/2025) Denver, Glendale, Greenwood Village, and Sheridan

State-mandated Requirements

Sign up for Workers’ Comp Insurance View Details

You must have workers’ comp insurance if you have at least 1 employee in Colorado. You can sign up for workers’ comp insurance through a private provider or state-operated fund. Learn more about workers’ comp requirements in Colorado here.
Patriot’s online payroll offers free pay as you go (PAYG) workers’ comp integration with our partner, NEXT Insurance. You can get a free quote with NEXT here.

Offer a Qualifying Retirement Plan View Details

Colorado requires that employers with 5 or more employees who have been in business for at least 2 years enroll in Colorado Secure Savings , the state-mandated retirement program, or offer a qualifying retirement plan alternative.
Patriot has partnered with Vestwell to offer affordable retirement plans for small businesses that integrate with our payroll software. Learn more here.

Setting Up Your New Employee:

Fill Out Form I-9 View Details

Have your employees fill out the required Form I-9. This is a two-part form. The first part is filled out by the employee, and the second part is filled out by the employer.
You will need to keep each employee’s completed Form I-9 as long as the individual works for you. For more information, please read “What Should Be in an Employee File?”
For more information about the I-9, please read “Form I-9 In a Nutshell.”

Have Employee Fill Out Federal Form W-4 View Details

Have your new employee fill out Form W-4, Employee’s Withholding Certificate. This will be used for both Federal and Colorado income taxes.
For more information, read our help article, “What Is a W-4 Form, and What Is it Used for?”

Have Employee Fill Out State Form DR 0004 View Details

Have your new employee fill out the form DR 0004 for state income taxes (SIT).

Report New Hires View Details

Employers in Colorado are required by law to report new employees with the Colorado State Directory of New Hires within 20 days from the date of hire or rehire. This is an online process, and as a new employer you will need to register to use the system first.
For more information, please visit the SDNH.

Meet Minimum Wage Requirements View Details

Colorado’s minimum wage is $14.42 per hour in 2024. If you live in a locality with a more stringent minimum wage law, you must pay employees according to that law. Check with local governments for more information.
You need to display the minimum wage poster for your employees where they can read it.

Obtain Labor Law Posters View Details

Get annual posters and all federal, state, county, and city labor law updates with Patriot’s labor law poster store, powered by PosterElite!

Once you have all the necessary information, you will be able to set up payroll for your business. You need to keep employee payroll records for at least three years. For more information, please read our help article, “What Employers Should Know About Employee Payroll Records.”

Let us know if you have any questions. We are here to help!

Please note, this is not an all-inclusive list for new employers, and there may be other requirements that are not included here. Please visit the Colorado.gov website for more details.

Was this article helpful? *