Colorado State Payroll Tax Filing:
New Hire Reporting, Withholding Forms DR 1094 & DR 1093, and Unemployment Forms UITR-1 & UITR-1A

Yes — effective July 1, 2021, Colorado employers must report independent contractors for whom they are required to report compensation to the IRS. They are reported the same way as regular employees: through the Colorado New Hire Reporting Center online, by fax to (303) 297-2595, or by mail to Colorado State Directory of New Hires, PO Box 2920, Denver, CO 80201-2920.

Employers must report within 20 calendar days of the hire date. If the first regularly scheduled payroll after the hire date falls later than 20 days, that payroll date becomes the deadline. Electronic filers must submit two monthly transmissions no more than 16 days apart. Rehired employees must also be reported within the same 20-day window.

Missing the deadline results in a $25 fine per omitted report. If an employer and employee conspire to avoid reporting, the penalty rises to $500 per violation. Separately, misclassifying an employee as an independent contractor to avoid reporting carries a $5,000 penalty per worker for a first willful violation and up to $50,000 per worker for repeat violations.

Any employer who pays wages to a Colorado resident — whether they work inside or outside Colorado — or to a nonresident employee performing services in Colorado must withhold state income tax. This applies to businesses, nonprofits, and government agencies of all sizes. Even if no tax is withheld in a given period, monthly and quarterly filers must still submit a zero return, or they will receive a non-filer billing notice.

Payment frequency is based on your annual withholding liability. Under $7,000 per year — pay quarterly, due the last day of the month after each quarter. Between $7,000 and $50,000 — pay monthly, due the 15th of the following month. $50,000 or more — pay weekly via EFT only, due the 3rd business day after each Friday. Pay online at Colorado.gov/RevenueOnline or via EFT at tax.colorado.gov/remit-withholding-tax.

For underpayments, pay the additional tax via EFT, Revenue Online, or by filing a second DR 1094 — do not include previously reported amounts on the corrected return. For overpayments within the same calendar year, deduct the excess from your next filing. If the year has ended, claim a refund on Form DR 1093 by January 31. After January 31, file Form DR 0137. For help, call (303) 205-8292, Monday through Friday, 8 AM to 5 PM MT.

Yes. All Colorado employers with an active UI account must file through MyUI Employer+ every quarter, even if no wages were paid and no premiums are owed. Failing to file results in a penalty of $50 per quarter, or $10 per quarter for new employers in their first four quarters. Do not skip a quarter assuming a zero return is
not needed.

For 2026, UI premiums apply only to the first $30,600 in wages per employee per year — up from $27,200 in 2025. New employers pay 3.05% for most industries or 6.285% for heavy construction. Experienced employers receive a computed rate each December based on their lifetime premiums paid and unemployment benefits charged to their account. The solvency surcharge remains in effect for 2026.

Yes. Employers who file and pay Colorado UI premiums on time qualify for up to a 5.4% FUTA credit, dropping the federal rate from 6.0% to just 0.6% on the first $7,000 of wages per employee per year. Late payments or unfiled returns can reduce or eliminate this credit entirely — turning a state compliance issue into a much larger federal tax bill.