Employees/Independent Contractors

Employees/Independent Contractors

Federal
Internal Revenue Service
600 17th Street
Denver , CO   80202
(303)446-1675
There are many state and federal laws that are used to define an employment relationship and to determine whether an individual who performs services is an “employee” or an “independent contractor.” IRS Publication 15-A, “Employer’s Supplemenetal Tax Guide,” has more information on determining whether an individual is an independent contractor or an employee.

Link:  http://www.irs.gov/pub/irs-pdf/p15a.pdf

If you have employees, you must withhold tax from each wage payment or supplemental unemployment compensation plan benefit payment according to the employee’s W-4 and the correct withholding rate.

There are a variety of other employer responsibilities outlined in IRS Publication 15, “Employer’s Tax Guide,” which includes withholding tables.

Link:  http://www.irs.gov/pub/irs-pdf/p15.pdf

You must have a federal employer identification number (FEIN) when you are an employer. You will use this number to make your federal tax deposits, and when you file your employment tax returns. Other government agencies and business entities may also use FEIN’s. You can obtain your FEIN by filing a completed form SS-4 with the I.R.S., or call toll free 1(800) 829 4933 M-F 7:30 am -5:30 pm, or fax your request 24/7 to 1 (215) 516-3990.

Link:  http://www.irs.gov/pub/irs-pdf/fss4.pdf

If you have determined that your workers are independent contractors, you are not required to withhold or pay any taxes on their behalf. However, you must keep track of how much you pay them and file Form 1099 Miscellaneous for each person to whom you paid over $600 during the year.

Link:  http://www.irs.gov/pub/irs-pdf/f1099m02.pdf

Federal
U.S. Department of Labor
Employment Standards Administration
Denver District Office
1999 Broadway, Suite 2435
DENVER , CO   80201
(720)264-3231
Federal minimum wage must be paid all employees whether employed on an hourly, piecework, commission, time, task, training or other basis.

Link:  http://www.dol.gov/esa/whd/flsa/

State
Colorado Department of Labor & Employment
Labor Standards Unit
633 17th St
Denver , CO   80202
(303)318-8441
Fax: (303)318-8899
Overtime Pay: The Federal Fair Labor Standards Act and State law require at least 1 1/2 times the employee’s regular rate of pay must be paid for all hours worked over forty (40) in one work week. In addition, State law requires overtime work for any work after (12) consecutive hours.
State
Colorado Department of Labor & Employment
Unemployment Insurance Operations
251 East 12th Ave
Denver , CO   80203
(303)318-9100
(800)480-8299
An employer must pay unemployment insurance tax on wages paid to all employees, including corporate officers.

The Unemployment Insurance Tax Program provides employers with determination of employer liability and establishment of an employer account; notifying the employers of annual tax rates; and collection of taxes through quarterly employer reporting process.

Domestic employers, nonprofit corporations, and agricultural employers have different liability criteria based on amount of wages paid and the number of employees.
Use Form CR100 to register your business, be assigned an Unemployment Insurance (UI) Tax employer account number, and receive an initial UI tax rate assignment. This form will also establish a sales-tax license and a wage-withholding account with the Department of Revenue.

Link:  http://secure.cdle.state.co.us/CR100/

State
Colorado Department of Labor & Employment
Division of Workers Compensation
633 17th St
Denver , CO   80202
(303)318-8700
(888)390-7936
Fax: (303)318-8710
Workers’ Compensation is mandatory insurance that provides coverage for medical expenses and lost wages due to a job-related injury or occupational disease. The employer must pay the cost of coverage for employees. All employees must be covered beginning with the very first employee.
Corporate officers and members of a Limited Liability Company who are compensated must be covered unless they own at least ten percent of the business and they formally elect in writing to reject coverage. The election to reject coverage is filed with the insurance carrier.
Private
Pinnacol Assurance
7501 E. Lowry Blvd.
Denver , CO   80230
(303)361-4000
(800)873-7242
Fax: (303)361-5000
You can obtain workers’ compensation insurance from an independent insurance agent or Pinnacol Assurance. Pinnacol Assurance is NOT a state agency.
State
Colorado Department of Revenue
1375 Sherman St
Denver , CO   80261
(303)238-7378
Employers are required to have a Colorado withholding account and remit Colorado income taxes withheld if:

1) The compensation is subject to federal withholding for income tax purposes; and 2) Employees are Colorado residents (working inside or outside Colorado), or employees are nonresidents of Colorado performing services in Colorado.

Submit a completed “Colorado Business Registration” (CR 0100) to the Colorado Department of Revenue to open a withholding account. There is no fee for the withholding license.

Link:  http://www.revenue.state.co.us/fyi/html/withld05.html


NOTE:  See the “Employer Responsibilities” chapter of the Colorado Business Resource Guide for more Employer requirements.
http://www.state.co.us/oed/guide/
NOTE:  See EMPLOYER SIGN POSTING REQUIREMENTS

Employees/Independent Contractors

|
Federal
Internal Revenue Service
600 17th Street
Denver , CO   80202
(303)446-1675
There are many state and federal laws that are used to define an employment relationship and to determine whether an individual who performs services is an “employee” or an “independent contractor.” IRS Publication 15-A, “Employer’s Supplemenetal Tax Guide,” has more information on determining whether an individual is an independent contractor or an employee.

Link:  http://www.irs.gov/pub/irs-pdf/p15a.pdf

If you have employees, you must withhold tax from each wage payment or supplemental unemployment compensation plan benefit payment according to the employee’s W-4 and the correct withholding rate.

There are a variety of other employer responsibilities outlined in IRS Publication 15, “Employer’s Tax Guide,” which includes withholding tables.

Link:  http://www.irs.gov/pub/irs-pdf/p15.pdf

You must have a federal employer identification number (FEIN) when you are an employer. You will use this number to make your federal tax deposits, and when you file your employment tax returns. Other government agencies and business entities may also use FEIN’s. You can obtain your FEIN by filing a completed form SS-4 with the I.R.S., or call toll free 1(800) 829 4933 M-F 7:30 am -5:30 pm, or fax your request 24/7 to 1 (215) 516-3990.

Link:  http://www.irs.gov/pub/irs-pdf/fss4.pdf

If you have determined that your workers are independent contractors, you are not required to withhold or pay any taxes on their behalf. However, you must keep track of how much you pay them and file Form 1099 Miscellaneous for each person to whom you paid over $600 during the year.

Link:  http://www.irs.gov/pub/irs-pdf/f1099m02.pdf

Federal
U.S. Department of Labor
Employment Standards Administration
Denver District Office
1999 Broadway, Suite 2435
DENVER , CO   80201
(720)264-3231
Federal minimum wage must be paid all employees whether employed on an hourly, piecework, commission, time, task, training or other basis.

Link:  http://www.dol.gov/esa/whd/flsa/

State
Colorado Department of Labor & Employment
Labor Standards Unit
633 17th St
Denver , CO   80202
(303)318-8441
Fax: (303)318-8899
Overtime Pay: The Federal Fair Labor Standards Act and State law require at least 1 1/2 times the employee’s regular rate of pay must be paid for all hours worked over forty (40) in one work week. In addition, State law requires overtime work for any work after (12) consecutive hours.
State
Colorado Department of Labor & Employment
Unemployment Insurance Operations
251 East 12th Ave
Denver , CO   80203
(303)318-9100
(800)480-8299
An employer must pay unemployment insurance tax on wages paid to all employees, including corporate officers.

The Unemployment Insurance Tax Program provides employers with determination of employer liability and establishment of an employer account; notifying the employers of annual tax rates; and collection of taxes through quarterly employer reporting process.

Domestic employers, nonprofit corporations, and agricultural employers have different liability criteria based on amount of wages paid and the number of employees.
Use Form CR100 to register your business, be assigned an Unemployment Insurance (UI) Tax employer account number, and receive an initial UI tax rate assignment. This form will also establish a sales-tax license and a wage-withholding account with the Department of Revenue.

Link:  http://secure.cdle.state.co.us/CR100/

State
Colorado Department of Labor & Employment
Division of Workers Compensation
633 17th St
Denver , CO   80202
(303)318-8700
(888)390-7936
Fax: (303)318-8710
Workers’ Compensation is mandatory insurance that provides coverage for medical expenses and lost wages due to a job-related injury or occupational disease. The employer must pay the cost of coverage for employees. All employees must be covered beginning with the very first employee.
Corporate officers and members of a Limited Liability Company who are compensated must be covered unless they own at least ten percent of the business and they formally elect in writing to reject coverage. The election to reject coverage is filed with the insurance carrier.
Private
Pinnacol Assurance
7501 E. Lowry Blvd.
Denver , CO   80230
(303)361-4000
(800)873-7242
Fax: (303)361-5000
You can obtain workers’ compensation insurance from an independent insurance agent or Pinnacol Assurance. Pinnacol Assurance is NOT a state agency.
State
Colorado Department of Revenue
1375 Sherman St
Denver , CO   80261
(303)238-7378
Employers are required to have a Colorado withholding account and remit Colorado income taxes withheld if:

1) The compensation is subject to federal withholding for income tax purposes; and 2) Employees are Colorado residents (working inside or outside Colorado), or employees are nonresidents of Colorado performing services in Colorado.

Submit a completed “Colorado Business Registration” (CR 0100) to the Colorado Department of Revenue to open a withholding account. There is no fee for the withholding license.

Link:  http://www.revenue.state.co.us/fyi/html/withld05.html


NOTE:  See the “Employer Responsibilities” chapter of the Colorado Business Resource Guide for more Employer requirements.
http://www.state.co.us/oed/guide/
NOTE:  See EMPLOYER SIGN POSTING REQUIREMENTS
Colorado Office of Economic Development and International Trade (303) 892-3840 oedit.info@state.co.us
Colorado Office of Economic Development and International Trade (303) 892-3840 oedit.info@state.co.us
Colorado Office of Economic Development and International Trade (303) 892-3840 oedit.info@state.co.us
Colorado Office of Economic Development and International Trade (303) 892-3840 oedit.info@state.co.us