Occupational Privilege Tax (OPT) - Denver, Aurora, Glendale, Greenwod, Sheridan

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While many states and communities are trying to stimulate employment/job growth; Denver and many of the surrounding communities have a local payroll tax referred to as the Occupational Privilege Tax (OPT) which is essentially a per employee head tax on workers.


Denver Occupational Privilege Tax (OPT)

In Denver for example, an employee must pay $5.75 per month and their employer an additional $4.00 per month, just to have the "privilege" to perform work in the county.  Denver has a $500/month wage threshold which must be reached to determine if the employee is considered taxable in a given month.  Businesses often are confused by the tax as the tax is imposed on businesses performing work in the City regardless if their main location is outside of the City/County lines.  Another issue that stumps even the most prudent revolves around the $4.00 per month a business must pay for each owner, partner, or manager engaged in business in Denver regardless of whether or not they are treated or paid as employees.  To Learn more about Denver OPT read the FAQ page here along with the Denver Treasury Division's Business Taxes page here and finally the official OPT tax guide here.

If you have employees working all across the metro area, tracking your employee's hours/earnings by work location is essential as the neighboring communities of Aurora, Glendale, Greenwood, & Sheridan each also have their own respective local taxes. 
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Aurora Occupational Privilege Tax (OPT)

This functions much the same generally; the gross earnings test is $250 however and the tax is $2.00 per month for both the employee and the employer.  To Learn more about Aurora OPT visit the agency page here.

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Glendale Occupation Privilege Tax (OPT)

Glendale has an earnings threshold of $750/month and the fee is $5.00 for the employee and a $5.00 employer match.  You can learn more by visiting the agency directly here.

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Greenwood Village Occupational Privilege Tax (OPT)

Greenwood Village has a $250 earnings threshold which must be met before a $2.00 per month employee tax and employer matching $2.00 tax is imposed.  To see the details for this agency visit here.

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City of Sheridan Occupational Privilege Tax (OPT)

The City of Sheridan has a $500 earnings threshold which must be met before a similar $3.00 per employee tax & $3.00 employer matching tax is imposed monthly.  More details found on the cities website here.

If you would like assistance registering for any of these agencies, please contact your account manager to discuss.

If you are relying on QuickBooks©, please proceed with caution as the QB payroll application  appears to have issues with these local tax calculations.
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