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Some municipalities in the Denver area have an Occupational Privilege Tax. The rates may be different for different municipalities. In Denver, the rules are as follows: An employee who earns at least $500 in a month from performing services in Denver is liable for the Employee OPT, which is to be withheld from their wages at the rate of $5.75 a month and remitted to Denver by the employer. An employer is liable for paying Business OPT at the rate of $4.00 a month per each employee who is liable for Employee OPT. In addition, an employer is liable for paying the Business OPT at the rate of $4.00 per month on each owner, partner, or manager performing services in Denver, for any month in which the business operates in Denver. To set up the OPT tax, you must first do the calculation to find the percentages. $5.75 is 1.15% of $500.00 or 0.0115. $4.00 is 0.8% of $500.00 or 0.008. You will need to set up a local tax item for the employee deduction and an employer accrual for the employer match. Note: Class, Sub and Nature of Work do not apply to this payroll item.
Set up Denver Area OPT
To set up the OPT deduction:
To set up the company portion:
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