Colorado Withholding Tax

What is Colorado Withholding Tax?

Withholding tax is the amount of employee’s pay withheld by the employer and sent directly to the government as partial payment of state income tax.  The amount of withholding tax depends on the employee’s income.  The Colorado state income tax is 4.63%. Therefore, the withholding tax should be the same as the state income tax.

Employees do not need to take any action.  The employers/businesses will need to deduct the withholding tax from employee’s paycheck and submit and file the withholding tax to Colorado Dept of Revenue.

How much is Colorado Withholding Tax?

Since Colorado withholding tax withheld is used to pay for employee’s Colorado state income tax, the withholding tax should correlate with state income tax bracket.  The Colorado state income tax rate is 4.63%.  The withholding tax should be the same as state income tax rate.

State Year  State Income Tax Rate Withholding Tax Rate
Colorado 2015 4.63% 4.63%

How to File Colorado Withholding Tax?

Employees do not need to do anything.

Employers/Businesses need to register withholding tax account with Colorado Department of Revenue.  Depending the size of the company, every three months, the employers have to file a quarterly withholding reports and submit withholding tax to the Department of Revenue.  Most small businesses need to file quarterly while larger businesses need to file more frequently.

Colorado Withholding Tax Forms

How to Register for Colorado Withholding Tax?

Businesses with employees will need to register for Colorado Withholding account. The easiest and fastest way to register for Withholding tax is online.

Click here to Register for Colorado Withholding Tax.

When to File and Deadlines for Colorado Withholding Tax Return

Generally, Colorado Withholding Tax returns have to be filed every three months, ending on March 31 (Q1), June 30 (Q2), September 30 (Q3) and December 31 (Q4). Typically, the deadline to mail Colorado Withholding Tax return is the last day of the following month.

Quarter Months Deadline
Q1 January - March April 30
Q2 April - June July 31
Q3 July - September October 31
Q4 October - December January 31

Colorado CO Withholding Tax Contacts and Address:

For more information or help on Colorado Withholding Tax, please use the contact information below

Website Colorado Withholding Tax
Telephone 303-238-7378
Address Colorado Department of Revenue
1375 Sherman Street
Denver CO 80261

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