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|
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
|Form Number||Form Description|
|Form IRS-W4||Withholding Certificate (uses IRS)|
|Form DR-1094||Quarterly Withholding Tax Return|
|Form CR100||Withholding Tax Registration|
|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|
|Address||Colorado Department of Revenue|
|1375 Sherman Street|