USA State Payroll Rates + Resources: State of Colorado: Filing State Income Taxes, W2s, and 1099s

Purpose

The purpose of this documentation is to outline the processes and requirements associated with filing state income taxes as well as how to file W-2s and 1099s, if needed, in the state of Colorado.

State Income Tax Withholding 

Colorado does not have an equivalent state form to the federal W-4. This is because the state income tax is based on the taxpayer's federal taxable income. An employer should use the information from the federal W-4 form to calculate the state wage withholding amounts.

Employers are required to keep copies of completed federal W-4 forms for their employees in their files. The forms serve as verification that state income taxes are being withheld according to the employee’s instructions and needs to be available for inspection if the state requests it. 

Form W-4 is valid until the employee provides a new one. However, employees who claim exemption from withholding must renew the exemption annually by filing new Forms W-4 by February 15th of each year. 

State Income Tax Withholding Reporting and Deposits

A withholding tax return must be filed through Revenue Online. 

If no taxes have been withheld during the filing period, a return reporting zero tax withheld must be filed. When the due date falls on a weekend or holiday, taxes are considered timely if they are paid on the first business day following the due date.

Frequency
Look-back Wage Withholding Threshold
Due Dates
Quarterly filers
< $7,000
Last day of the month following the close of the calendar quarter.
Monthly filers
$7,000 to $50,000
On or before the 15th day of the following month.
Weekly/frequent filers
> $50,000
On or before the third business day following any Friday.

Payments can be made by credit card and e-check via Revenue Online, or EFT.

Employers who withhold more than $50,000 of withholding tax annually must file all payments by Electronic Funds Transfer (EFT).

Important!

If you are a Weekly/Frequent Filer, there is one exception to the payment and reporting schedule outlines above: 

At the end of the year, weekly/frequent filers must make a final transmission that includes all taxes withheld for all payrolls through December 31st. Therefore, December 31st will be the filing period ending date for this transmission, even if it is not a Friday. 

The payment transmission is due three business days after December 31st.

W-2 and 1099 Forms 

The DR 1093 Annual Transmittal of State W-2 Forms should be filed in January for withholding taxes reported on W-2s for the prior calendar year. 

Most entities are required to file an Annual Withholding Transmittal. Attach this form to the total withholding statements (W-2s) that were furnished to each payee:

  • If you use the electronic method for filing your W-2 forms (Revenue Online), which is mandatory for an employer with more than 250 recipients, submit this form if an amount appears on 3A or 3B. Mail this form to Colorado Department of Revenue, Denver, CO 80261-0009. 

  • If you file paper W-2 statements (fewer than 250 recipients) you must always attach this form before submitting documents.

This form must be postmarked on or before the last day in January following the end of the year in which withholdings were made.

Should either due date fall on a weekend or holiday, it will be extended to the next business day. 

The DR 1106 Annual Transmittal of State 1099s should be filed in January for withholding taxes reported on federal Form 1099.

Any 1099 statements you distribute that contain Colorado state withholding must be sent to the department. Attach this form to the total withholding statements (1099s) that were furnished to each payee:

  • if you use the electronic method for filing your 1099 forms (Revenue Online), which is mandatory for an employer with more than 250 recipients, submit this form only if an amount appears on 3A or 3B. Mail to Colorado Department of Revenue, Denver, CO 80261-0009.

  • if you file paper 1099 statements (fewer than 250 recipients), you must always attach this form before submitting documents.

This form must be postmarked on or before the last day in January following the end of the year in which withholdings were made.  

For further details, see the Colorado Income Tax Withholding Tables for Employers.