DOR Taxation web site

Collect and File

You must withhold Colorado income tax from any compensation paid to any employee if:

  1. The compensation is subject to federal withholding for income tax purposes; and
  2. The employee is a Colorado resident (whether working inside or outside of Colorado), or the employee is a nonresident of Colorado performing services in Colorado.

The two methods to determine the amount to withhold are the Wage Bracket Method and the Percentage Method. Instructions on how to use each method can be found in the Withholding Tables for Employers (DR 1098).

 

Filing Methods
Withholding tax must be deducted and paid in whole dollar amounts. To determine filing frequency, estimate the amount of withholding tax that the business will expect to pay for all employees in one year. Based on that estimation the filing frequency for a new account will be as follows:

 

  Colorado wage withholding reported was Due Dates File Pay
Quarterly Filers less than $7,000 First quarter: April 30:
Second quarter: July 31
Third quarter: October 31
Fourth quarter: January 31
Revenue Online or by Electronic Funds Transfer  (EFT). No paper return required. Revenue Online (with transaction fees) or by Electronic Funds Transfer  (EFT) with no fees.
Monthly Filers at least $7,000 but not more than $50,000 On or before the 15th day of the following month.
For example, March is due by April 15.
Revenue Online or by Electronic Funds Transfer  (EFT). No paper return required. Revenue Online (with transaction fees) or by Electronic Funds Transfer (EFT) with no fees
Weekly Filers more than $50,000 On or before the third business day following that Friday. Always provide the department with a Friday date for the filing period ending date. Must file all payments by Electronic Funds Transfer (EFT). No paper return required. Electronic Funds Transfer  (EFT) with no fees.

Paying by Check? Make checks payable to The Colorado Department of Revenue. A DR 1094 return should accompany the check to avoid a billing notice or, on the "Memo" line or elsewhere on the check, write: Wage Withholding, the filing period date, and the Colorado Account Number.

NOTE: If you fail to file a return for any given reporting period, you will receive a delinquency notice with tax due. Please make sure to file your return with the correct tax due or file a zero return. File either through Revenue Online.