Annual Withholding Reconciliation
Revenue Online provides employers/payers with a simple and secure method for filing year-end W-2, 1099 and/or W2-G statements. NOTE: Employers or tax professionals who want to pay withholding tax by Electronic Funds Transfer may continue to make payments using EFT. However, the annual reconciliation must be filed, and using Revenue Online to do that is highly recommended. If paying additional tax or requesting a refund, submit the DR 1093 for W-2 withholding or the DR 1106 or 1099 withholding.
GETTING STARTED WITH REVENUE ONLINE
Step 1: Register to be a Withholding Submitter
Anyone who is going to submit W-2s, 1099s, or W-2Gs– whether a tax professional, tax service provider and/or a person who does the payroll at the business – must register. To register, go to Revenue Online at least five days before you plan to submit the file or type each W-2, 1099, or W-2G entry.
Click on the link Request Withholding Submitter Access.
Complete the requested fields.
A Confirmation will then pop up to confirm that the department has received the registration request.In most cases, the registration process is completed overnight; however, it may take up to five business days to complete.
When you have completed the registration process, you do not need to do it again. Each year when you submit your W-2s, 1099s, or W-2Gs in Revenue Online, you will use Step 2 and Step 3.
Step 2: Decide how you will report the year-end withholding statements
After you are signed up to be a Withholding Submitter in Revenue Online, the following are options for reporting year-end information. The options are divided by wage withholding and 1099/W-2G withholding.
Submit a manual withholding file on Revenue Online. You will type each form into Revenue Online. There is no limit on how many W-2s that can be entered. If you cannot finish entering all the W-2s, you may save what you have entered, close the session and return later to finalize the entries, OR
Submit a CDOR-EFW2 Withholding file attachment through Revenue Online. The file contains all accounts where the employer withheld Colorado tax. This method is mandatory for employers with more than 250 employees. W-2 filing specifications are available in FYI Withholding 6.
Submit a manual withholding file on Revenue Online. You will type each form into Revenue Online. There is no limit on how many 1099s/W-2Gs that can be entered. If you cannot finish entering all the forms, you may save what you have entered, close the session and return later to finalize the entries, OR
Submit an IRS Format 1220 Withholding file attachment on Revenue Online. Filing specifications for 1099s are available at www.irs.gov. This method is mandatory for entities with more than 250 payees. 1099 filing specifications are available in FYI Withholding 7.
Important Note: If you have more than 250 employees (W-2) or more than 250 recipients of 1099s/W-2Gs, you must use one of the two reporting methods above. Employers or institutions using the methods above should not send paper W-2 or 1099 statements to the department. Do not file form DR 1093 unless paying additional tax or requesting a refund.
Step 3: In Revenue Online, you will
Select Submit a Manual Withholding File (type in data for each W-2, 1099, or W-2G recipient), OR
Select Submit a Withholding File Attachment (with multiple entries in one CDOR-EFW2 file).
Follow the prompts in Revenue Online. Review the Hot Tips! provided at each step.
After you Submit the data, if your submission is processed, you will receive a confirmation code. Please print this page and keep it in your records.
Paper year-end statements
Although not recommended, employers or 1099 payers may submit paper statements along with DR 1093 or DR1106 if they have fewer than 250 employees/payees. However, the department encourages businesses or their tax providers to register in Revenue Online as a Withholding Submitter and use Revenue Online to report W-2 and 1099 annual reconciliation and submit reconciliation statements. NOTE: For 1099s, send only 1099 statements that list Colorado withholding.
IMPORTANT DUE DATES*
Annual pay cycle ends. If your status as an employer/payer ceases at any other time during the year, you will need to reconcile within 30 days of that time.
Furnish all W-2 Statements and/or 1099 documents to each employee/payee.
Any unpaid tax is due regardless of how you choose to provide annual reconciliation information. Report any balance due for W-2 withholding on a DR 1093. Report any balance due for 1099 withholding on a DR 1106.
If you are requesting a refund submit a DR 1093 for W-2 withholding and a DR 1106 for 1099 withholding.
Paper W-2s with accompanying Transmittal form (DR 1093) as required are due on this date.
Paper 1099 statements listing Colorado withholdings with accompanying Transmittal form (DR 1106) as required are due on this date.
Filing the information through Revenue Online extends the deadline one month (see next date).
MARCH 31 (this is a later deadline for those who use Revenue Online for Annual Withholding Reconciliation)
Type withholding entries or upload CDOR-EFW2 to Revenue Online.
Type withholding entries or upload IRS FORMAT 1220 file to Revenue Online.
*Due the next business day if the due date falls on a weekend
Questions? Call 303-205-8292.