Withholding Frequently Asked Questions
1. What number should I put on Employer’s State ID on the W-2?
Colorado employers should put the Colorado wage withholding account number assigned by the Colorado Department of Revenue on the federal W-2 form where it reads "Employer's State ID." This is an eight-digit number assigned by the Colorado Department of Revenue.
2. Does Colorado have a W-4 form?
The W-4 form is an Internal Revenue Service form. 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. For employer information regarding Colorado withholding tax, see the Colorado Income Tax Withholding Tables For Employers (DR 1098).
3. Where can I find the new withholding tables?
Income withholding tables will no longer be published. Employers are required to complete a Withholding Worksheet for new employees hired and new elections submitted on or after January 1, 2020. The Withholding Worksheet Calculator may assist employers with completing the Withholding Worksheet. Visit the Withholding Tables & Worksheet web page for more information.
4. I have a household employee. What are the employer's state tax reporting responsibilities?
A household worker is your employee therefore, as the employer you should apply for a Colorado wage withholding account by using the Withholding Account Application (CR 0100AP). Or, you may apply online through MyBizColorado. The withholding is submitted on a quarterly basis and a W-2 should be provided to the employee for tax purposes.
5. What is the Unemployment Insurance Surcharge?
The Colorado Unemployment Insurance Surcharge is related to unemployment insurance premiums paid by employers and is not related to any tax collected or administered by the Department of Revenue. Questions regarding unemployment insurance and this "solvency surcharge" must be addressed to the Colorado Department of Labor and Employment.
6. Where can I find my unemployment number?
If you need to obtain an unemployment insurance account number or you have other questions regarding unemployment insurance premiums and benefits, contact the Colorado Department of Labor and Employment (CDLE).