Withholding Tax Electronic Funds Transfer

Employers who pay more than $50,000 withholding tax per year are required to pay by EFT. Employers who do not meet this requirement are encouraged to use EFT as it reduces processing delays and errors. If payment is submitted electronically using EFT, you do not need to file a wage withholding return (DR 1094).

You can sign up for EFT through your Revenue Online account or by using the Authorization for Electronic Funds Transfer (EFT) For Tax Payments (DR 5785). By signing up in Revenue Online, you can use your EFT Number and PIN Code the next business day. For more information on how to register, please visit: Electronic Funds Transfer (EFT).

Colorado’s EFT program offers two methods of electronic payment, ACH Debit and ACH Credit. You may choose either or both. We offer an ACH debit service which is accessible through the Web or telephone, or you may choose to initiate ACH credit payments through the banking system using a standard format. Both options are free, but you must be registered with the department to use either service. You may incur fees or charges from your financial institution. Detailed information on ACH Debit and Credit is available at Electronic Funds Transfer (EFT).