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DRP 5782 (08/98)

COLORADO DEPARTMENT OF REVENUE

ELECTRONIC FUNDS TRANSFER (EFT) PROGRAM

FOR WAGE WITHHOLDING

The Colorado Department of Revenue requires employers with annual wage withholding liabilities greater than

$50,000 to file and pay wage withholding taxes electronically through Electronic Funds Transfer (EFT). Other

employers may also choose to file electronically. Electronic payments offer you a number of benefits:

•

The cost and time to write checks is eliminated.

•

You know exactly when your account will be debited.

•

You are assured that the funds are received on time, every time.

•

You do not need to file a paper return for wage withholding.

•

You may also register to pay other taxes electronically. For all other taxes except estimated

income, estimated severance, corporate income extensions, and PUC fixed utility fees you will

still need to file a tax return.

ELECTRONIC PAYMENT OPTIONS

Colorado's Electronic Funds Transfer program offers two methods for electronic payment:

•

Automated Clearing House Debit (ACH debit)

•

Automated Clearing House Credit (ACH credit)

AUTOMATED CLEARING HOUSE DEBIT

To remit taxes via ACH debit, simply place a call to a toll-free number and enter four pieces of information: your

EFT identification number, the tax type being paid, the tax period being covered, and the amount owed. The system,

in return, provides a reference number as proof of payment. The phone call is placed on the due date; the funds are

withdrawn from your account the following day. Sample instructions for an ACH debit phone call are included in

this pamphlet. The Department of Revenue pays for the transaction.

AUTOMATED CLEARING HOUSE CREDIT

To initiate an ACH credit, instruct your bank to transfer funds from your account to the Department of Revenue's

depository account. The ACH credit must be accomplished utilizing the tax payment (TXP) convention within the

addendum record of a CCD+ application. The ACH credit must be initiated on the due date; the funds are trans-

ferred to be received the next day by the Department of Revenue. The TXP addendum convention has been pro-

vided in this guide. Your bank will charge you for the transaction. Since some banks will not process ACH credits,

contact your bank for more information.

HOW TO ENROLL

To participate in the EFT program, you must complete an "Authorized Agreement for Electronic Funds Transfer

(EFT) for Tax Payments" (DR 5785). The Department of Revenue encourages the use of ACH debit (by toll-free

number). If you are registering for ACH debit, include a voided check or deposit slip from the bank account that you

will be using for this service. Please mail or fax the completed form to:

Colorado Department of Revenue

Denver, CO 80261

FAX (303) 866-3112

Form Dr 5782 - Electronic Funds Transfer (Eft) Program For Wage Withholding Instructions - 1998

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