Withholding 5: Colorado Wage Withholding Tax Requirements - Department Of Revenue (Page 3 of 5) in pdf

ACH Types

Each applicant must indicate whether their EFT account should be designated as debit, credit, or both.



ACH Debit. An ACH Debit occurs when you authorize or give permission to the Department to debit your bank

account. This method allows the user to manage their payments by instructing the Department to withdraw a

certain amount from the account, and designate the tax type, the filing period, and the date to debit their

account. This service is available free of charge and applicants will receive an EFT Number and EFT PIN Code.



ACH Credit. An ACH Credit occurs when you contact your bank and ask them to "push" the payment to the

Department. ACH Credit is similar to "Bill Pay" services offered by banks. This method requires the user to

instruct their financial institution to deposit a certain amount of tax to the Department, designate the tax type,

and date to credit the amount to the department. Some financial institutions may charge a fee for this service.

Please check with your financial institution to determine if there is a fee associated with this payment method.

Applicants will receive an EFT Number and instructions on where to send the payment and the necessary

formatting of the ACH credit transaction.

EFT Returns and Payments

Paying withholding tax by EFT fulfills the employer’s filing requirement of a withholding return (DR 1094). Those

that make payments by EFT should not file a return through Revenue Online or mail a paper return. Filing a return

through Revenue Online or by paper in addition to your EFT payment may result in an erroneous bill being issued. If

zero tax is withheld for a tax period, a zero EFT payment can be transmitted to satisfy your filing requirement.

Exception: Filing by EFT does not fulfill the employer’s requirement to file Annual Reconciliation Returns and W-2s

to the Department. Submit EFT payments before 4:00 p.m. (MST) to credit your account on that date.



ACH Debit. To make a payment visit

and click on the Make a Payment

button. Enter your EFT Number and EFT PIN Code, tax type code, filing period end date, dollar amount owed,

and effective date of the payment. The other alternative is to call 877-265-6338 (877-COLOEFT).



ACH Credit. To make a payment using ACH Credit, you must contact your financial institution to initiate an

ACH credit to the Department’s account. Make sure your financial institution is able to create a TXP record,

which is a national banking standard. If your payment does not contain a TXP record or is incorrect, your

payment will be returned to you as unprocessed.

Paying Bill or Notices through EFT

EFT payments cannot be used to pay penalty, interest, or any delinquencies. To pay any penalty, interest, or

delinquencies, use Revenue Online or send the payment by check or money order with the bill voucher.

REVENUE ONLINE -- FILE AND PAY OPTIONS

Signing up for Revenue Online account access allows businesses to file returns, make payments, update mailing

addresses, review prior filings, view most letters sent to the business by the Department and much more. To file or pay

withholding taxes through Revenue Online, the employer will need a Colorado Account Number (CAN).Visit

to get started.

Please note: The most recent withholding amount that was remitted and processed or recent letter ID is required to

get access to Revenue Online. Do not use zeros for your withholding amount. If you attempting to gain access to

Revenue Online today and your most recent filing was completed in the last few days, it is likely that the filing has

not yet been processed and posted to your account. You may need to use a different amount or wait a few more

days before accessing.

Employers can choose to file returns and pay withholding taxes though Revenue Online. While logged in, users will

file a return and after filing the return, the employer will make an online payment by e-check or a credit card. There

is a third party processing fee when making payments through Revenue Online. Employers that do not have wage

withholding to report for a specific filing period may login and file a “zero” tax return through Revenue Online.

PAPER RETURN AND CHECK OR MONEY ORDER

If the withholding account was set up electronically, all withholding tax liabilities must be filed by EFT or through

Revenue Online. If an employer pays less than $50,000 and cannot file by EFT or through Revenue Online, the

Withholding Tax Return (DR 1094) must be completed and mailed, along with a check or money order, to the

Department postmarked by the due date of the return. Please write the business name, Colorado Account Number

(CAN), filing period and tax type on the check or money order you send. This process does increase the chance of an

error or problem and the use of electronic payment options are strongly recommended.

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Withholding 5: Colorado Wage Withholding Tax Requirements - Department Of Revenue Page 3

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