Withholding 5: Colorado Wage Withholding Tax Requirements - Department Of Revenue (Page 4 of 5) in pdf

WITHHOLDING TAX NONFILER NOTICES

If an employer does not file a required return, an estimated tax due assessment may be issued. This estimated tax

assessment is based on the employer’s filing history. If there is no filing history, then an estimated tax amount will

be assessed. Even if the employer pays the estimated tax assessment, the employer must still file a return and pay

the appropriate amount of tax due.

ANNUAL INFORMATION RETURNS AND W-2 SUBMITTAL

In addition to reporting wage withholding tax throughout the year (weekly, monthly or quarterly), employers are

required to also submit an annual information return and W-2s to the Department. The Annual Wage and Tax

Statements (W-2s) must be filed with the Colorado Department of Revenue and furnished to the employee on or

before the last day of January. Employers can submit these statements to the department electronically or by

submitting paper copies.

Employers with more than 250 employees are required to file such statements electronically.

For more information on how to file annual reconciliation wage withholding statements, see publication FYI

Withholding 6, Methods of Filing Colorado Annual W-2 Tax Data.

CORRECTING RETURNS AND WITHHOLDING REFUND REQUIREMENTS

If you overpaid wage withholding taxes for any period in the current calendar year, if possible, you should take a

credit on a subsequent month’s Withholding Tax Return (DR 1094). The credit may be deducted from an EFT

payment, a return filed on Revenue Online, or a subsequent paper form DR 1094. To claim the credit, deduct the

overpayment from line 2 of your return. You may only deduct an amount that brings your return to zero for the

period on which you are reporting.

If you are unable to claim the credit on a subsequent DR 1094 within the calendar year of the overpayment, you may

request a refund by filing the Annual Transmittal of State W-2 Forms (DR 1093) on or before January 31. The

Department issues refunds of wage withholding only once a year. The DR 1093 will indicate the total amount of taxes

withheld in the prior year on employees’ W-2s and the total amount of withholding tax payments paid to the

Department. If the amount withheld and the amount paid results in additional taxes due or a refund (line 3A or 3B of

the DR 1093), the employer must file the DR 1093 with the Department by mailing a completed form to:

Colorado Department of Revenue

Denver, CO 80261-0009

If an employer files wage (W-2) withholding statements electronically through Revenue Online, the employer does

not need to submit a DR 1093 unless an amount appears on 3A (additional balance due) or 3B (a refund) of the

return.

If you are applying for a refund of wage withholding taxes remitted prior to your business filing the annual

reconciliation, please indicate the reason for the request on a Claim for Refund (DR 0137). Refund requests made

prior to the annual reconciliation will be denied unless an unusual circumstance is documented. For example, you

paid your federal withholding to the State of Colorado in error.

Note: Effective January 1, 2012, taxpayers who withheld from amounts paid and reported on a 1099 form should set

up a separate account to pay the 1099 withholding. For additional information, see FYI Withholding 7.

REFUNDS FOR PREVIOUS CALENDAR YEARS

To apply for a refund from a previous calendar year, the following is required:



A Claim for Refund (DR 0137) indicating the reason for the request.



An original or amended DR 1093 for the year the refund is being requested.



Copies of the employee’ W-2Cs with complete information verifying the change in the withholding amount.



Documentation showing how the refund amount was calculated.

Send the DR 0137 and requested documentation to:

Colorado Department of Revenue

Business Tax Section, Room 208

PO Box 17087

Denver, CO 80217-0087

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Withholding 5: Colorado Wage Withholding Tax Requirements - Department Of Revenue Page 4

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