Colorado Tax
For Colorado residents, you specify the employee's status and exemptions.
Deltek Modification Date - 2/22/19
Enter the following field information for residents of Colorado on the Withholding grid on the Payroll tab of the Employees hub:
Supplemental Wages
The tax rate for supplemental wages for bonus runs is 4.63%.
Automatically Calculated Variables
DPS automatically computes the allowance, which is used in determining the net income tax.
Allowance
The allowance is based on the number of exemptions in the Exemptions field. The value of one allowance is $4,200. The total amount of an employee's exemption is determined by the following table.
Number of Withholding Allowances | Allowance Amount |
---|---|
0 | $0 |
1 | $4,200 |
2 | $8,400 |
3 | $12,600 |
4 | $16,800 |
5 | $21,000 |
6 | $25,200 |
7 | $25,200 |
8 | $25,200 |
9 | $25,200 |
10 | $25,200 |
Over 10 | Use the amount for 10 allowances in the appropriate payroll period. |
How DPS Calculates Tax
To calculate an employee's Colorado State tax, DPS does the following:
- Multiplies the employee's gross pay per pay period by the number of pay periods in a year to determine annualized gross wages.
- Subtracts the employee's allowance and annualized 401(k) and 125/Cafeteria plan contributions from the employee's annualized gross wages.
- Calculates the annual income tax using Tax Calculation Method 1.
- Divides the annual income tax by the number of pay periods in a year to determine the amount to be withheld for the pay period. DPS then rounds the withheld amount to the nearest dollar.