Colorado Tax
For Colorado residents, you specify the employee's status and exemptions.
Deltek Modification Date - 2/26/21
Enter the following field information for residents of Colorado on the Withholding grid on the Payroll tab of the Employees hub:
Field | Description |
---|---|
Status |
Enter the marital status claimed by the employee on federal Form W-4. Options are:
|
Exemptions | Colorado’s tax calculations do not use the Exemptions field. |
Other Exemptions | Colorado’s tax calculations do not use the Other Exemptions field. |
Supplemental Wages
The tax rate for supplemental wages for bonus runs is 4.55%.
Automatically Calculated Variables
Vantagepoint automatically applies a deduction of $8,000 if the employee's status is married filing jointly (M), or $4,000 otherwise.
How Vantagepoint Calculates Tax
To calculate an employee's Colorado State tax, Vantagepoint 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. Vantagepoint then rounds the withheld amount to the nearest dollar.
Parent Topic: State and Local Tax Fact Sheets