Colorado Tax
For Colorado residents, you specify the employee's status and exemptions.
Deltek Modification Date - 1/20/17
Enter the following field information for residents of Colorado on the Withholding grid on the Payroll tab of the Employee Info Center:
Supplemental Wages
The tax rate for supplemental wages for bonus runs is 4.63%.
Automatically Calculated Variables
Vision 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. It is determined by multiplying the number of exemptions by $4,050.
How Vision Calculates Tax
To calculate an employee's Colorado State tax, Vision does the following:
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Multiplies the employee's gross pay per pay period by the number of pay periods in a year to determine annualized gross wages.
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Subtracts the employee's allowance and annualized 401(k) and 125/Cafeteria plan contributions from the employee's annualized gross wages.
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Calculates the annual income tax using Tax Calculation Method 1.
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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. Vision then rounds the withheld amount to the nearest dollar.