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:

Field	Description
Status	Enter the marital status claimed by the employee on federal Form W-4. Options are: S: Single M: Married
Exemptions	Enter the total number of allowances claimed by the employee on federal Form W-4. This figure includes: Personal exemptions for self and spouse not claimed on other Form W-4. Additional exemptions for age and blindness. Exemptions for dependents.
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 4.63%.

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:

1. Multiplies the employee's gross pay per pay period by the number of pay periods in a year to determine annualized gross wages.
2. Subtracts the employee's allowance and annualized 401(k) and 125/Cafeteria plan contributions from the employee's annualized gross wages.
3. Calculates the annual income tax using Tax Calculation Method 1.
4. 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.