Colorado (CO)

2019 SWT

Instructions for Colorado State tax rates.

 

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Colorado (CO)

Step 1: Load the state withholding rates

Single

Married

Step 2: Verify the tax calculation formula

Step 3: Verify the calculation settings

Step 4: Verify the pay code settings

Step 1: Load the state withholding rates

Use the amounts displayed in the following table to update the Calculation table with the state withholding rates and modifiers.

Single

Table 1: 2019 COLORADO STATE WITHHOLDING - SINGLE

Line No

Wages Not Over

Tax Amount

Tax Rates

1

3,800.00

0.00

0.00%

2

9,999,999.99

0.00

4.63%

 

Do this...

1. Open Connect Payroll > Organization > Calculation Tables.

2. Click Colorado Single Withholding Tax Rates.

3. Enter the Not Over amount for the first row.

4. Enter the Tax Amount.

5. Enter the Tax Rate.

6. When you press Enter, the cursor displays in the Tax Rate field.

The next row of information displays.

7. Repeat steps 1 to 6 until the calculation table looks like this...

Colorado Withholding - Single Rate

8. Click the Modifiers tab.

It will look like this when you’re done...

Colorado Withholding - Single Modifiers

2019Jan11

Married

Table 2: 2019 Colorado State Withholding - Married

Line No

Wages Not Over

Tax Amount

Tax Rates

1

11,800.00

0.00

0.00%

2

9,999,999.99

0.00

4.63%

 

Do this...

1. Open Connect Payroll > Organization > Calculation Tables.

2. Click Colorado Married Withholding Tax Rates.

3. Enter the Not Over amount for the first row.

4. Enter the Tax Amount.

5. Enter the Tax Rate.

6. When you press Enter, the cursor displays in the Tax Rate field.

The next row of information displays.

7. Repeat steps 1 to 6 until the calculation table looks like this...

Colorado Withholding - Married Rates

 

8. Click the Modifiers tab.

It will look like this when you’re done...

Colorado Withholding - Married Modifiers

2019Jan11

Step 2: Verify the tax calculation formula

Update the calculation formula to use the new formula to calculate the state withholding rates.  

Do this...

1. Open Connect Payroll > Organization > Calculation Formulas.

2. Select the Colorado State Withholding formula.

3. Click the Calculation Formula tab.

4. Click Select.

Why can't I click any buttons? Check the Restricted Fields button on the toolbar. If it looks like a locked padlock, you'll need to click on the Restricted Fields button to unlock the restricted fields.


Restricted Fields button on the toolbar

To learn more, see the help topic titled How do I edit a restricted field?

 

Select button

5. When you are prompted to replace the existing formula with master, click Yes.

Replace With Master

The Import Master form displays.

 

6. Select the Colorado State Withholding formula and then click OK.

 

Import Master List

The calculation formula that is saved in the application displays on the screen.

CO State Withholding Master Formula for 2018

7. Review the calculation formula carefully.

Note: Connect version 2018.11 does not include the 2019 master formula. You will need to copy and paste the CO State Withholding formula, as it is shown below, in the Formula field.

 

You’ll want to make sure the calculation formula in the Payroll application looks exactly like the calculation formula, shown below.

 

Var1=IIF(CurrentExemptions<6,Max(0,WagesCurrPer-(CurrentExemptions*Modifier1)),0)

Var2=IIF(CurrentExemptions>=6,Max(0,WagesCurrPer-Modifier2),0)

Var3=Var1+Var2

Result=Table(Var3)

 

 

When you're done, the Formula field should look like this...

Colorado State Withholding Master Formula for 2019

 

Does the formula in Payroll match the formula shown above?

Why can't I click any buttons? Check the Restricted Fields button on the toolbar. If it looks like a locked padlock, you'll need to click on the Restricted Fields button to unlock the restricted fields.


Restricted Fields button on the toolbar

To learn more, see the help topic titled How do I edit a restricted field?

 

9. Click Save.

You have finished updating the tax calculation formula for Colorado State Withholding.

2019Jan11

Step 3: Verify the calculation settings

Link the SWT calculation (Connect Payroll > Organization > Calculations) to the calculation formula, calculation table, and pay code type.

 

Colorado state withholding does not require this step.

Updated 02May2018

Step 4: Verify the pay code settings

Check the pay code that calculates the state withholding tax to make sure it is set up correctly and it will round amounts to the nearest dollar.

Do this...

1. Open Connect Payroll > Organization > Pay Codes.

2. Use the field titled Pay Code to enter the State Withholding Pay Code.

Usually, the pay code for state withholding tax is pay code 77-00.

3. Click to select the Employee tab.

4. Click to select the Employee subtab.

5. Click to select the checkbox titled Round Amounts to Nearest Dollar.

The Round Amounts to Nearest Dollar checkbox should be selected on the Employee subtab, like this...

 

Round Amounts to Nearest Dollar in Pay Codes

Note: This screenshot shows the Round Amounts to Nearest Dollar checkbox on the Employee subtab. The rest of the options on pay code 77-00 State Withholding Tax will be set up for your state's withholding tax and may not look exactly like the fields that are shown here.

6. Click Save (CTRL+S).

The state withholding pay code is set up correctly. You’re done!

2019Jan07