Colorado recently published an updated version of DR 1098, Colorado Income Tax Withholding Tables for Employers. This guide provides instructions to employers on how to calculate and file income withholding tax reports, along with withholding tables and sample documents for employers to review.
The changes to this most recent version of DR 1098 were made to the withholding tables for the remainder of 2018. The Tax Cuts and Jobs Act of 2017 triggered changes to the calculation of withholding amounts, and also affected the existing withholding tables that were in effect beginning January 1, 2018. As a result, DR 1098 was updated with new withholding tables that are effective as of April 1, 2018, to the end of calendar year 2018.
Please note that these tables include a “catch-up” calculation that is meant to ensure the changes to the federal tax law are less likely to result in under-withholding for Colorado employees.
To review this publication in full, please click here.
