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.
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About the Author
Paul Ogawa is a Junior Regulatory Counsel at Sovos Compliance. As part of the Regulatory Analysis team, his main areas of focus are state and federal tax withholding, the Affordable Care Act (ACA), and Canadian tax information reporting. Prior to Sovos, Paul worked as a litigation attorney in Boston area law firms, representing clients in insurance subrogation claims, family law matters, and employment disputes. Paul is a member of the Massachusetts Bar, earned his B.A. from Brandeis University and his J.D. from the Suffolk University Law School.More Content by Paul Ogawa