Appendix D-Tax Setup Information > Colorado State Tax

Colorado State Tax

Note: For records on 5-2-2 Payroll Records that have the Payroll Type of 2—Bonus, Sage 100 Contractor calculates state income tax using the published flat-rate.

Colorado does not have its own W-4 form. The employer should rely on the federal withholding exemption certificates (Federal Form W-4). Colorado payroll taxes are rounded to the nearest dollar.

Employees who work in Colorado can select from the following marital status options.

Status

Description

1-Single

Single

2-Married

Married

3-Head of Household

Single

4-Married/Separate

Single

5-Married/Joint

Married

To set up payroll calculations on an employee for Colorado State Tax:

1 Open 5-2-1 Employees.
2 Using the data control, select the employee.
3 Click the Calculations tab.
4 In the Marital column, in the cell of the Colorado Income Tax row, enter the corresponding marital status number.
5 In the Std Allow column, in the cell of the Colorado Income Tax row, enter the number of exemptions/allowances claimed.
6 On the menu bar click File, then click Save.
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