Table of Contents
The Colorado W-2 Wage Withholding Tax Return, commonly referred to as the DR 1094 form, plays a vital role in the state’s tax system. Employers utilize this form to report the total amount of Colorado income tax withheld from employee wages throughout a specified filing period. This information is crucial, as it ensures that the state collects the appropriate taxes owed by employees based on their earnings. The form requires employers to provide details such as their account number, the period for which they are reporting, and the total tax withheld. Additionally, it addresses potential overpayments, allowing employers to apply credits on future returns or request refunds if necessary. The DR 1094 also includes important instructions for calculating penalties and interest for late submissions, emphasizing the need for timely filing. Employers can file electronically through the Revenue Online platform or opt for paper submissions, depending on their preferences. Understanding the nuances of this form is essential for maintaining compliance and avoiding unnecessary penalties.
Key takeaways
Filling out the Colorado W-2 Wage Withholding Tax Return (Form DR 1094) is essential for employers to report income taxes withheld from employees. Here are key takeaways to keep in mind:
- Purpose: This form is used exclusively to report Colorado income taxes withheld from employee wages.
- Filing Frequency: Employers must be aware of their filing frequency based on the amount of tax withheld. This can vary from monthly to annually.
- Online Payment Options: Employers can pay taxes online through Revenue Online using e-check or credit card. Electronic Funds Transfer (EFT) is also an option.
- Zero Returns: If no taxes were withheld during the filing period, a zero return must be filed to avoid unnecessary billing from the Department of Revenue.
- Amending Returns: If there is an overpayment in a previous period, employers can claim a credit on a future return within the same calendar year.
- Penalties: Late filings incur penalties, calculated based on how overdue the return is. This can add up to 12% maximum.
- Interest on Late Payments: Interest may be charged for late payments, and the calculation should follow specific guidelines provided in the instructions.
- Mailing Instructions: When mailing the form, checks or money orders should be made payable to the Colorado Department of Revenue, with clear identification of the account number and tax period.
- Resources: Employers can access additional information, forms, and guidance on the official Colorado Department of Revenue website.
By understanding these key points, employers can navigate the W-2 Colorado form efficiently and ensure compliance with state tax regulations.
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Dos and Don'ts
When filling out the W-2 Colorado form, it is essential to be thorough and accurate. Below is a list of things you should and shouldn't do to ensure compliance and accuracy.
- Do review the instructions carefully before starting the form.
- Do ensure that all amounts entered are accurate and correspond to your payroll records.
- Do file your form on time to avoid penalties.
- Do use the correct filing period and ensure it matches your defined frequency.
- Don't forget to include your Colorado business account number; do not use your FEIN or EFT number.
- Don't submit a paper form if you have already paid via Electronic Funds Transfer (EFT).
- Don't ignore the need to file a zero return if no taxes were withheld during the period.
- Don't claim an overpayment without following the correct procedures for credit on future returns.
File Specs
| Fact Name | Description |
|---|---|
| Form Purpose | The Colorado W-2 Wage Withholding Tax Return (DR 1094) is used by employers to report state income taxes withheld from employee wages. |
| Governing Law | This form is governed by the Colorado Revised Statutes, specifically Title 39, Article 22. |
| Filing Frequency | Employers must file the DR 1094 based on their defined filing frequency, which can be monthly, quarterly, or annually. |
| Due Date | The due date for filing the form is typically the last day of the month following the end of the reporting period. |
| Electronic Filing | Employers can file the DR 1094 electronically through the Colorado Department of Revenue’s Revenue Online platform. |
| Zero Returns | If no taxes were withheld during the filing period, a zero return must be filed to prevent unnecessary billing. |
| Overpayment Credits | Employers can claim a credit for overpayments on future returns within the same calendar year. |
| Penalty and Interest | Late filings may incur penalties and interest, calculated based on how far past the due date the return is submitted. |
| Contact Information | For assistance, employers can call the Colorado Department of Revenue at (303) 238-7378 or visit their official website. |