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.

Marital statuses

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.