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Colorado, US - State Tax Calculation

Posted: Mon Jan 13, 2020 1:04 pm
by nth0mth0m
Hello there.

I am having issues with timetrex calculating the incorrect amount for Colorado State Income tax for a specific employee. Gross pay is 1,380.00 and has a filing status of "Married with 10 allowances - No Exempt" I have changed and even recalculated and regenerated paystub with no success. Timetrex is calculating $50 in taxes when the correct amount should be 0 according to the tables provided by the department of revenue.

Re: Colorado, US - State Tax Calculation

Posted: Tue Jan 14, 2020 5:51 pm
by shaunw
Colorado no longer considers allowances in 2020, so if the employee has 0 or 10 allowances it would result in the same tax calculation.

The Colorado State government has a Excel calculator on their website located here:
https://www.colorado.gov/pacific/sites/ ... -2020.xlsx

If I enter $1380/bi-weekly pay period, and Married status, it calculates exactly $50 just as you mentioned TimeTrex did also, so everything appears accurate to me.

Re: Colorado, US - State Tax Calculation

Posted: Wed Jan 15, 2020 10:39 am
by nth0mth0m
Thank you for the clarification. I re-read the withholding publication on the states website. It appears they allow you to use the "New" tables or the "Old" (prior to 2020). For timetrex is appears that the "New" calculation is the only possible way, which works just fine as long as we are compliant. Thank you for the info.