Colorado tax tables 2020 professional#

Colorado tax tables 2020 professional#

The reader should contact his or her Ernst & Young LLP or other tax professional prior to taking any action based upon this information. The reader also is cautioned that this material may not be applicable to, or suitable for, the reader's specific circumstances or needs, and may require consideration of non-tax and other tax factors if any action is to be contemplated. The information contained herein is general in nature and is not intended, and should not be construed, as legal, accounting or tax advice or opinion provided by Ernst & Young LLP to the reader. Debera Salam ( Kristie Lowery ( Kenneth Hausser ( Payroll News Flash.

Workforce Tax Services - Employment Tax Advisory Services ( Phone conversation with Colorado Department of Revenue representative and supervisor.)įor additional information concerning this Alert, please contact: The revised 2021 withholding worksheet is expected to be published by the end of January and will be available here. The Department told us that, effective January 1, 2021, employers should compute Colorado income tax withholding at 4.55%. Accordingly, taxpayers can recover any 2020 excess income tax withholding due them when filing their 2020 Colorado personal income tax return. In its frequently asked questions about the Colorado personal income tax, the Colorado Department of Revenue states that the new Colorado income tax rate is 4.55% beginning in the 2020 tax year.

Income tax withholding change applies to wages paid on and after January 1, 2021 ( See EY Tax Alert 2020-2730.)Īs required under Proposition 116, on December 31, 2020, Governor Jared Polis issued Executive Order D 2020-302 declaring the reduction in the tax rate. Colorado income tax withholding rate is decreased to 4.55% effective January 1, 2021Īs previously reported, in November 2020 Colorado voters approved Proposition 116, which lowers the state's personal and corporate income tax from for 4.63% to 4.55% effective retroactive to tax years commencing on or after January 1, 2020.