Colorado Updates Withholding Tables Due to Federal Tax Reform
Effective for wages paid on or after April 1, 2018, the Colorado Department of Revenue (DOR) has revised the wage-bracket and percentage method withholding tables [Pub. DR 1098, Colorado Income Tax Withholding Tables for Employers, rev. 3-30-18].
The DOR usually revises withholding tables for odd-numbered years only. However, the tables were revised this year because of the federal Tax Cuts and Jobs Act (Pub. L. 115-97), explains the DOR in a news release. The DOR recommends using the updated tables for the remainder of calendar year 2018 in order to ensure more appropriate withholding for employees. The withholding tables will be updated again at the end of the year for 2019 through 2020.
Be sure to check out all the coverage of federal tax reform and its impact on states in PayState Update.