Colorado Annual Withholding Allowance

The Colorado form includes an annual withholding allowance. However, the payroll process can determine this amount in multiple ways.

The Tax Withholding card determines the amount in this order.

1. Captures the value as entered on the Colorado component of the tax card.

   To ensure accurate withholding, whenever an employee wants to change their Federal withholding, they must:

   1. Update the Federal tax withholding on their Tax Withholding card.

      This can be either manually through Self Service or performed by their Payroll Administrator.

   2. Use Self Service to update their Annual Withholding Allowance on the Colorado component of the card.

2. If no value was entered, or if the card doesn't have a Colorado component, the payroll process derives the amount based the person's latest federal filing status since 2020.

3. If the person hasn't updated their federal filing status since 2019, the process uses the default amount.

   This default can change yearly. For further info, see Colorado's state tax authority website.