State Tax Withholding Form

What is a State Tax Withholding Form?

A State Tax Withholding Form is the documentation used in the U.S. to regulate the amount of state income tax withheld from an employee’s salary. The employer provides this form to employees when they start a new job or when the employee requests changes in their state tax withholding.

Does Colorado have a State Tax Withholding Form?

Yes, Colorado has a state tax withholding form. Employees fill out this form to let their employers know how much state income tax they want to be deducted from their paycheck stubs.

Colorado Employee Withholding Certificate (form DR 0004) completion has started voluntarily in 2022. When an employee in Colorado submits a DR 0004, their employer must determine their withholding according to the information provided.

If an employee doesn’t submit a DR 0004, an employer must use the information on the employee’s W-4 to determine the amount of Colorado withholding due.

How do you fill out a State Tax Withholding Form?

The IRS and state receive payroll taxes from employers based on employees’ W-4s (if applicable). Form W-4 data partially determines your tax liability or refund.

So, how do you fill out a State Tax Withholding Form? Below are some rules:

Enter your Details: Your Name, Address, Social Security Number, and Tax Status.
Account for Various Jobs: Follow the rules for accurate withholding if you have multiple jobs.
List your Dependents (Including children): You can multiply your dependents, including the children, by the credit amount. You may also not claim dependents if you need more taxes to be taken out of your income to lower your tax liability.
Accommodate your Withholding: Specify that you need more tax withheld.
Sign and Give a Date for your W-4: Submit the signed form to your company’s HR or payroll department.