What is State Tax Withholding Form?
A state W-4 Form is a tax form that explains to employers how much of each paycheck stub should be taken out to pay state taxes. It serves the same purpose as the federal W-4 form by informing your employer of your withholding preferences.
The federal W-4 form is also accepted by many states.
Upon starting a new job – or every year to make sure their allowances are fulfilled – employees must fill out a W-4 state form unless they work in a state with no state income tax.
Does Colorado have a State Tax Withholding Form?
Yes, Colorado has a state tax withholding form. Workers fill out this form to let their employers know how much state income tax they want to withhold from their paychecks
Colorado Employee Withholding Certificate (form DR 0004) completion is voluntary starting in 2022. When a worker in Colorado submits a DR 0004, their employer is obligated to determine their withholding according to the information provided.
If an employee doesn’t submit a DR 0004, an employer must use the information provided on the employee’s W-4 to determine the amount of Colorado withholding due.
How do I 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.
How to fill out a state tax withholding form?
Enter personal details
- Your name
- Social Security number
- Tax status
Account for various jobs
Follow the rules for more accurate withholding if you have several jobs or file jointly and your spouse works.
List Your Dependents (Children Included)
You can multiply your children and dependents by the credit amount. If you need more taxes taken out of your income to lower your tax burden, you may also not claim dependents.
You can specify that you need more tax withheld or that you plan to use deductions in addition to the standard deduction when filing your taxes.
Sign and date your W-4
Submit the signed form to your company’s HR or payroll department. Payroll systems may allow online submission.
Also, See: Withholding Allowances