The Colorado Department of Revenue is pleased that so many withholding tax filers (payroll companies and employers) are paying their tax with Electronic Funds Transfer (EFT).
The EFT transaction files the return and payment in one step! When you use EFT for withholding tax, there is no need to file a paper return or file a withholding return in Revenue Online. In fact, you will cause yourself problems when you pay withholding through EFT, then file a return.
When you pay withholding tax by EFT and file a return for the same period, you will be reporting the tax twice and a bill will be issued for the second tax return. NOTE: EFT payments for sales tax are different. A sales tax return must be filed even when the sales tax is paid through EFT because multiple tax jurisdictions are involved and the tax distribution must be reported.
Are you using Revenue Online for state withholding tax? When you file a withholding tax return through Revenue Online, pay by e-check or credit card.
Are you paying withholding tax with a check? Send your check in with form DR 1094, “W-2 Wage Withholding Tax Return,” found at www.TaxColorado.com under Forms, and Wage Withholding.