Annual Reconciliation | Frequently Asked Questions

1. What is Annual Reconciliation?

2. What are the due dates?

DECEMBER 31

Annual pay cycle ends. If your status as an employer/payer ends at any other time during the year, you will need to reconcile within 30 days of that time.

JANUARY 31

In addition to reporting wage withholding tax throughout the year (weekly, monthly or quarterly), employers are required to also submit an annual information return and W-2s to the Colorado Department of Revenue. W-2s must be filed with the Department and furnished to the employee/payee on or before the last day of January. A penalty may be assessed for each W-2 that is filed late. All employers must submit wage and tax statements to the Department no later than January 31.

NOTE: The due date is next business day if the due date falls on a weekend.

3. What are the steps?

Step 1

Register to be a Withholding Submitter

Step 2

Decide how you will report Year-End Withholding Statements

Step 3

Submit year-end statements in Revenue Online

 

Although not recommended, employers or 1099 payers may submit paper statements along with DR 1093 or DR 1106 if they have fewer than 250 employees/payees. However, the Department encourages businesses or their tax providers to register in Revenue Online as a Withholding Submitter and use Revenue Online to report W-2 and 1099 annual reconciliation and submit reconciliation statements.

NOTE: For 1099 statements, send only 1099 statements that list Colorado withholding. 

4. How do you submit withholding statements?

Visit the How to Submit Withholding Statements web page for more information. 

5. Can you send statements with truncated Social Security Numbers?

No, the Department requires that the SSN be revealed in full on the W-2 so that our systems can process the information. Masked or truncated W-2 forms will not be processed. The Colorado Department of Revenue (CDOR) is aware of the recent IRS change to allow for the masking or truncation of part of the Social Security Number (SSN) on the federal W-2 form.

The Department collects personally identifiable information (PII) and other information only as necessary to administer our programs. The information provided by employers will be used only for that purpose. For more information on how we safeguard PII visit our Taxpayer Security Safeguards page.

6. How do gaming establishments file income tax withholding?

Gaming establishments (W-2G issuers) must file withholding taxes on behalf of taxpayers using the Backup Withholding Tax Return - Gaming (DR 1091).