How to Pay/Remit Withholding Tax

Online Payment in Revenue Online

Payment methods for withholding tax depend on how much total tax is withheld annually.
 
Colorado Wage Withholding Reported Annually
Filing Frequency
Payment Method
less than $7,000
Quarterly Filers
Revenue Online e-check or credit card (with transaction fees) or by Electronic Funds Transfer (EFT) in Revenue Online with no transaction fees. No paper return required when paid online.*
at least $7,000 but not more than $50,000
Monthly Filers
Revenue Online e-check or credit card (with transaction fees) or by Electronic Funds Transfer (EFT) in Revenue Online with no transaction fees. No paper return required when paid online.*
more than $50,000
Weekly Filers
Electronic Funds Transfer (EFT) in Revenue Online is required (no transaction fees).
 

Electronic Funds Transfer Tax Type

Electronic Funds Transfer (EFT) now has an additional Tax Type (01130), Wage Withholding Bill Payment. This tax type should be used when paying a bill, as it is specifically for withholding penalty and interest bills.

When paying with this Tax Type code by EFT, a return will not post for that amount. The payment will go towards outstanding balances only.

Payment When Filing via a Paper Return

To ensure your payment is posted to your tax account, you must include the eight-digit Colorado Account Number (CAN) on your check or money order. 

Omitting your CAN may delay processing and/or cause the account to have a balance due, which will result in your business receiving a Balance Due letter from the Department.

A Federal Employer Identification Number (FEIN) is not the same as the CAN and will not post the payment to your account.

Electronic Funds Transfer Requirements

Employers who pay more than $50,000 withholding tax per year are required to pay by EFT. Employers who do not meet this requirement are encouraged to use EFT as it reduces processing delays and errors. If payment is submitted electronically using EFT, you do not need to file a wage withholding return (DR 1094).

You can sign up for EFT through your Revenue Online account or by using the Authorization for Electronic Funds Transfer (EFT) For Tax Payments (DR 5785). By signing up in Revenue Online, you can use your EFT Number and PIN Code the next business day. For more information on how to register, please visit the How to Register for EFT web page.