Electronic filing is recommended for all employers and required for those with 10 or more employees. However, employers with fewer than 10 employees may choose to file paper W-2s instead of filing electronically. Employers can submit these statements to the Department electronically through Revenue Online or submit paper copies of the form (DR 1093 or DR 1106).
Employers filing annual wage withholding statements (W-2s) electronically should not also send paper statements to the Department. In addition, the employer filing electronically only needs to complete the Annual Transmittal of State W-2 Form (DR 1093) if paying additional tax or requesting a refund.
If an employer with fewer than 10 employees cannot submit W-2 forms electronically, it must prepare the Annual Transmittal of State W-2 Forms and submit copies of the paper W-2 forms to the Department. If mailing paper W-2 statements, the form must meet federal filing specifications.
The employer must verify that the Annual Transmittal of State W-2 Forms is completed correctly. It will indicate if there is a balance due or a refund requested (an amount is shown on line 3A or 3B of the form DR 1093). If a payment is required, it can be made by EFT, through Revenue Online, or by mail. If mailing a payment, be sure to write the business name, Colorado Account Number (CAN) and form number (DR 1093) on the check or money order. If you are requesting a refund, it is preferable that you send in a paper Annual Transmittal of State W-2 Forms directly to the Department.
For step-by-step instructions on how to complete the annual reconciliation and W-2 submittal process, watch the video below. For information on how to submit 1099-NEC forms, visit the Important Information About the 1099-NEC web page.