COLORADO STATE TAX CALCULATION#

State Tax Calculation - General Set Up#

Please refer to the US Federal Tax Calculation document's 'General Set Up' section for all set up requirements.

At state level, the following screens should be verified set up for each state:

IPUTR#

This screen is used to:
  • view US Tax Rates by state and to enter the Overridden rates and Wage Base.
  • suppress some SUTA Surcharge Calculation for some states by checking the 'Do not Calculate' toggle

IPUTP #

This screen is used to:
  • view US Tax Miscellaneous Parameters by the states that are applicable for IPRLU

IDGV#

  • This screen may optionally contain specific Override rates and Wage bases by Government Registration for each Registration from the Pay Header's group
  • IDGV overridden amounts take precedence over the IPUTR overridden amounts

IPRLU/IPRULS #

  • Each employee must be set up with the applicable Tax Methods
  • Miscellaneous Tax Parameters must be set up by the states that need to be paid

UPRLU #

This process audits the US Tax Filing information and generates IPRLU Miscellaneous Tax Parameters information according to IMCT set up

IPPH #

  • The Pay Header tab must specify the default Work Jurisdiction and Home Jurisdiction
  • In the Pay Lines tab, the Jurisdiction field must specify the Work Jurisdiction of this pay line
  • After Trial Calc or UPCALC, the Pay Amounts tab will contain all US Taxation amounts in summary that are used for the calculation of net pay
  • The Pay Jurisdiction tab contains the default Work Jurisdiction and Home Jurisdiction
  • After Trial Calc or UPCALC, the Pay Jurisdiction tab contains all US Taxation amounts by jurisdiction in detail

Colorado State Tax Calculation#

On IPUTR, there is a list of applicable taxes to be calculated for State of Colorado
08-000-0000-SIT-000Colorado State Tax
08-000-0000-ER_SUTA-000Colorado State Unemployment Tax


If UPUTR is run with list of IDTX jurisdictions, the following entries may exist. The tax rate can be used as a reference for the Head tax calculation.
08-000-185037-CITY-000 Greenwood Village City Tax
08-000-185037-ER_EHT-000Greenwood Village - Employer OPT
08-000-204737-CITY-000Aurora City Tax
08-000-204737-ER_EHT-000Aurora - Employer OPT
08-000-184853-CITY-000Glendale City Tax
08-000-184853-ER_EHT-000Glendale - Employer OPT
08-000-204714-CITY-000Sheridan City Tax
08-000-204714-ER_EHT-000Sheridan - Employer OPT
08-000-201738-CITY-000Denver City Tax
08-000-201738-ER_EHT-000Denver - Employer OPT



CO – IPRLU and Head Tax Set Up#

The Miscellaneous Tax Parameters must be set up for the following Miscellaneous Identifiers
Miscellaneous IdentifiersDescription
FILINGSTATUSMandatory
'S'-single, 'M'-married, or 'MH'-married but w/h at higher single rate
TOTALALLOWANCESOptional
Enter the total number of allowances
POLITICALSUBDIVISIONOptional, Enter 'True' or 'False' to indicate if the Employer’s businesses are classified as Colorado Political Subdivisions.

Businesses within this subdivision are subject to SUTA withholding beyond the state’s wage base at the provided SUTA rate.

The IPRLU Local tab must be set up as follows:

Colorado Head tax can be treated as ‘City Tax’ or ‘Head Tax’. The results are stored in Head Tax pay components. The ‘Head Tax’ calculation may be suppressed from either ‘City Tax Method’ or ‘Head Tax Method’. If IPRLU City Tax Method and Head Tax Method are not set up, the default Head Tax will be calculated.

City Tax Method#

Lexicon X_ULOC_CITY_TAX_METHOD
Null, or All methods (except 99)The will calculate City Head Tax for Colorado

Colorado City Tax means the Head Tax will be calculated
99 - Do Not CalculateEmployee may suppress the City Tax calculation

This means the Head Tax will not be calculated

Head Tax Method#

Lexicon X_ULOC_HEAD_TAX_METHOD
01 - Calculate By LocalThis is the default method. The Head Tax will be calculated according to the GNIS code; the monthly Head Tax amount will be deducted as one entire amount, proration will not be done for each pay period.

For converted Vertex users, in order to compare Vertex Head Tax result to Symmetry Head Tax result, the Head Tax Method ’02’ to ‘05’ can still be used. Symmetry will default to use Method ‘01’ for calculation
06 - Calc, Prorate by PeriodMethod ‘06’ is for Symmetry users only, the monthly Head Tax amount will be prorated for each pay period. Note: Proration is only performed for Employee Head Tax Amount

The Employer OPT will not be prorated
99 - Do Not CalculateEmployee may suppress Head Tax calculation by specifying ‘99’

On IPPC, please set up pay components for these PC Usages to store the Head tax.

UsageDescription
6904City Work Deduction - EE Head Tax
6905City Work Earnings - Reg Tax
6906City Work Earnings - Supplemental Tax
6910City Work Contribution- Employer Head Tax
6924City Res. Deduction - EE Head Tax
6925City Res. Earnings - Reg Tax
6926City Res. Earnings - Supplemental Tax
6930City Res Contribution - Employer Head Tax



CO – ER SUTA Rate#

ER SUTA may be bypassed on IPUTR with ‘Do not Calculate’ or IPRLU ‘SUI ER Method’ = ‘Do not Calculate’.

There are two options to set up the ER SUTA rate by state:

  1. IPUTR
    • Enter the SUTA ER rate that is given by the government on the Override Tax Rate field.
    • This rate is applicable for the entire company within the State of Colorado.
  2. IDGV
    • If there is a specific rate given by the government for a different State Registration #, then enter the rate on IDGV by ‘Reg Type’; this overrides the IPUTR rate.



CO – UPCALC Example 1#

Work GEO
CO 08-001-201738 Denver, Colorado
IPUTP STATE_ROUNDING = YES

Symmetry Set Up - CO_01.jpg(info)
IPRLU Miscellaneous Tab
Head Tax Method = 01 - Calculate By Local
(i.e. NO PRORATION to Employee Head Tax)

Pay#2 #

PC 8046 Res SIT Earn= 1729.97
PC 8056 Res SSP Earn= 899.58
PC 6042 Res SIT= 76.00
PC 6052 Res SIT Sup= 899.58 x 4.63 % = 41.65, Round to 42.00
PC 6703 SUI ER Contr= 2766.66 x IPUTR 08-000-0000-ER_SUTA-000 Overridden Rate 0.102
= 282.20
PC 6924 RCITY EE Head Tax= 5.75Employee Monthly Amount for Denver City Head Tax
PC 6930 RCITY ER Head Tax= 4.00Employer OPT Monthly Amount for Denver
PC 8130 RCITY Earn= 1923.08RCITY Earn is stored for checking Monthly Minimum
PC 8131 RCITY SupEarn= 1000.00RCITY SupEarn is stored for checking Monthly Minimum

Pay#3 #

PC 6924 RCITY EE Head Tax= 0Employee Monthly OPT already taken, therefore 0 tax
PC 6930 RCITY ER Head Tax= 0Employer Monthly OPT already taken, therefore 0 tax


Work GEO
CO 08-001-201738 Denver, Colorado
IPUTP STATE_ROUNDING = YES

Symmetry Set Up - CO_02.jpg(info)
IPRLU Miscellaneous Tab
Head Tax Method = 06 - Calc, Prorate by Period
(i.e. PRORATION to Employee Head Tax)

Pay#2 #

PC 6924 RCITY EE Head Tax= 2.65Employee Prorated Monthly Denver City Head Tax
$5.75 x 12= $69 per year
$69 / 26 = $2.65 for Bi-weekly pay period
PC 6930 RCITY ER Head Tax= 4.00Employer OPT Monthly Amount for Denver
Note: Employer Head Tax will not be prorated at all

Pay#3 #

PC 6924 RCITY EE Head Tax= 0Employee Monthly OPT already taken for this period, 0 tax
PC 6930 RCITY ER Head Tax= 0Employer Monthly OPT already taken, therefore 0 tax



CO – UPCALC Example 2 - Jurisdictions#

In Period 201103, an employee lives in Denver with Jurisdiction 08-001-201738 (County: Adams) and works in Denver with a different jurisdiction, 08-031-201738 (County: Denver) for 80 hours.

In same period, the employee moves to where he works and works another 40 hours. Symmetry Set Up - CO_03.jpg(info)

Pay# 2 #

Work GNISCO 08-031-201738Denver, Denver
HOME GEOCO 08-001-201738Adams, Denver
PC 6924 RCITY EE Head Tax= 5.75Employee Monthly Denver City Head Tax
PC 6930 RCITY ER Head Tax= 4.00Employer OPT Monthly Amount for Denver

Pay# 3 #

Work GEOCO 08-031-201738Denver, Denver
HOME GEOCO 08-031-201738Denver, Denver
PC 6924 RCITY EE Head Tax= 0.00Denver EE Head Tax has been taken for this month
PC 6930 RCITY ER Head Tax= 0.00Denver ER Head Tax has been taken for this month

Although the County codes are different, Denver City Code 201738 is used to check if Head Tax has been taken.


Notes#

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