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 upIPPH #
- 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 Colorado08-000-0000-SIT-000 | Colorado State Tax |
08-000-0000-ER_SUTA-000 | Colorado 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-000 | Greenwood Village - Employer OPT |
08-000-204737-CITY-000 | Aurora City Tax |
08-000-204737-ER_EHT-000 | Aurora - Employer OPT |
08-000-184853-CITY-000 | Glendale City Tax |
08-000-184853-ER_EHT-000 | Glendale - Employer OPT |
08-000-204714-CITY-000 | Sheridan City Tax |
08-000-204714-ER_EHT-000 | Sheridan - Employer OPT |
08-000-201738-CITY-000 | Denver City Tax |
08-000-201738-ER_EHT-000 | Denver - Employer OPT |
CO – IPRLU and Head Tax Set Up#
The Miscellaneous Tax Parameters must be set up for the following Miscellaneous IdentifiersMiscellaneous Identifiers | Description |
---|---|
FILINGSTATUS | Mandatory 'S'-single, 'M'-married, or 'MH'-married but w/h at higher single rate |
TOTALALLOWANCES | Optional Enter the total number of allowances |
POLITICALSUBDIVISION | Optional, 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_METHODNull, 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 Calculate | Employee may suppress the City Tax calculation This means the Head Tax will not be calculated |
Head Tax Method#
Lexicon X_ULOC_HEAD_TAX_METHOD01 - Calculate By Local | This 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 Period | Method ‘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 Calculate | Employee may suppress Head Tax calculation by specifying ‘99’ |
On IPPC, please set up pay components for these PC Usages to store the Head tax.
Usage | Description |
---|---|
6904 | City Work Deduction - EE Head Tax |
6905 | City Work Earnings - Reg Tax |
6906 | City Work Earnings - Supplemental Tax |
6910 | City Work Contribution- Employer Head Tax |
6924 | City Res. Deduction - EE Head Tax |
6925 | City Res. Earnings - Reg Tax |
6926 | City Res. Earnings - Supplemental Tax |
6930 | City 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:
- 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.
- IDGV
CO – UPCALC Example 1#
- Work GEO
- CO 08-001-201738 Denver, Colorado
IPUTP STATE_ROUNDING = YES
Symmetry Set Up - CO_01.jpg
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 | = 5.75 | Employee Monthly Amount for Denver City Head Tax |
PC 6930 RCITY ER Head Tax | = 4.00 | Employer OPT Monthly Amount for Denver |
PC 8130 RCITY Earn | = 1923.08 | RCITY Earn is stored for checking Monthly Minimum |
PC 8131 RCITY SupEarn | = 1000.00 | RCITY SupEarn is stored for checking Monthly Minimum |
Pay#3 #
PC 6924 RCITY EE Head Tax | = 0 | Employee Monthly OPT already taken, therefore 0 tax |
PC 6930 RCITY ER Head Tax | = 0 | Employer 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
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 | = 2.65 | Employee 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 | = 4.00 | Employer OPT Monthly Amount for Denver |
Note: Employer Head Tax will not be prorated at all |
Pay#3 #
PC 6924 RCITY EE Head Tax | = 0 | Employee Monthly OPT already taken for this period, 0 tax |
PC 6930 RCITY ER Head Tax | = 0 | Employer 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
Pay# 2 #
Work GNIS | CO 08-031-201738 | Denver, Denver |
HOME GEO | CO 08-001-201738 | Adams, Denver |
PC 6924 RCITY EE Head Tax | = 5.75 | Employee Monthly Denver City Head Tax |
PC 6930 RCITY ER Head Tax | = 4.00 | Employer OPT Monthly Amount for Denver |
Pay# 3 #
Work GEO | CO 08-031-201738 | Denver, Denver |
HOME GEO | CO 08-031-201738 | Denver, Denver |
PC 6924 RCITY EE Head Tax | = 0.00 | Denver EE Head Tax has been taken for this month |
PC 6930 RCITY ER Head Tax | = 0.00 | Denver 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.