COLORADO STATE TAX CALCULATION#

Colorado State Tax Calculation#

On IPUTR, there is a list of applicable taxes to be calculated for State of Colorado

08-000-0000-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

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CO – IPRLU and Head Tax Set Up#

The Miscellaneous Tax Parameters must be set up for the following Miscellaneous Identifiers

Miscellaneous 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_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 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_METHOD

01 - 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

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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.

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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

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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.

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Notes#

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