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Colorado Payroll Tax Compliance

Employers in Colorado must meet three key payroll compliance obligations: state income tax withholding, unemployment insurance (UI), and new hire reporting.

Each requirement has its own forms, deadlines, and reporting rules established by the state agencies. The sections below provide a clear overview of these obligations.

Colorado Withholding Tax Requirements​

Colorado employers are required to withhold state income tax from employee wages and remit the tax to the Colorado Department of Revenue (CDOR). Employers must establish a Colorado wage withholding tax account before filing withholding returns.

The withholding filing frequency is determined by the amount of Colorado withholding tax accumulated during the applicable period. Employers may be required to file quarterly, monthly, or weekly.

Forms required​

Form DR 1094

  • Filed to report and remit Colorado income tax withheld from employee wages reported on Forms W-2.
  • Colorado employers with less than $7,000 in annual withholding are generally assigned a quarterly filing frequency. Quarterly filers must file by the last day of the month following the end of the quarter.
  • Employers withholding $7,000 or more but less than $50,000 are generally assigned a monthly filing frequency. Monthly filers must file by the 15th day of the following month.
  • Employers withholding $50,000 or more are generally assigned a weekly filing frequency. Weekly filers must remit taxes accumulated through Friday by the third business day following that Friday.

Form DR 1093

  • Filed annually as the Annual Transmittal of State W-2 Forms.
  • Used to reconcile Colorado income tax withheld from employee wages reported on Forms W-2.
  • Due January 31 of the following year.
  • Employers must submit applicable Forms W-2 and W-2c reporting Colorado wages or withholding as part of the annual reconciliation.

Form DR 1107

  • Used to report and remit Colorado income tax withheld from 1099 payments.
  • Filing frequency may be weekly, monthly, or quarterly, depending on the amount of withholding.
  • Weekly withholding is due by the third business day following Friday.
  • Monthly withholding is due on the 15th day of the following month.
  • Quarterly withholding is due on the last day of the month following the quarter.

Form DR 1106

  • Filed annually as the Annual Transmittal of State 1099 Forms.
  • Used to reconcile Colorado income tax withheld from 1099 payments.
  • Filed in January for withholding reported on federal Forms 1099.
  • Applicable 1099 statements containing Colorado state withholding must be submitted to the Department.

Colorado Unemployment Insurance (UI) Requirements​

Employers that are liable for Colorado unemployment insurance must report employee wages and unemployment insurance premiums to the Colorado Department of Labor and Employment (CDLE), Division of Unemployment Insurance.

Employers must submit quarterly wage reports, individual employee wage information, monthly employment data, and applicable unemployment insurance premium payments. Colorado currently requires quarterly wage detail reports and monthly employment data to be submitted electronically through MyUI Employer+, unless the employer has an approved non-electronic filing waiver.

Forms required​

Form UITR-1

  • Filed quarterly as the Unemployment Insurance Tax Report / Quarterly Report of Wages Paid and Premiums Owed.
  • Used to report total Colorado gross wages, taxable wages, excess wages, and unemployment insurance premiums owed.
  • Due on the last day of the month following the end of the quarter — April 30, July 31, October 31, and January 31.
  • The report covers wages paid during the corresponding quarter.

Form UITR-1A

  • Filed quarterly as the Report of Individual Employee's Wages / Report of Workers' Wages.
  • Used to report individual employee wage information, including the wages paid to each covered employee during the quarter.
  • Due on the last day of the month following the end of the quarter — April 30, July 31, October 31, and January 31.
  • The report is used to provide employee-level wage details that support the calculation and administration of Colorado unemployment insurance.

TaxBandits API supports the automation of UITR-1. See how it works

Colorado New Hire Reporting​

  • Employers must report all newly hired and rehired employees to Colorado within 20 calendar days of the employee's hire date.

  • If the first regularly scheduled payroll occurs after the 20 days, the report must be submitted by that first regularly scheduled payroll.

  • New hire reporting is administered through the Colorado Department of Labor and Employment and supports enforcement of child support obligations and other state programs.