TAXES 17-03, Colorado State Income Tax Withholding

Published: March 8, 2017
Effective: Pay Period 06, 2017

Summary

The income tax withholdings for the State of Colorado will change as follows:

• The exemption allowance will increase from $4,000 to $4,050.
• The Married income tax withholdings will change.

No action on the part of the employee or the personnel office is necessary.

Tax Formula

Withholding Formula (Effective Pay Period 06, 2017)

1. Subtract the nontaxable biweekly Thrift Savings Plan contribution from the gross biweekly wages.
2. Subtract the nontaxable biweekly Federal Health Benefits Plan payment(s) (includes dental and vision insurance program and Flexible Spending Account − health care and dependent care deductions) from the amount computed in step 1.
3. Add the taxable biweekly fringe benefits (taxable life insurance, etc.) to the amount computed in step 2 to obtain the adjusted gross biweekly wages.
4. Multiply the adjusted gross biweekly wages times 26 to obtain the gross annual wages.
5. Determine the exemption allowance by applying the following guideline and subtract this amount from the gross annual wages to compute the taxable income:

   Exemption Allowance = $4,050 x Number of Exemptions

6. Apply the taxable income computed in step 5 to the following table to determine the annual Colorado tax withholding:

   Single Tax Withholding Table

   Taxable Wages	Amount of Tax
   Over $0 but not over $2,300	$0.00
   Over $2,300	4.63% of excess over $2,300

   Married Tax Withholding Table

   Taxable Wages	Amount of Tax
   Over $0 but not over $8,650	$0.00
   Over $8,650	4.63% of excess over $8,650

7. Divide the annual Colorado tax withholding calculated in step 6 by 26 and round to the nearest dollar to obtain the biweekly Colorado tax withholding.
8. Add any additional amount or percentage elected by the employee to the pay period tax calculated in the above step and round to the nearest dollar to determine the amount of tax to be withheld for this pay period.

Resources

To view the updated tax formula, go to the HR and Payroll Clients page from the MyNFC drop-down menu on the National Finance Center (NFC) homepage. Select the Publications tab in the center ribbon. Select U.S. Income Tax Formulas from the Publication menu to launch the tax map. Select the desired State from the map provided for the formula.

Inquiries

For questions about NFC processing, authorized Servicing Personnel Office representatives should contact the NFC Contact Center at 1-855-NFC-4GOV (1-855-632-4468) or via the Internet using the Requester Console.