Colorado Payroll Updates - November 2024

Week Of 11.11.2024

Colorado 2025 Income Tax Withholding Information

For income tax year 2025, the Colorado Department of Revenue confirmed that any temporary rate reductions allowed under Colo. Rev. Stat. § 39-22-627 of the Colorado Revised Statutes will not be determined until October 1, 2025. As a result, wage withholding will continue at the regular income tax rate of 4.40% as specified by Colo. Rev. Stat. § 39-22-104(1.7)(c). Taxpayers and employers should expect the revised Form DR 0004 and Form DR 1098, which will include updates reflecting any new IRS adjustments to the standard deduction, to be released by the end of the month.

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