Tax Calculations

Tax Calculations

The amount of income tax withheld from your paycheck is regulated by the Internal Revenue Servicen (federal taxes) and the Colorado Department of Revenue (state taxes). What you are taxed also and depends on your payment schedule and the type of payment in question.

Withholding Calculations by Payment Type

Type of Payment

Federal Withholding

Colorado Withholding

Biweekly hours paid - current pay period

Federal Tax Table

State Tax Table

Monthly wages paid - current pay period

Federal Tax Table

State Tax Table

Monthly - additional wages/ retroactive pay paid as part of current pay period

Federal Tax Table(may result in a higher percentage of withholding than usual)

State Tax Table(may result in a higher percentage of withholding than usual)

Additional Pay (See Additional Pay for a break down of tax rates—e.g. W-4 Income Tax Withholding or Supplemental Tax Rate.)

Federal Supplemental Tax Rate of 25 percent or Federal Tax Table, depending on earn type

State Supplemental Tax Rate of 4.63 percent or State Tax Table, depending on earn type

All other taxable payments (awards, moving, etc.)

Federal Supplemental Tax Rate of 25 percent.

State Supplemental Tax Rate of 4.63 percent

Federal Tax Table is the taxation calculation defined by the Internal Revenue Service. The withholding amount is determined by the wage payment amount, and the marital status and exemption (allowance) entries entered on Form W-4 by the employee.

State Tax Table is the taxation calculation defined by the Colorado Department of Revenue. The withholding amount is determined by the wage payment amount, and the marital status and exemption (allowance) entries entered on IRS Form W-4 by the employee.

Federal Supplemental Tax Rate is the rate required by IRS regulation for some wages paid in addition to regular pay. This amount is currently 25 percent of taxable gross wages.

Federal Supplemental Withholding Rate

Effective Date

(Subject to Change)

 

Aug. 7, 2001Jan. 1, 2002May 28, 2003 and thereafter

 

27.5 percent27 percent25 percent

 

State Supplemental Tax Rate is the regulated, required rate for some wages paid in addition to regular pay. This amount is 4.63 percent of taxable gross wages.