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State Income Tax Withholding

Forum|Forum|4 years ago
April 1, 2022
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I am employed as an Outside Sales Rep in Colorado for a company based in Oklahoma. My company refuses to withhold and file Employee Colorado Income Tax. Can they do this, what am I missing?!

Not A Product Question

Best answer by ErnieS0

Your employer is required to withhold Colorado state tax if you are an employee. You can file a complaint with the Colorado Department of Revenue at DOR_Compliance@state.co.us.

Colorado says:

You must withhold Colorado income tax from any compensation paid to any employee if:

The compensation is subject to federal withholding for income tax purposes, and
The employee is a Colorado resident (whether working inside or outside of Colorado), or the employee is a nonresident of Colorado performing services in Colorado.

Withholding Tax Filing Requirements

E

ErnieS0Answer

Your employer is required to withhold Colorado state tax if you are an employee. You can file a complaint with the Colorado Department of Revenue at DOR_Compliance@state.co.us.

Colorado says:

You must withhold Colorado income tax from any compensation paid to any employee if:

The compensation is subject to federal withholding for income tax purposes, and
The employee is a Colorado resident (whether working inside or outside of Colorado), or the employee is a nonresident of Colorado performing services in Colorado.

Withholding Tax Filing Requirements

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K

KKill29Author

Thank you, make sense and lines up with everything I've read. I just don't know how they have they have gotten away with this for so long. I always assumed it was a loophole they were taking advantage of because I'm an outside sales rep.

Hal_Al

Employee

There may be a technicality (it's not clear that there is) that your employer is required to withhold state tax for every state that they have an employee in. But it's inconvenient for them to do so. It's much simpler for your to make quarterly estimated payments.