Colorado Withholding Certificate DR 0004:
Information and Resources
What is form DR 0004?
Form DR 0004 is the new Colorado withholding certificate that is optional for employees to complete starting in 2022. It is not meant to replace form W-4 for Colorado withholding, but is meant to help employees in a few specific situations who may want to fine-tune their Colorado withholding. If an employee asks about adjusting their withholding, the employer is required to provide form DR 0004 to them.
How does form DR 0004 change the Colorado withholding calculation?
The Colorado Withholding Worksheet for Employers (DR 1098) prescribes the calculation employers are required to use. It has been updated with directions for entering the amounts from form DR 0004 into the existing calculation steps.
Reasons an employee may want to complete form DR 0004:
Reasons an employee may want to complete a new Federal W-4 and/or Colorado DR 0004:
The Department is working on updates to the Wage Withholding Tax Guide and Rule 39-22-604 for withholding. To sign up for the Department’s rulemaking notifications, see the link at the bottom of Tax.Colorado.gov/Tax-Rules.