The Colorado Department of Revenue, Taxation Division has announced the issuance of four updated forms for 2025.
Of the updated forms, the most important for employment law purposes is the DR0995, Notice of Federal and State Refundable Tax Credits. The requirement that this form be provided to Colorado employees is a rather recent one but does apply to all Colorado employers. This notice must be provided annually to each employee, either electronically or in print.
The other three updated forms are:
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DR 0004, Colorado Employee Withholding Certificate: This form has updated formatting, increased amounts for the standard allowance, and a new line on Worksheet 1 allowing employees to account for additional tax credits. An existing employee may update their withholding certificate for 2025, but they are not required to.
Additional information and resources regarding Colorado withholding can be found at Tax.Colorado.gov/Withholding-Tax. Employers Council members can find tax forms for other states using the CCH Multi-State tool.
Jacqueline Talbot is a paralegal for Employers Council.