Colorado Unfiled Payroll Tax Returns Checklist
Understanding Employer Payroll Tax Obligations
Colorado employers must comply with two separate payroll tax systems administered by different state agencies. The Colorado Department of Labor and Employment manages unemployment insurance tax filings, while the Colorado Department of Revenue handles state income tax withholding obligations.
Two Separate Filing Systems
Unemployment insurance wage reports are filed quarterly with the Colorado Department of
Labor and Employment through the MyUI Employer+ online system. Employers submit wage detail reports showing employee gross wages, monthly employment data, and premium payments for each calendar quarter.
These reports are due by the last day of the month following the quarter end: April 30 for
Quarter 1, July 31 for Quarter 2, October 31 for Quarter 3, and January 31 for Quarter 4. The
Division of Unemployment Insurance processes these submissions and calculates premium rates based on reported wage information.
State income tax withholding returns are filed with the Colorado Department of Revenue using
Form DR 1094. Filing frequency varies based on annual withholding liability: quarterly filers submit by the last day of the month after quarter end, monthly filers submit by the 15th of the following month, and weekly filers submit by the third business day after the Friday ending each week.
What Unfiled Returns Mean
An unfiled return represents a quarterly wage report or withholding tax return that an employer was required to submit but did not file by the applicable deadline. For unemployment insurance, the Colorado Department of Labor and Employment tracks quarterly wage detail reports and identifies accounts with missing submissions.
Consequences of Missing Filings
Employers who fail to submit unemployment insurance wage reports receive notices from the
Colorado Department of Labor and Employment and face a $50 penalty for each delinquent quarter. Interest charges to any unpaid premium payments may be applied by the Division, which can also place compliance holds on employer accounts.
Unfiled state withholding returns trigger penalties equal to the greater of $5 or 5% of unpaid tax, plus 0.5% per month up to a maximum of 12%. Based on available information, the Colorado
Department of Revenue may estimate tax amounts and issue notices of deficiency for unpaid withholding liability. Additional penalties apply for fraudulent failure to file or willfully false returns.
Steps to Address Unfiled Unemployment Insurance
Returns
1. Identify missing quarters: Log into MyUI Employer+ at the Colorado Department of
Labor and Employment portal. Review your Employer Home page to identify any missing wage reports flagged by the system.
2. Gather payroll records: Collect employee names, Social Security numbers, gross wages paid, and monthly employment data for each missing quarter. Verify wage information matches your payroll documentation for the reporting period.
3. Contact CDLE Employer Services: Call (303) 318-9100 for the Denver metro or
1-800-480-8299 toll-free. Request clarification about missing quarters, applicable penalties, and filing deadlines.
4. Submit electronic wage reports: Access MyUI Employer+ and navigate to the wage reporting section. Use the Manual Entry option to input wage detail records or upload a file using approved specifications.
5. Review and certify: Check all wage information for accuracy before submitting. Address any fatal errors identified by the system, select the certification checkbox confirming the information is complete and accurate, then submit the report.
6. Remit premium payments: Calculate unemployment insurance premiums owed based on submitted wage information. Make payment through MyUI Employer+ or approved
electronic funds transfer methods, and retain confirmation numbers showing payment submission.
7. Verify processing: Monitor your Employer Account Number for confirmation that the
Division of Unemployment Insurance processed your submission. Check for any follow-up notices requesting additional information or corrections.
Steps to Address Unfiled State Withholding Returns
1. Determine filing frequency: Review your Colorado Department of Revenue account to confirm whether you file quarterly, monthly, or weekly. Identify which specific filing periods are missing based on your assigned schedule.
2. Calculate withholding amounts: Review payroll records to determine the total
Colorado income tax withheld from employee wages during the missing period. Use the
Colorado Withholding Worksheet for Employers (DR 1098) if needed to verify calculations.
3. Contact DOR: Call (303) 238-7378 to speak with Taxpayer Service Representatives between 8:00 a.m. and 4:30 p.m. Mountain Time, Monday through Friday. Request information about missing returns, penalty amounts, and filing requirements.
4. Complete Form DR 1094: Obtain the Colorado W-2 Wage Withholding Tax Return for the missing period. Enter your employer information, filing period dates, total Colorado withholding amount, and any penalties or interest owed.
5. Submit return and payment: File Form DR 1094 electronically through Revenue Online if not required to use electronic funds transfer. Weekly filers must remit via EFT, which satisfies both filing and payment requirements.
6. Keep documentation: Retain copies of submitted returns, payment confirmations, and all correspondence with the Colorado Department of Revenue. Document filing dates and confirmation numbers for your records.
Preventing Future Filing Issues
Employers should register for both MyUI Employer+ and Revenue Online to manage filings electronically. Set calendar reminders for quarterly wage detail reporting deadlines at the
Colorado Department of Labor and Employment.
Monitor your assigned filing frequency for state withholding returns with the Colorado
Department of Revenue. Review employer account status regularly through both online portals to identify any compliance issues before penalties accumulate, and keep accurate payroll records showing gross wages, withholding amounts, and employment dates for all employees.
Facing State Enforcement or Payroll Tax Issues?
If you’ve received a state tax notice and aren’t sure how to respond, we can help you review your options and next steps.
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