Colorado Bonus Pay Tax Calculator

2026 Colorado bonus withholding

Colorado Bonus Pay Tax Calculator

Estimate a Colorado employee's net bonus with the official 2026 DR 1098 method, FAMLI premiums, federal supplemental-wage rules, annual wage caps, optional local tax, and net-to-gross planning.

Calculate a Colorado paycheck Explore TimeTrex payroll

Bonus inputs

Use gross-to-net for a planned bonus or net-to-gross when a take-home amount was promised.

Gross bonus amount Enter the taxable bonus to be paid.

Supplemental pay type

Federal withholding method

Payment presentation Federal flat withholding can apply to a separately identified amount when eligible. Colorado withholding always uses the entered payroll period under DR 1098; set both regular-pay fields to $0 for a true standalone period.

Regular wages had federal income tax withheld

The optional 22% federal flat method generally depends on regular wages having had income tax withheld in the current or prior year.

Pay frequency

YTD Social Security wages from this employer Used only for the 2026 $184,500 Social Security wage-base check.

YTD Medicare wages from this employer Used for the employer's $200,000 Additional Medicare withholding threshold.

YTD supplemental wages before bonus Include supplemental wages paid in 2026 by this employer and businesses under common control for the $1 million federal test.

Regular wages for this pay period Used for aggregate withholding comparisons.

Federal W-4 settings

Federal filing status

Use higher W-4 Step 2 checkbox tables

Annual credits from W-4 Step 3

Annual other income from W-4 Step 4(a)

Annual deductions from W-4 Step 4(b)

Extra federal withholding per regular check

Extra federal withholding on this bonus

Colorado withholding and FAMLI settings

Colorado withholding allowance source DR 1098 uses $11,000 for married filing jointly or qualifying surviving spouse and $5,500 otherwise when no DR 0004 amount is supplied.

DR 0004 Line 2 / custom annual allowance Used only when the custom source is selected. An intentional zero on DR 0004 is valid.

Colorado-taxable regular wages in same paycheck Used only by the DR 1098 comparison. Keep this separate from federal regular pay when Colorado sourcing differs.

Bonus subject to Colorado withholding Use 100% for a Colorado resident or fully Colorado-taxable bonus. A nonresident's Colorado wages may require workday sourcing.

Extra Colorado withholding on this bonus Optional amount requested for this payment. The regular per-pay-period DR 0004 Line 3 amount normally cancels from an incremental combined-minus-regular estimate.

Valid Colorado withholding exemption applies

Select only when the employee has a valid exemption recognized for Colorado wage withholding.

Bonus is covered by Colorado FAMLI

Colorado FAMLI defines gross wages to include bonuses. Turn off only for an approved private plan, local-government opt-out, or other valid coverage exception.

YTD Colorado FAMLI wages before bonus FAMLI premiums stop at the 2026 Social Security wage base of $184,500.

FAMLI-covered portion of bonus This control is independent from Colorado income-tax sourcing and unemployment-insurance wage treatment.

Employee FAMLI deduction rate 2026 maximum employee share is 0.44%. Enter 0 if the employer covers the employee share or an approved plan produces no employee deduction.

Optional local occupational tax

Local profile Select Denver only for compensation from services performed there. Its OPT is a fixed monthly tax, not a percentage. Other home-rule cities may differ; Aurora repealed its OPT effective January 1, 2025.

Local wages this month before bonus

Monthly earnings threshold

Employee monthly amount

Employer monthly amount

Employee monthly tax already withheld or valid secondary-employer certificate

Prevents a duplicate employee charge on an off-cycle bonus or at a secondary Denver employer.

Employer monthly tax already incurred

Prevents a duplicate employer charge while leaving the employee-side test independent.

Employer cost estimate settings

YTD Colorado UI wages before bonus Used only for the employer-side Colorado unemployment wage-base estimate.

Colorado UI wage base The official 2026 chargeable wage base is $30,600 per employee.

Colorado UI employer rate Defaults to the official 2026 combined introductory rate for non-construction employers. Use the employer's assigned 2026 rate notice when known.

Colorado UI-taxable portion of bonus Colorado UI generally treats gross wages, including bonuses, as chargeable wages. This affects employer cost only.

Employer FAMLI share applies (generally 10+ employees)

Employers with nine or fewer employees generally remit the employee share but do not owe the employer share. Headcount uses the program's nationwide test.

Employer FAMLI rate 2026 default large-employer share is 0.44% of covered wages, subject to the same wage cap.

YTD FUTA wages before bonus Used only for the employer-side $7,000 FUTA wage-base estimate.

Estimated net FUTA rate Default assumes the full 5.4% state credit. Final 2026 credit-reduction status and employer facts can change the effective rate.

Estimated net bonus

Flat supplemental method with 2026 Colorado rules.

Net bonus $0.00 Tax withholding estimate updates as inputs change.

Gross bonus $0.00

Total withheld $0.00

Effective withholding 0.00%

Employer cost estimate $0.00

Withholding line	Amount

Method comparison

Method	Net bonus	Total withheld

What this calculator includes

Federal supplemental methods

Model the optional 22% method, the mandatory 37% rate only on supplemental wages above $1 million, and the aggregate method using the 2026 Publication 15-T tables.

Colorado's actual payroll method

Calculate incremental Colorado withholding as the 2026 DR 1098 result on regular pay plus the Colorado-taxable bonus, minus the DR 1098 result on regular pay alone.

Separate wage tests

Keep Social Security, Medicare, FAMLI, Colorado unemployment insurance, FUTA, and local monthly tax inputs distinct so employer costs never reduce employee take-home pay.

This is a 2026 withholding estimate for an ordinary taxable cash bonus paid to a W-2 employee. It models a 2020-or-later federal Form W-4 and the 2026 Colorado DR 1098 worksheet. Pretax deductions, retirement deferrals, garnishments, private FAMLI plans, special wage exclusions, legacy W-4 forms, nonresident sourcing, successor-employer rules, same-period earlier supplemental payments, local exemptions, and payroll-provider rounding can change the actual paycheck.

Colorado bonus withholding FAQ

Does Colorado have a special flat bonus rate?

No. Bonuses are Colorado wages, but the Department of Revenue requires employers to use DR 1098. The 4.40% factor is applied after annualizing payroll-period wages and subtracting the applicable annual allowance.

What allowance does DR 1098 use in 2026?

Without a DR 0004 Line 2 amount, the worksheet uses $11,000 for married filing jointly or qualifying surviving spouse and $5,500 for other W-4 filing statuses. A completed DR 0004 can provide a different amount, including zero.

Does Colorado FAMLI apply to a bonus?

Generally yes. FAMLI's gross-wage definition includes bonuses. The 2026 total premium is 0.88%, usually split into 0.44% employee and 0.44% large-employer shares, up to the Social Security wage base.

When can an employer use the federal 22% method?

It is optional for an eligible separately paid or separately identified supplemental amount when federal income tax was withheld from regular wages in the current or immediately preceding year.

When does the federal 37% rate apply?

Only the portion that takes calendar-year supplemental wages above $1 million is subject to mandatory 37% withholding. The threshold includes businesses under common control.

How does Denver's occupational tax affect a bonus?

Denver OPT is a once-per-month fixed amount when Denver compensation reaches the monthly threshold, not a percentage of the bonus. The preset uses $5.75 employee, $4.00 employer, and a $500 threshold, with separate prior-payment controls to prevent duplication.

Does Colorado unemployment insurance reduce the bonus?

No. Colorado UI is an employer cost. The estimate uses the 2026 $30,600 wage base and an editable assigned rate; the 3.05% default is the non-construction introductory combined rate.

Can this calculator gross up a promised net bonus?

Yes. Net-to-gross mode solves numerically so it can cross the federal $1 million test, Social Security and FAMLI wage caps, the Additional Medicare threshold, and local monthly thresholds.

Research sources

Rates and formulas are based on primary official material checked on July 17, 2026. Recheck year-specific withholding worksheets, FAMLI rates, wage bases, assigned UI rates, local rules, and federal updates before later-year payroll.

IRSPublication 15 (Circular E), 2026

IRSPublication 15-T, 2026

Social Security Administration2026 contribution and benefit base

Colorado Department of RevenueDR 1098 current-year landing page

Colorado Department of Revenue2026 DR 1098 withholding worksheet

Colorado Department of RevenueColorado Wage Withholding Tax Guide

Colorado Department of RevenueWage withholding FAQ

Colorado FAMLI DivisionOfficial 2026 premium-rate notice

Colorado FAMLI DivisionGross wages include bonuses

Colorado General AssemblySB 25-144 enacted premium change

Colorado Department of Labor and Employment2026 UI wage base and rate schedules

Colorado Department of Labor and Employment2026 introductory UI rates

Colorado Department of Labor and EmploymentUI wage-reporting guidance

Denver Revised Municipal CodeDenver employee OPT provisions

City and County of DenverTD 269 principal-employer certificate

City of AuroraOPT repeal effective January 1, 2025

TimeTrexColorado payroll tax calculator

Move from a bonus estimate to a complete Colorado paycheck

Need the full paycheck picture? Estimate regular wages and current Colorado payroll deductions with TimeTrex's free Colorado Payroll Tax Calculator, or connect time, approvals, and payroll records in one workflow.

Calculate a Colorado paycheck Explore TimeTrex payroll

Disclaimer: This calculation tool provides a withholding tax estimate for ordinary taxable cash bonuses paid to W-2 employees in Colorado using the 2026 federal Publication 15-T tables and the state’s incremental DR 1098 annualized payroll-period calculation method, alongside applicable state FAMLI program premiums and local occupational privilege taxes. The output is intended for internal budgeting and directional tracking purposes and does not constitute official legal, financial, or professional payroll advice. Actual paycheck obligations can vary significantly based on legacy W-4 configurations, non-resident workday allocation splits, local municipal exceptions (such as Denver OPT variables or Aurora’s historical repeal), pretax benefit elections, retirement account deferrals, garnishment orders, or provider rounding variances. Businesses must cross-reference actual withholding outputs with certified accountants or designated tax authorities prior to final execution.

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Disclaimer: The content provided on this webpage is for informational purposes only and is not intended to be a substitute for professional advice. While we strive to ensure the accuracy and timeliness of the information presented here, the details may change over time or vary in different jurisdictions. Therefore, we do not guarantee the completeness, reliability, or absolute accuracy of this information. The information on this page should not be used as a basis for making legal, financial, or any other key decisions. We strongly advise consulting with a qualified professional or expert in the relevant field for specific advice, guidance, or services. By using this webpage, you acknowledge that the information is offered “as is” and that we are not liable for any errors, omissions, or inaccuracies in the content, nor for any actions taken based on the information provided. We shall not be held liable for any direct, indirect, incidental, consequential, or punitive damages arising out of your access to, use of, or reliance on any content on this page.

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Colorado Bonus Pay Tax Calculator