Completing tax forms for each calendar year may feel overwhelming without factoring in your business’s 1093 form. The Colorado Department of Revenue mandates the use of DR-1093 for reporting purposes. The Department utilizes any business’s data to reconcile all of the payments received from employees in the most recent calendar year. Ensure that all of your calculations are accurate for that reason. Colorado employers must also transmit all copies of DR-1094. The employee W-2 form is short, but it has its own specific instructions.
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What is Colorado’s 1093 Form?
The Colorado Department of Revenue’s form summarizes the state income tax that businesses withhold from every employee during a calendar year. Every Colorado business files the form to the state. File DR-1093 in January for the withholding taxes that your business reported on W-2 forms the previous year.
Active businesses must postmark the form on or before Jan. 31. Inactive or closed accounts will postmark a Form DR-1093 within 30 days of the business’s closure. You may send your form on the following business day if a due date lands on a weekend or holiday.
Steps to Submit a 1093 Tax Form
Complete the transmittal 1093 form by following the steps for each line that we described below:
Line 1 – Put the full amount that the state withheld using W-2s from every Colorado employee.
Line 2 – Enter what you remitted in Colorado withholding payments. Do not add your penalties or your interest paid.
Line 3 – Enter a zero on line 6 if your amounts on lines 1 and 2 are equal.
Line 3A – This line handles additional tax. Complete lines 3A, 4, 5, and 6 if the value on line 1 exceeds line 2. The state calculates penalty and interest once you owe a balance.
Line 3B – This line handles overpayment. Fill in the line if line 2 exceeds line 1. Do not fill in line 6 on the 1093 form. File the form on time and wait for a tax refund. Delays may include the state requiring a review or if you have any outstanding account delinquencies.
Line 4 – This line deals with penalties. Enter 5% of the tax that is due or $5 for any payment that you made after the deadline. Choose whichever amount is greater. Add an additional half of a percentage penalty for each month that you are late. The maximum late filing penalty is 12%.
Line 5 – This line of a 1093 tax form is the calculated interest on the balance of the tax due. It is for returns that you file after the deadline. The statutory rate is .3333% for each delayed monthly payment.
Line 6 – Add lines 3A, 4, and 5 on your 1093 form if line 1 is greater in value than line 2. Enter zero on your form for the additional balance paid if line 1 equals line 2.
DR-1093 vs. DR-1094
The simplest distinction between the two forms is that DR-1093 summarizes what you report on DR-1094. Employers use DR-1094 to report state W-2 income taxes withheld from employees’ wages. First complete payroll and withhold income taxes as outlined on DR-1098. Then report on DR-1094 the total amount of tax that you collected for the designated filing period. Use that amount to report your business’s Colorado withholding tax on your end-of-year W-2 Wage and Tax Statement.
Use AMS for a 1093 Tax Form
We built our software with small businesses’ specific needs in mind. The products operate on a modular system. Users easily and efficiently enter and store their data with our W-2/1099 Forms Filer. The Browse command feature enables users to enter their data with a spreadsheet format. Import data from a multitude of sources, including Excel, form print files, and ordinary text files.
Understand which AMS product modules support your state forms. Our Forms Filer Plus module supports DR-1093 and DR-1094. It is as important to know that AMS Payroll does not cover the 1093 form, but it does cover DR-1094. Discover which products make sense to invest in with the free 1099-etc Demo software. Feel free to enter real data while using the demo. Download our free demo today or call our customer support team at (405) 340-0697 with any questions.