As previously mentioned, the IRS and the State of Colorado have released new tax withholding forms for 2022. These new forms are a major departure from previous versions and have led to many telephone calls from concerned Members wishing to update their tax withholdings.
One of the most common questions we’ve received is “How do I increase my tax withholding by a specific dollar amount?” Unfortunately, as of 2022, the flat dollar amount tax withholding option is no longer available on either the IRS W-4P or the Colorado State Tax Withholding forms.
To assist with calculating your tax withholding, login to the Member Account Portal and use the Estimate Taxes function to see your current withholdings projection. If the projected amount isn’t enough, you may also enter an additional amount to be withheld. Then, when you’re ready, you may submit your tax withholding changes through the Member Account Portal or request the necessary forms from the Retiree Payroll Team. Your tax advisor may also assist you with completing the new forms. Completed and signed forms must be received by FPPA no later than the 10th of the month for the change to be effective in that month.
Another option: If the new forms do not allow you to deduct your desired withholding amount, you may also elect for FPPA to withhold no taxes. Then, request that your tax advisor complete estimated tax payment forms for the IRS and the Colorado Department of Revenue. These estimated payments allow you to elect a quarterly tax payment amount of your choice.
If you have questions, please call the Retiree Payroll team at (303) 770-3772, ext. 6200.