CO - Total Surcharge

Hi there, @kkennedy1.

Colorado total surcharge is automatically created as a payroll item once you've set up an employee which is subject to Colorado state taxes.

It's also possible that you already have an employee that was set up for the state of Colorado. Then, the system automatically recognized it when the payroll feature was installed. This is the reason why the payroll item for this state was created.

However, you can still remove this payroll item in your employee's information. Just follow these steps:

1. Go to the Employees menu and select Employee Center.
2. Right-click the name of the employee and select Edit Employee.
3. Click Payroll Info, then select Taxes.
4. In the Other section, select CO - Total Surcharge and click Delete.
5. Select OK and click No once a prompt comes out.
6. Select OK to close the window.

If ever your employee was accidentally taxed for something that shouldn't be, you can create a payroll liability adjustment in QuickBooks Desktop to correct it.

In case you need anything else, feel free to go back to this thread. This way, we can provide you further assistance in handling your account.

All of my employees are Colorado residents.  Is this a tax I'm supposed to pay?  I've never heard of it before.

Thanks for the reply, @kkennedy1.

A surcharge is a levy on workers' compensation premiums paid by insurers who underwrite workers' compensation insurance coverage in Colorado and employers who are authorized to self-insure. Funds generated by the surcharge are used by the Division of Workers' Compensation to offset the costs of administering the system. The surcharge is collected bi-annually from insurers, though self-insured employers are excluded from paying PCC surcharge since they are required to include cost containment (workplace safety) practices as part of their eligibility to self-insure. If you're unsure if you're supposed to pay the Colorado Total Surcharge, then I recommend reaching out to your State Tax Agency. 

Let me know if you have any additional questions or concerns about your QuickBooks. I'll be here. Have a beautiful day!