Colorado State Taxes suddenly withheld beginning February 15, 2021

Let me share a bit more information on this, @Phil419.

The Colorado tax table was updated on this payroll update: Payroll Update 22104.    You can access the list of updates made in this article: Latest payroll news and updates.
 

The information that we have in the articles is the latest so we cannot compare what specific percentages or amounts were updated. It would be best for you to reach out to the Colorado state agency so that they can explain the changes in detail.

I hope you find this helpful.  If I can assist with anything further, please don't hesitate to reach back out. Have a great week!

Since I have chosen the "Withholding Method Year 2019" for Federal tax and "Year 2019 and prior" for State tax under employee profile, the tax tables should not have forced the change, right? In 2019, withholding was based on number of exemptions.

Hi @Phil419,

Thank you for your prompt reply. 

QuickBooks Desktop (QBDT) marks payroll items as subject to, or exempt from, SUI according to your state's guidelines. 

You can also refer to this article: Troubleshoot incorrect state unemployment (SUI) or withholding (SIT) on paychecks. Another thing to take note as my peer @Jessica_young stated above, it's best to contact your state agency to confirm these changes.

Feel free to post a reply if you have other questions about payroll in QBDT. I'll be sure to get back to you.