HB10-1087: End Automatic Employer Tax Withholding

• Eliminates the requirement for employers to automatically withhold Colorado income tax from employee wages, effective January 1, 2011

• Employers may only withhold Colorado income tax if both the employer and employee voluntarily agree in writing to the withholding arrangement

• Prohibits employers from requiring employees to consent to tax withholding as a condition of employment

• Updates the definition of "taxpayer" in the employer tax credit for hiring persons with developmental disabilities to reference employers eligible to withhold rather than those who do withhold

• Becomes effective 90 days after final adjournment of the general assembly (August 11, 2010) unless a referendum petition is filed, in which case it requires voter approval at the November 2010 general election