In accordance with the Colorado Employment Security Act (CESA) 8-76-102 (5)(a), a solvency surcharge was assigned to all ratable employer accounts beginning in calendar year 2004. Ratable employers contribute premiums according to an established rate rather than reimburse the Unemployment Insurance (UI) Program dollar for dollar based upon the benefits charged against the account. Most employer accounts are ratable.
The purpose of the solvency surcharge is to maintain a sufficient monetary level in the UI Trust Fund, which ensures the UI Program’s ability to pay UI benefits as established in CESA. A short-term increase in the rate, because of the addition of the solvency surcharge, will result in an actual decrease in employers’ base rates as the balance of the UI Trust Fund increases.
For calendar year 2011 the base rate was based on the rate schedule using column heading 0 or Deficit. Because the UI Trust fund was at a deficit again this year, the 2012 chart for an employer's base rate will change. For calendar year 2012 the base rate will remain at the highest rated column heading 0 or Deficit. See CESA 8-76-103 (3)(b)(II)(B).
Form UITR-7, Notice of Employer’s Unemployment Rate, mailed to employers in November 2011, provides the combined rate for calendar year 2012. The yearly solvency surcharge increment is included in the combined rate and credited back to each existing employer for calendar year 2012 for ratable employer accounts.
The following Web pages provide additional information about the solvency surcharge:
If you have any questions or comments about the solvency surcharge, please contact us at:
Unemployment Insurance Employer Services, Premiums
P.O. Box 8789
Denver, CO 80201-8789
employer.services@state.co.us (Please type "solvency surcharge" in the subject line.)
303-318-9100 (Denver-metro area)
1-800-480-8299 (outside Denver-metro area)
