The payment of unemployment benefits are funded through employer premiums. Employers are required to pay premiums through a quarterly premium-report and wage-report process.
Each year, we determine premium rates for employers based on a number of factors including the amount of money already paid and unemployment benefit payments made to former employees.
Employers must pay annual premiums for each employee's chargeable wages. The chargeable wage limits are:
Standard Rate - New employers begin at a standard rate depending on the type of business activity. Between 2004-2012, the standard rate consisted of three components: a base rate, a solvency surcharge and a surtax. More>
For 2013 and 2014, the standard rate consists of two components: a base rate and a bond principal rate. More>
Computed Rate - After an employer has paid wages for a sufficient number of quarters, the rate is eligible for a computed rate based on the experience of the business. More>
Bond Interest Repayment
In order to increase the financial health of the Unemployment Insurance Trust Fund and provide relief to Colorado employers, a bond transaction totaling $630 million was secured. The bond payment assessment is added to your premium payments and will save most businesses between $20–$120 per employee in 2013–2014. This bond turned off the solvency surcharge to businesses for calendar years 2013 and 2014 for the first time since 2004. Both Bond Interest Repayment assessments for 2012 (effective September 4, 2012) and 2013 (effective September 3, 2013) will continue to be billed until paid. More>
Federal Interest Repayment
In January 2010, Colorado joined more than 30 other states in borrowing money from the federal government in order to meet our obligation to pay unemployment benefits. Colorado is required to pay the interest accrued on all outstanding loans for the period of January 2011 through March 2011 no later than September 30, 2011. All Colorado employers will be subject to a reduction of Federal Unemployment Tax Act credits if Colorado does not make timely payment. Colorado paid the federal loan and all interest in June 2012. Federal Interest Repayment assessments for 2011 were effective, July 25, 2011. Any employers who have not paid this assessment will continue to be billed. More>
If you believe there is an error in the figures used to calculate your rate, you may file a written protest.