A complete payroll audit involves an examination of any subsidiary records, including payment records for services that were not classified as employment or wages. The Colorado Employment Security Act (CESA) 8-72-107 requires that all records must be open for inspection so that the records may be audited and verified at any reasonable time and as often as necessary. You are required to keep work records for a minimum of five years.
Ensure Proper Worker Classification
While the definition of employment in Colorado law is broad and inclusive, it is not limited to the common-law relationship of master and servant (as used by the Internal Revenue Service).
Worker Misclassification Reporting / Advisory Opinions
We accept complaints and conduct investigations regarding alleged misclassification of employees as independent contractors. We also provide a written advisory opinion concerning the classification of workers upon request.
We want to make sure you have the information and resources to fully understand and prepare for the audit process. If you have any questions or concerns about the audit process, contact the Division's Unemployment Insurance (UI) Navigator. The UI Navigator can help you understand the audit findings, the appeals process, answer questions, and provide advisory opinions regarding the proper classification of workers, as well as discuss available options for resolution. Call 303.318.9290 to speak with the UI Navigator.