Pay Premiums and Report Wages FAQ | Department of Labor & Employment

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Premiums

Which employers are required to pay unemployment insurance?

Any business that paid wages of at least $1500 in a calendar quarter during the prior or current calendar year.

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Any business that employed at least one person for any part of a day in 20 weeks during the prior or current calendar year. This does not have to be the same person for all weeks nor consecutive weeks. Domestic employers, nonprofit corporations, and agricultural employers have different liability criteria based on amount of wages paid and the number of employees. Contact us for more information on the different liability criteria:

303-318-9100 (Denver-metro area)
800-480-8299 (outside Denver-metro area)
UI Employer Services P.O. Box 8789 Denver, CO 80201-8789

What is the beginning unemployment insurance rate for a new business in Colorado?

New employers begin at a standard rate depending on the type of business activity. For rate year 2024 the rate consists of the base rate, the support rate and the solvency surcharge.

Standard Rates for 2024

Business Classification

Base Rate

Support Rate

Surcharge Rate

Combined Rate

Non-construction

0.0153

.0017

.0135

0.0305

General Construction

0.0153

.0017

.0135

0.0305

Heavy Construction

0.0570

.0063

.01725

0.08055

Trades

0.0156

.0017

.00375

0.02105

Political Subdivision Group Rate

0.0020

Employers in construction-related industries may be subject to a different base rate, however, the surcharges are the same.
Contact UI Employer Services for more information:

303-318-9100 (Denver-metro area)
800-480-8299 (outside Denver-metro area)
UI Employer Services P.O. Box 8789 Denver, CO 80201-8789

What is the computed rate?

After an employer has paid wages for a sufficient number of quarters, it is eligible for a computed rate based on the experience of the business. The formula for a computed rate is:

Total premiums paid into the account minus Total benefits charged to the account divided by the Average chargeable payroll The result of this formula is the percent of excess.

Look for the percent of excess in the left-hand column of the standard premium rate chart and follow that line to the right across the chart to the column heading "Reserve Ratio 0.000 to 0.0004". The point of intersection is the base rate for 2024.

Add together the base rate, the support rate and the solvency surcharge rate and that will give you your Total Combined Rate for 2024.

What are the common reasons for a rate increase?

Some common reasons may include:

The average annual payroll increased.
There were new benefit charges to the account.
The level of the Unemployment Insurance Trust Fund decreased.
The business stopped paying wages for a period of time and lost its computed rate.
There is a solvency surchare for the current year.

How can I protest my rate?

If you believe there is an error in the figures used to calculate your experience rate, you may file a protest in MyUI Employer+. You may only file a written protest if you have obtained an electronic communications waiver from the UI Division.

Are corporations liable to pay unemployment insurance premiums on corporate officer's wages?

Yes. Corporate officers are considered to be employees of the corporation and their wages are chargeable along with any other remuneration in lieu of wages such as dividends ("S" corporation only), bonuses, draws, or distributions.

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Paying Premiums and Filing Wage Reports

How can I file my quarterly wage reports?: You may file your quarterly wage reports by using MyUI Employer+. Large TPAs with very high volume of filings may need to use a separate upload system. Please call Employer Services at 303-318-9100 if you believe you may need to upload with a high-volume application.
If you have been approved to send us paper forms, please report your wages by completing the UITR-1, Premium Report and UITR-1a, Wage Report.
How do I submit premiums payments?: When you submit your wage report, MyUI Employer+ will automatically calculate the premiums you need to pay. You can pay your premiums in the system, or you can mail your payment to Unemployment Insurance Employer Services, P.O. Box 8789 Denver, CO 80201-8789
When are quarterly premium and wage reports and premiums due?: They are due according to the following schedule: Reporting Quarter Must File and Pay By 1st quarter (January, February, and March) April 30 2nd quarter (April, May, and June) July 31 3rd quarter (July, August, and September) October 31 4th quarter (October, November, and December) January 31 If the due date falls on a Saturday, Sunday, or legal holiday, the report and its payment must be received on or by the next working day to be considered on time.
Can I change a previously submitted wage report?: You can correct previous wage reports in MyUI Employer+. If you have been approved to send us paper forms, please fill our the UITR-3 and send it back to us.

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Penalty and Interest Assessments

What are the penalty assessments on delinquent reports?

You are assessed a $50 penalty for each quarter that your Unemployment Insurance Premiums Report is delinquent. If you are a newly subject employer, the penalty is $10 for each occurrence during the first four quarters of coverage.

What are the penalty assessments on delinquent premiums?

If you owe delinquent premiums as of the computations date (June 30), you are assessed a delinquent - premium penalty equal to the amount of delinquent premiums or 1 percent (0.01) of the taxable payroll, whichever is less. This penalty is billed and payable in four quarterly installments.

How is interest charged?

Interest is charged at a rate of 1.5 percent (0.015) per month or any portion of a month on delinquent premiums and penalties.

How are payments applied to penalties, interest and delinquent premiums?

Unpaid Interest assessments from Federal Trust fund advances, starting with the earliest quarter in which premiums are due.
Unpaid nonprincipal-related bond repayment assessments, starting with the earliest quarter in which premiums are due.
Penalties owed, starting with the earliest quarter in which such penalty was incurred, Interest already charged, commencing with the earliest quarter in which such interest is due>
Interest accrued on unpaid premiums as of the date of the payment, commencing with the earliest quarter in which premiums are due.
Unpaid premiums or unpaid regular unemployment insurance benefits charged, starting with the earliest quarter in which premiums or reimbursements are due, Unpaid reimbursements for extended benefits charged, starting with the earliest quarter in which amounts are due.

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Liability

Who must pay unemployment insurance premiums?

You may be required to pay unemployment insurance premiums if you meet one or more of the requirements in the Employer Liability Chart.

Which workers are not covered for unemployment insurance purposes?

Please visit the Employer Liability Chart for a full list.

What are the two major concepts used to determine who is an independent contractor?

An independent contractor is free from control and direction by you in the performance of the service under the contract agreed upon by you and the worker. An independent contractor is customarily engaged in an independent trade, occupation, profession, or business for others related to the service performed for you.

What is a Liability Determination and why would I receive one?

A Liability Determination is a notice explaining that the Division of Unemployment Insurance has determined an employer is responsible for providing unemployment insurance coverage for its workers. The Liability Determination informs the employer that the workers are deemed employees in accordance with the Colorado Employment Security Act (CESA), therefore, the business is liable for paying unemployment insurance premiums by reporting employee's wages to the Division, typically on a quarterly basis.

Liability Determinations are issued to employers under the following scenarios:

A former worker files for unemployment insurance benefits and the Division determines the employer is liable pursuant to Colorado law. The Division reviews the wages a worker has earned from all employers during a specified period. If, during that period, a business has not reported the worker's wages and has not paid unemployment insurance premiums on those wages, the Division will make a determination as to whether the worker was engaged in services as an employee for the company. If it is determined the individual was, in fact, an employee, a Liability Determination will be issued notifying the employer of his or her responsibility to provide unemployment insurance coverage.

The Division conducts field audits to ensure employers are complying with the tax and benefit provisions of CESA. A Liability Determination must be provided to the employer when changes are made to an employer's account (for example, it is found that workers were not properly classified, were not reported as workers, or there were payroll-posting errors). The Liability Determination accompanies the audit findings and details the reason the changes were made to the employer's account. Visit the Employer Audits page for more information regarding the audit process.

The Liability Determination becomes final unless a written request for an appeal is received within 20 days of the mailing date of the notice of liability. Visit the Appeals page for more information on how to file an appeal.

What are the factors used to determine if you have an employer-employee relationship?

Instructions

A person who is required to comply with instructions about when, where, and how to work is ordinarily an employee. Some employees may work without receiving instructions because they are highly proficient in their line of work and can be trusted to work to the best of their abilities. However, the control factor is present if you have the right to instruct. The instructions may be verbal or written procedures that show how the desired result is to be accomplished.

Training

A person who is trained by an experienced employee, by correspondence, by required attendance at meetings, or other methods is not free from control because the training is an indication that you want the services performed in a particular method or manner. This is especially true if the training is given periodically or at frequent intervals. An independent contractor ordinarily uses his or her own methods and receives no training from the purchaser of services.

Integration of Services

Integration of another person's services into the business operations generally shows that the person is subject to direction and control. In determining whether integration exists, the scope and function of the business are identified and then a determination is made as to whether the services of the individual are merged into the business operations. When the success or continuation of a business depends upon the performance of certain kinds of services, the workers who perform those services may be subject to a certain amount of control by the owner of the business.

Personal Services

If you require that a worker personally render a service, you are interested in the methods and the results. You are interested not only in getting a desired result but also in who does the job. Lack of control may be indicated when an individual has the right to hire a substitute without your knowledge or permission.

Assistants

If you hire, supervise, and pay assistants, you generally have control over all persons on the job. Sometimes one worker may hire, supervise, and pay other individuals. This worker may hire others as the result of a contract in which the worker agrees to provide materials and labor and accepts the responsibility only for the attainment of a result. In this case, the hiring worker may be an independent contractor. On the other hand, if that person hires, supervises, and pays assistants at your direction, the hiring worker may be acting as your employee in the capacity of a supervisor or representative.

Continuing Services

The existence of a continuing relationship between an individual and the person for whom the services are performed is a factor indicating the existence of an employer-employee relationship. Continuing services may include work performed at frequent, recurring intervals, either on call or whenever the work is available. If the arrangement requires continuing or recurring work, the relationship is considered permanent. It makes no difference if the services are rendered on a part-time basis, are seasonal in nature, or are only for a short period of time.

Set Hours

The establishment of set hours of work by you is a factor indicative of control. When you set the hours of work, you prevent the worker from controlling his or her own time, which is a right of an independent contractor. Even when fixed hours are not practical because of the nature of the occupation, a requirement that the individual work at certain times is an indication of control.

Full-Time Services

f a worker must devote full-time services to your business, you have control over how much time is spent working. An independent contractor, on the other hand, is free to work when and for whom he or she chooses. Full-time employment does not necessarily mean an 8-hour day or a 5-day week. The meaning may vary with the intent of the parties or the nature of the occupation. These conditions should be considered in defining "full time." Full-time services may be required even if a full-time schedule is not specified verbally or in writing. For example, workers may be required to produce a minimum volume of business, which compels them to devote all of their working time to that business.

Location of Services

Work that is completed on your premises does not, by itself, demonstrate control. However, it does imply that you have control, especially if the work could be done elsewhere. A person working in your place of business is physically within your direction and supervision. The use of desk space, a telephone, and clerical services provided by you places the worker within your direction and supervision. The fact that work is done off the premises does indicate some freedom from control. However, it does not, by itself, mean that the worker is not an employee. In some occupations, it is necessary for services to be away from your premises. This is true for employees of construction contractors.

Set order of Services

If a worker must perform services in an order or sequence set by you, it shows that the worker may be subject to your control. This person is not free to follow his or her own patterns of work but must follow your established routines and schedules. Often, because of the nature of an occupation, you may not set the order of the services. However, if you retain the right to do so, control is demonstrated.

Reports

Control is demonstrated if the worker is compelled to account for his or her actions by verbal or written reports submitted to you.

Payment for Services

An employee is usually paid by the hour, week, or month. Independent contractors are paid a lump sum agreed upon for the total job. The guarantee of a minimum salary or the granting of a drawing account at stated intervals with no requirement for repayment of the excess over earnings tends to indicate the existence of an employer-employee relationship.

Expenses

Your payments for the worker's business or traveling expense are a factor indicating control over the worker. Conversely, a lack of control is demonstrated when the worker is paid for an entire job and must take care of all incidental expenses. Tools and Materials If you furnish tools and materials, this is indicative of control over the worker. If the worker furnishes the tools and materials, it indicates a lack of control. However, consideration must be given to the fact that in some occupational fields it is customary for employees to use their own hand tools.

Investment

A person who invests a significant amount of money into the facilities used to perform services for another tends to show an independent status. On the other hand, if you furnish all of the necessary facilities, this indicates the absence of a worker's independent status. Facilities include equipment necessary for the work, but not the tools, instruments, clothing, etc., that are provided by employees as a common practice in their particular trade.

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Wage Reporting

How do I submit bulk wage reports?: Most employers and TPAs can submit bulk wage filings directly in MyUI Employer+. Large TPAs with very high volume of filings may need to use a separate upload system. Please call Employer Services at 303-318-9100 if you believe you may need to upload with a high-volume application.
If my employer account number changed, do I need a new username?: No. You can use the same username that you've used before your account number changed. Just remember to put the new account number in each "S" record.
What is an end of record terminator, or a hard return?: Some programs "wrap" the text, meaning that if the text continues past the left margin, the words will wrap to the next line. However, at the end of each line, there has to be a carriage return
Can I submit multiple quarters in one file or do I need to submit separate files?: Answer The file may contain multiple quarters, as long as each "S" record's location 215-220 differentiates the quarters.
Can I file multiple account numbers in one file or do I need to submit separate files for each account number?: The file may contain multiple account numbers, also, as long as each "S" record's location 147-161 differentiates the separate account numbers.
I get an error after I click on the upload button. Why?: You are probably attempting to upload into the uploaded_files folder. The screen must be at the top level before attempting to upload. The file will programmatically move into the uploaded_files folder. Click on the Top folder.