Responding to UI Claims and Preventing Additional Charges
Employers play a crucial role in maintaining the integrity of the Colorado Unemployment Insurance Program (UI). Timely action and complete information protect both employers and the integrity of the UI program.
Responding promptly and completely to all UI Division requests helps:
- Ensure benefits are issued only to eligible claimants
- Avoid improper charges and appeals
- Support a fair, and efficient unemployment insurance process
The UI Division issues determinations based on the adequacy and timeliness of information provided by employers in response to official Division requests. These requests include fact-finding questionnaires, separation and wage information, and other documentation related to unemployment claims. Providing accurate and timely responses to Division requests saves time, reduces appeals, and protects employers from unnecessary costs.
Definition of Adequate Response
An adequate and timely response means the employer has provided sufficient and accurate information within the deadline set by law for the Division to make a determination on the issue (RCES 7.4.2.). Employers have seven (7) days to respond to the Division's initial information requests.
Failing to respond, or providing incomplete or unclear information, can lead to improper benefit payments to claimants, loss of employer protest rights, and additional charges to your employer account leading to higher UI costs (C.R.S. 8-79-102(5)(a)).
Inadequate Response
An employer’s response is considered inadequate if it does not contain enough information to determine the claimant’s eligibility for benefits. If an employer chooses not to protest a claim, or omit details about the job separation, it will be considered an inadequate response. The Division will still issue a determination based on the available information.
Late Response
Employers are given a set deadline of seven (7) days to respond to the Division’s initial request. Employers are given a set deadline of seven (7) days to respond to Division requests. If an employer responds after the deadline but before a decision is made on the claim, the employer’s information will be used, but the employer account will be monitored for future patterns of untimeliness.
No Response
No response is when an employer does not respond to the Division’s initial request within the seven (7) days timeframe, and does not respond within two (2) days to any additional requests. Not responding to Division requests can result in decisions based solely on available information provided by claimants.
Division Requests and Employer Charges
Timely participation in UI Division requests is required by law. Prompt and complete responses protect employers from improper charges and higher unemployment insurance premiums.
Failing to respond adequately to Division requests may cause:
- Payments made to ineligible claimants
- Increases in employer premiums and contribution rates
- Additional fines and penalties
The Division will asses benefits charges to the employer account if:
- The improper payment occurred because the employer (or agent) failed to respond timely or adequately.
- The employer (or agent) has shown a pattern of failing to respond timely or adequately to Division requests.
Avoiding Additional Employer Charges
When the Division receives a claim for unemployment benefits, all employers identified on the claim are notified if the claim is potentially chargeable to their account. If the claimant worked for the employer within the past 18 months, the employer may receive an Employer Questionnaire by email, or through the State Information Data Exchange System ((SIDES) if applicable) in accordance with the Division's electronic communications requirements. Employers must have a valid non-electronic communications waiver to receive and respond to Division requests by mail.
Employer questionnaires provide the employer the opportunity to:
- Explain the reason for the job separation
- Report other types of pay, such as severance or 401k/pension & retirement disbursement
- Report job-attached status
- Provide details specific to the type of separation (e.g., lack of work, quit, or discharge) and upload any supporting documentation
Responding to all Division Requests before the due date, and including accurate details about the separation helps the Division make correct eligibility decisions, preserves employer protest rights, and ensures the accurate calculation of employer premium rates.