Unemployment Insurance Premiums

Unemployment Insurance (UI) benefit payments are funded by the premiums paid by Colorado employers into the UI Trust Fund. Most employers* are required to pay UI premiums if they meet one or both of the following requirements:

• The employer paid wages of at least $1,500 in a calendar quarter during the current or previous calendar year.
   
• The employer employed at least one person for any part of a day in 20 weeks during the current or previous calendar year. This does not have to be be the same person for all weeks nor consecutive weeks.
   

*Domestic employers, nonprofit corporations, and agricultural employers have different liability criteria based on the amount of wages paid and the number of employees. Review the Employer Liability Chart page for more liability criteria and information.

Premium Rates

The UI Division determines employer premium rates annually based on a number of factors, such as the amount of premiums previously paid by the employer and any unemployment benefit payments made by the Division to former employees. Employers receive an annual Rate Notice in the mail in December that includes the employer rates for the upcoming calendar year.

Employers must pay premiums on the chargeable wages for each of their employees each calendar year. The chargeable wage limits are:

Visit the Premium Rates page for current year rate tables, Rate Notice information, and more.

2025 Rate Tables

Introductory Rate for New Employers

New employers or employers new to filing wages to the state of Colorado start paying UI premiums at an introductory rate based on the industry they support. This rate is typically assigned for only the first year of business activity for standard employers, or the first three (3) years for construction-related industry employers.

  Note

New employers in construction-related industries may be subject to a different introductory rate. If solvency surcharges are in effect, surcharges are the same for all employers including construction-related businesses. Visit the Introductory Rates page for introductory rate tables and more information.

Computed & Experience Rates for Employers

Experience rates, also called computed rates, are assigned to non-construction employers who have reporting history on file with the UI Division a of June 30 of any year. Experience rates are assigned to construction-related employers who have 36 months of reporting history as of June 30 or any year. Experience rates are based on the experience of the business, based primarily on three components:

• Premiums Paid: All contributions made by the employer over the life of their UI account.*
   
• Benefits Charged: All benefits charged to the employer of the life of their UI account.* 
   
• Average Annual Payroll: The average annual chargeable wages reported during the previous three state fiscal years (July-June).
   

*The life of the account also includes any predecessor employer history, when applicable.

Visit the Experience Rates page for more information on computed rates and calculating an employer's percent of excess.

Employer Rate Increases

Employer premium rates may increase for several reasons. Employers may notice a rate increase if:

• Their average annual payroll increased
   
• New UI benefits were paid to former employee(s) and charged to their account
   
• The business stopped paying wages for a period of time and lost its computed rate
   
• The level of the UI Trust Fund decreased. 
  Note: this would typically result in an across-the-board increase for all employers
   
• A Solvency Surcharge is in effect
   
• Inheritance of predecessor experience history, typically in instances of business acquisitions or mergers and reorganizations.

Preventing Higher Premiums

Improper benefit payments can result in higher employer premium rates. Improper payments are payments made in error and occur when the Division receives inaccurate information from claimants and employers, or when information is not received in a timely manner. 

Employers can help prevent improper payments and higher premiums by responding to all Division requests with complete and accurate information in a timely manner.

Preventing Improper Payments

Employers can help prevent improper payments and reduce costs to employers generally by:

• Reporting all hiring to the State Directory of New Hires by the due date.
   
• Responding promptly to any Request for Weekly Wage Verification requests.
   
• Providing complete and accurate employee separation information.

Costs of Non-Compliance

Failure to respond to Division requests in compliance with state and federal UI requirements may result in:

• Trust fund impacts doe to benefits paid to ineligible claimants.
   
• Increases in employer UI premiums.
   
• Possible fines and penalties.

Protesting Premium Rates

Employers may protest rates and benefit charges if the believe there is an error in the figures used to calculate their rate, or with the benefits charged to their account. Employers can submit a rate protest in MyUI Employer+.

  Important 

Employers can only protest rates during the rate protest period, which is typically 20 calendar days after the mailing date listed on their Rate Notice. The Division will not accept protests based on legislatively-mandated rates, including the Support Rate and the Solvency Surcharge.