UI Premiums and Wages FAQ

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 the amount of wages paid and the number of employees.

Review the Employer Liability Chart page for more information.

New employers begin at a rate based on the industry they support. If the solvency surcharge is in effect, the surcharge is the same for all employers.

Employers in construction-related industries may be subject to a different base rate, however, the surcharges are the same. Review the Introductory Rates page for more information and current year introductory rates.

Experience rates, also known as computed rates, are assigned to employers who have paid wages for a sufficient number of quarters as of June 30 of the year prior to the new rate year. Experience rates are based on the experience of the business, based primarily on three components:

• Premiums Paid
• Benefits Charged
• Average Annual Payroll

Visit the Experience Rates page for more information on how experience rates are calculated.

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 
• A solvency surcharge is in effect
• Inheritance of predecessor experience history, typically in instances of business acquisitions or mergers and reporganizations.

Visit the UI Premiums page for more information about UI employer rates.

Employers may protest rates and benefit charges if they 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+.

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.
 

Colorado employers and third party administrators (TPAs) are required to submit quarterly wage detail reports and monthly employment data electronically in MyUI Employer+. 

Employers with good reason to submit paper wage reports by mail must have a valid non-electronic communications waiver on file. Review the Wage Reporting page for more information and resources.

• April 30: Quarter 1 wage reports, monthly employment data, and premium payments are due for January, February, and March.
• July 31: Quarter 2 wage reports, monthly employment data, and premium payments are due for January, February, and March.
• October 31: Quarter 3 wage reports, monthly employment data, and premium payments are due for January, February, and March.
• January 31: Quarter 4 wage reports, monthly employment data, and premium payments are due for January, February, and March.

Employers are assessed a $50 penalty for each quarter that a wage detail report(s) is delinquent. The penalty is $10 for each occurrence for new employers during the first four quarters of coverage.

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

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. Visit the Interest and Penalties page for more information.

• 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.
   

Please visit the Employer Liability Chart page for types of employees that are not covered by the Colorado Employment Security Act (CESA).

Review the Independent Contractors page for more information on determining if an individual is an independent contractor.

Instructions: If an individual is required to comply with instructions about when, where, and how to work, they are ordinarily considered an employee. The instructions may be verbal or written procedures that show how the desired result is to be accomplished. 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.

Training: If an individual is trained by an experienced employee, by correspondence, by required attendance at meetings, or other methods and is not free from control because the training is an indication that the employer wants the services performed in a particular method or manner. This is especially true if the training is given periodically or at frequent intervals.

Integration of Services: Integration of an individual’s services into the business operations generally shows that the individual is subject to direction and control. 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 an employer requires that a worker personally render a service, the employer is interested in the methods and the results, and who does the job. Lack of control may be indicated when an individual has the right to hire a substitute without the employer’s knowledge or permission.

Assistants: If an employer hires, supervises, and pays assistants, the employer generally has control over all individuals on the job. Sometimes one individual may hire, supervise, and pay other individuals. If that individual hires, supervises, and pays assistants at the employer’s direction, the hiring individual may be acting as an 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 indicates the individual may be an employee. 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: Set hours of work established by an employer indicates control. When an employer sets the hours of work, they prevent the worker from controlling their 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: If an individual must devote full-time services to the employer, the employer has control over how much time is spent working. Full-time employment does not necessarily mean an 8-hour day or a 5-day work 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 the employer’s premises does not, by itself, demonstrate control. However, it does imply that the employer has control, especially if the work could be done elsewhere. A person working in an employer’s place of business is physically within the direction and supervision of the employer. The use of desk space, a telephone, and clerical services provided by the employer places the worker within the direction and supervision of the employer. 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 the employer’s premises. This is true for employees of construction contractors.

Set order of Services: If an individual must perform services in an order or sequence set by the employer, it shows that the individual may be subject to the employer’s control. The individual is not free to follow their own patterns of work but must follow the employer’s established routines and schedules. Often, because of the nature of an occupation, employers may not set the order of the services. However, if they retain the right to do so, control is demonstrated.

Reports: Control is demonstrated if the individual is compelled to account for their actions by verbal or written reports submitted to the employer.

Payment for Services: An employee is usually paid by the hour, week, or month. 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: Employer payments for an individual’s business or traveling expenses indicate control over the individual.

Tools and Materials: If an employer furnishes tools and materials it is indicative of control over the worker. However, consideration must be given to the fact that in some occupational fields it is customary for individuals to use their own tools.

Investment: If an employer furnishes all of the necessary facilities it indicates the individual is an employee. 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.

A Liability Determination is a notice explaining that the UI Division has determined that an employer is responsible for providing UI coverage for its workers, and therefore required to submit quarterly reports and UI premium payments. Visit the Employer Liability Chart page for more information about liability determinations.

Employers and TPAs can submit bulk wage filings directly in MyUI Employer+. Visit the Wage Reporting page for more information.

Wage files may contain multiple quarters, as long as a valid year and quarter for the EAN is entered.

The file may contain multiple account numbers as long as valid EANs are entered for each record.