After you file a claim for UI benefits, you will receive a Notice of Wages and Possible Benefits in the mail or in your MyUI+ account. The form explains:
- The amount of benefits you are eligible to receive, if approved, and how that amount was calculated.
- The number of weeks you will be eligible for benefits.
- Information about how to Appeal or request a monetary reconsideration if you disagree with the decision.
The maximum amount of benefits you can receive per week in the state of Colorado is around 55% of your weekly wage over a 12-month time period. Visit the Colorado UI Benefits Estimator to estimate your potential benefits and see the current maximum benefit amount.
The first week of your claim is considered a waiting week. You must file a payment request and meet all eligibility requirements during this week, but you will not be paid. Your payments will start the following week, assuming you are still eligible for benefits and fulfill all requirements.
Your benefits may be reduced under the following circumstances:
A severance package may affect UI benefits. Be sure to report any severance payments when you file your weekly payment request. We may contact you for additional details to help determine if your severance pay is deductible.
Severance pay IS NOT:
- Your last paycheck
- Compensation for hours you worked
Severance pay IS:
- Any payment that is designated by your employer as a severance allowance paid to you because you are separated from employment and compensates you for a period of time that you may be unemployed.
Some or all of your unemployment benefits may be reduced if you:
- Owe court-ordered child support
- Have past-due federal or state taxes
- Previously received unemployment benefits that you were not entitled to, and did not repay the Overpayment, including from other states
You will be notified by the UI Division if your UI benefits will be applied to any of these types of debts.
Your unemployment benefits are taxable by both the federal and state governments. You can decide to have taxes automatically deducted from your payments, or you can pay the taxes later. You may change from one option to the other only once during your unemployment claim. Questions about taxes on UI payments should be directed to the Internal Revenue Service (IRS) or your tax professional.
By the end of January each year, CDLE will provide you with IRS form 1099-G. This form shows the amount of benefits you were paid during the previous year and the amount of income tax withheld, if you selected that option. You can access your 1099-G in your MyUI+ account.
Payment is made after your claim is processed and it is determined you qualify for benefits and you maintain your eligibility. In order to be paid benefits, you must request payment every week even while you are waiting for your claim to be processed and also during any appeals process. Remember that the first qualifying week on your claim will not be paid as it is the mandatory waiting week.
There are two methods of receiving your unemployment benefit payments: Direct Deposit or a Prepaid Debit Card. If you file your claim electronically, you can select one of these two methods when you file. If you filed your claim by phone, your default method is a prepaid debit card. To change your payment method, log into MyUI+ and go to "View and Maintain Account Information" and then "Payment Method Options and Tax Information."
You can avoid debit card fees by having your benefit payments deposited directly to your checking or savings account. If you had a Colorado unemployment claim at any time in the past and used the direct deposit option, be sure to update your payment selection. The bank account information you provided on your previous claim may no longer be valid, and you will need to make updates to your bank account information or switch to the prepaid debit card.
Bank Account Verification FAQs
- Why was my bank not valid for use/verified?
We use a service that is managed by a partner organization to validate bank account information. We do not get a reason for why the bank could not be validated, but not all banks participate in the validation service so non-traditional banks, such as those managed online or through smartphone apps may not be usable for unemployment insurance services with CDLE if they cannot be verified by our partners.
- What banks can I use for Direct Deposit?
We do not have a list of specific banks that can be successfully validated, however you should be able to use Direct Deposit on checking or savings accounts that are offered by traditional banks with physical brick and mortar locations. Those banks are more likely to participate in bank account validation services that CDLE uses.
- What if I do not want to get a new bank account at a traditional bank location?
You may select the Debit Card option and we will mail you a Reliacard for use with your account.
Prepaid Debit Card
You may have to pay fees when using your U.S. Bank ReliaCard® which are deducted from your benefit payments. You can find all the details you will need to know about the fees and services at usbankreliacard.com.