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UNEMPLOYMENT INSURANCE TAX
OVERVIEW AND ANNOUNCEMENTS

 

NEW COLORADO LAW REGARDING THE MISCLASSIFICATION OF EMPLOYEES

House Bill (HB) 09-1310, which became effective June 2, 2009, requires the Unemployment Insurance (UI) Program to accept complaints and conduct investigations, when appropriate, regarding alleged misclassification of employees as independent contractors. more...

changes to the online application For BUSINESS Registrations

On August 6, 2009, the online application for business registrations, now titled the New Employer Registration Site, was updated to request additional information from employers. The additional information helps the UI Program ensure an employer has met the liability requirements of state statute and UI policies prior to setting up a UI account.

To register a business on the Internet, visit www.coworkforce.com, click on the Unemployment Online Services link, and select Register a New Business.

NOTE: The online New Employer Registration Site continues to allow most employers to register for both a UI account with the Colorado Department of Labor and Employment and sales and wage-withholding tax accounts with the Colorado Department of Revenue.

New paper-registration form, Application for Unemployment Insurance Account and Determination of Employer Liability

Effective August 7, 2009, employers must use Form UITL-100, Application for Unemployment Insurance Account and Determination of Employer Liability (Employer Application and Determination of Liability), to register for a Colorado unemployment insurance (UI) account with the Colorado Department of Labor and Employment.

In addition to obtaining information to better determine employer liability, the Employer Application and Determination of Liability form gathers information to determine the nature and purpose of any business acquisitions or reorganizations. Form UITL-67, Business Acquisition Questionnaire, is no longer used.

To download the Employer Application and Determination of Liability, visit www.coworkforce.com, click on Unemployment Online Services, select the Forms link in the Employers column, and click on Form UITL-100, Application for Unemployment Insurance Account and Determination of Employer Liability.

Employers still must use the Colorado Department of Revenue’s Form CR 0100, Colorado Business Registration, to register for sales and wage-withholding tax accounts.  The Colorado Business Registration is available at CR 0100.

NEW LEGISLATION IMPACTING EMPLOYEE LEASING COMPANIES

If you are an employee leasing company (ELC) or a professional employer organization (PEO) with clients in Colorado, Senate Bill (SB) 08-114 affects you. SB 08-114 requires ELCs and PEOs to obtain an annual certification from the Colorado Department of Labor and Employment in order to conduct business in Colorado. For more information, visit Employee-Leasing-Companies Legislation.

PRINTABLE VERSION OF COLORADO EMPLOYMENT SECURITY ACT NOW AVAILABLE

The 2008 Colorado Employment Security Act (CESA) is now available in a print-ready format. This Portable Document Format (PDF) of CESA does not have an index or headings on each page providing the section of statute appearing on the page.

If you wish to print a PDF copy, click on Unemployment Law, and then click on PDF Version.

ELECTRONIC VERIFICATION PROGRAM

Federal law prohibits employers from hiring or continuing to employ an unauthorized alien. The work status of new employees can be verified using the Electronic Verification Program (E-Verify), learn more...

Overview

The payment of unemployment insurance (UI) benefits is supported by the collection of taxes from employers. Employer accounts and liability are established once the employer has registered with the Colorado Department of Labor and Employment (CDLE), UI Operations.

The Colorado UI Program is responsible for administering the following key tax-related functions:

  • Determine employer liability and establish UI tax accounts.
  • Collect UI taxes through a quarterly employer tax-and-wage-reporting process.
  • Notify employers of annual tax rates.
  • Conduct field audits of employer records to ensure:
     
  • Wages are accurately reported.

  • The correct amount of UI taxes is paid.

  • Employers comply with UI laws and regulations.
     

  • Collect overdue UI taxes as well as penalties and interest.
  • Provide for fair and impartial hearings before a hearing officer when liability decisions are appealed.
     
More information can be found in UI Program publications, which are available on the Unemployment Information page on this Web site. To obtain hard copies of publications or to make an inquiry, send an e-mail to unemp.tax@state.co.us or call 303-318-9100 (Denver-metro area) or 1-800-480-8299 (outside Denver-metro area).

IMPORTANT INFORMATION FOR EMPLOYERS

New permit number on Unemployment Insurance Postage-Paid Envelopes

On 10/01/2007, the postage-permit number on all Unemployment Insurance (UI) Program postage-paid envelopes changes from a federal postage-permit number, 12634, Washington, D.C., to a state postage-permit number, 592, Denver, CO. When the new postage-permit number goes into effect, UI Program envelopes with the invalid postage-permit number will not be processed by the U.S. Postal Service and will be returned to sender. To avoid mailing delays and possible penalties, any postage-paid envelopes issued by the UI Program with postage-permit number 12634, Washington, D.C. must be destroyed or discarded. This ensures that mail is processed correctly and received in a timely manner.

Form UITR-2, Unemployment Insurance Tax Statement, Delinquent Accounts Procedural Change

Effective with the mailing of Form UITR-2, Unemployment Insurance Tax Statement, on June 1, 2007, Form UITD-14, Notice and Demand for Payment, has been eliminated. Data provided on the Notice and Demand for Payment is now included on the Unemployment Insurance Tax Statement. The Notice and Demand for Payment provided you with the dollar amount past due in unemployment insurance (UI) benefit charges or UI taxes, interest, and/or penalties on your account. That information is now provided on the Unemployment Insurance Tax Statement. Please carefully read the instructions on the statement to avoid any unnecessary penalties. An article entitled “Delinquent Unemployment Insurance Tax Accounts” is in the online Publication UITR-25, UI Quarterly News, for the second quarter of 2007, which will be published to the indicated Web page on June 5, 2007.

Now Effective: New Colorado Law Regarding Timely Return of Form UIB-290, Request for Job-Separation Information, and Timely Submission of an Appeal

House Bill (HB) 07-1285, which became effective August 3, 2007, changes the requirements that the Unemployment Insurance (UI) Program uses to determine whether a completed Form UIB-290, Request for Job-Separation Information, is returned timely or if an appeal is submitted timely. Learn more...

New Worker Documentation Requirements

House Bill 06S-1017, signed by Governor Owens on July 31, 2006, requires employers to document and affirm the legal work status of employees hired on or after January 1, 2007.  The bill authorizes CDLE to conduct random audits of employers to ensure compliance.  Learn more

Verify Social Security Numbers and Names Over the Internet

Employers can verify social security numbers and names of current and former employees over the Internet. Learn more...

Unemployment Insurance Tax-Avoidance Alert

CDLE actively identifies and pursues employers engaged in tax-avoidance activities. Learn more...

CONTACT US

Mail

UI Operations
P.O. Box 8789
Denver, CO 80201-8789

E-mail

unemp.tax@state.co.us

Telephone

303-318-9100 (Denver-metro area)
1-800-480-8299 (outside Denver-metro area)


FORM UITR-1, UNEMPLOYMENT INSURANCE TAX REPORT, DEBIT/CREDIT CHANGE

Form UITR-1, Unemployment Insurance Tax Report, now populates potential debit or credit amounts reflected in the Unemployment Insurance (UI) tax system. Read the instructions for Item 15 (“Debit or Credit Amount”) on the back of the tax report. An article entitled “Unemployment Insurance Tax Credits or Debits” is in the online Publication UITR-25, UI Quarterly News.

The policy change to discontinue issuing refund warrants to active employers provides a significant reduction in time required by UI Operations to maintain these accounts. You benefit from this time reduction because UI Operations will be able to address your needs more timely and efficiently. Those of you who, in the past, have requested refund warrants are well aware of the delay that sometimes occurred before receiving your refund. This delay is a result of the processing time required to issue refund warrants and is indicative of how time-consuming account maintenance for credits and debits can be. By providing you with your potential credit or debit, if any, you will be able to contribute a quarterly tax payment that more accurately reflects your account balance and, in turn, helps lessen the time and expense of processing debits and credits.

VERIFY SOCIAL SECURITY NUMBERS AND NAMES OVER THE INTERNET

Employers can verify social security numbers and names of current and former employees over the Internet. This service is available through the Social Security Administration and can only be used to ensure the records of current or former employees are correct for the purpose of completing Internal Revenue Service Form W-2, Wage and Tax Statement. The service is available to all employers and third-party submitters of wage data for this purpose. Use of this service helps to ensure employers’ wage records are accurate. Click here for more information and to use this service.

NOW EFFECTIVE: NEW COLORADO LAW REGARDING TIMELY RETURN OF FORM UIB-290, REQUEST FOR JOB-SEPARATION INFORMATION, AND TIMELY SUBMISSION OF AN APPEAL

House Bill (HB) 07-1285, which became effective August 3, 2007, changes the requirements that the Unemployment Insurance (UI) Program uses to determine whether a completed Form UIB-290, Request for Job-Separation Information, is returned timely or if an appeal is submitted timely.

In accordance with HB 07-1285, the UI Program must receive completed Requests for Job-Separation Information within 12 calendar days after the form is mailed; the postmark date is no longer considered in determining the timeliness of a Request for Job-Separation Information returned by mail.

Carefully follow the instructions on the Request for Job-Separation Information; send the completed form to P.O. Box 400, Denver, CO 80201-0400, or fax it to 303-318-9014.

In accordance with HB 07-1285, the UI Program must receive all appeals within 20 calendar days after the date the decision or determination is mailed; the postmark date is no longer considered in determining the timeliness of an appeal submitted by mail. The Industrial Claims Appeals Office must receive all appeals of hearing-officer decisions within 20 calendar days after the date the decision is mailed; the postmark date is no longer considered in determining the timeliness of an appeal submitted by mail.

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