|
|
|
Overview of Colorado Employment Security Act, 8-70-114 OVERVIEW OF COLORADO EMPLOYMENT SECURITY ACT, 8-70-114 An employee leasing company (ELC) or professional employer organization (PEO) must obtain an annual certification from the Colorado Department of Labor and Employment (CDLE) in order to conduct business in Colorado. NOTE: ELCs are also known as PEOs; the terms are interchangeable. The requirements of CESA 8-70-114 apply to both ELCs and PEOs. Any reference within this Web page to an ELC also applies to a PEO. ELCs are required to pay wages and collect, report, and pay all payroll-related taxes from their accounts for all covered employees, including unemployment insurance (UI) taxes. During 2008 and 2009 ELCs may continue to submit their tax and wage reports under the account numbers they are currently using. The ELCs’ responsibility for reporting wages and paying UI taxes under their own account numbers must begin with all wages paid on or after January 1, 2010. At that time ELCs can no longer use the account number for the work-site employer or client. Work-site employers must notify CDLE of their relationship with an ELC if the ELC reports wages to the UI Program under the work-site employer’s account number. To conduct business in Colorado, an ELC must obtain the initial certification by March 23, 2009. This certification is valid until June 30, 2010. To obtain initial certification, ELCs must:
You may download the certification packet by clicking on the links to the forms above or clicking on the UI Business Forms link on the menu to the left. To request an application packet, send an e-mail to ui.leasing@state.co.us. According to CESA 8-76-104 (8), a transfer of experience shall not occur when:
The UI Program is in the process of revising:
Please read all sections of CESA 8-70-114 related to ELC laws and regulations. Below are links to current ELC laws, regulations, and the Employers Handbook followed by a description of relevant information:
For additional assistance, please contact UI Operations at:
Coemployer. A coemployer is either an ELC or a work-site employer. A contract must exist between the ELC and work-site employer as evidence of a coemployer relationship. Colorado Employment Security Act (CESA). CESA is the section of the Colorado Revised Statutes that governs the payment of UI benefits, the establishment and maintenance of an employer tax account, and wage reporting. Covered employee. This is an individual who is in an employment relationship with an ELC and a work-site employer and has received written notice of coemployment with the ELC. The terms covered employee and work-site employee are interchangeable. Employee leasing company (ELC). This is any person, business, or other entity that contracts with a work-site employer to provide services. The ELC as the employing unit or coemployer has the responsibility for payment of wages to the workers according to the ELC contract and to collect, report, and pay all payroll taxes. The term ELC is interchangeable with PEO. See CESA 8-70-114 (2)(b) for an explanation of the rights and responsibilities of an ELC or PEO. Employee Leasing Company Certification Fund (Fund). This is the State Treasury Fund to which ELC certification fees are deposited. The money in the Fund is used for implementation of SB 08-114. Professional employee organization (PEO). This is any person, business, or other entity that contracts with a work-site employer to provide services. The PEO as the employing unit or coemployer has the responsibility for payment of wages to the workers according to the PEO contract and to collect, report, and pay all payroll taxes. The term PEO is interchangeable with ELC. See CESA 8-70-114 (2)(b) for an explanation of the rights and responsibilities of an ELC or PEO. Regulations Concerning Employment Security (RCES). The RCES is the section of the Code of Colorado Regulations required to implement CESA. Regulations are adopted through a rules-hearing process and incorporated into RCES. Working capital. Working capital is the ELC’s current assets minus current liabilities as determined by generally accepted accounting principles. Work-site employee. This is an individual who is in an employment relationship with an ELC and a work-site employer and has received written notice of coemployment with the ELC. The terms covered employee and work-site employee are interchangeable. Work-site employer. This is any person, business, or other entity that procures the services of an ELC under an ELC company contract. The work-site employer retains direction and control of the work-site employees regarding responsibilities not shared between the ELC and work-site employer. | |