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Colorado Department of Labor and
Employment UNEMPLOYMENT INSURANCE HANDBOOK FOR EMPLOYERS (Revised 09/2007)
Bill Ritter, Jr., Governor
Donald J. Mares, Executive Director TABLE OF CONTENTS Unemployment Insurance Integrity, Tax Audits Office Locations and Contact Information Unemployment Insurance Program Contact Information Do Employees Pay Into The Unemployment Insurance Program? Who Must Pay Unemployment Insurance Taxes? Which Workers Are Covered For Unemployment Insurance Purposes? Which Workers Are Not Covered For Unemployment Insurance Purposes? Which Employees Are Legally Authorized To Work? Partial Listing Of Payments That Are Considered Wages For Unemployment Insurance Tax Purposes Partial Listing Of Payments That Are Not Considered Wages For Unemployment Insurance Tax Purposes To Which State Must A Multistate Worker Be Reported? Who Is An Employee And Not An Independent Contractor? What Is The Registration Process For An Unemployment Insurance Tax Account? What Happens When You Acquire Another Employer's Business? How Are The Quarterly Tax-And-Wage Reports Completed? How Are The Quarterly Tax-And-Wage Reports Filed? How Are Tax Payments Submitted? How Can More Employee Wage Information Than The Paper Wage Report Accommodates Be Reported? When Are Quarterly Tax-And-Wage Reports Filed? When Must A Final Report Be Filed? Can Previously Reported Quarterly Tax-And-Wage Reports Be Corrected? What Are The Important Dates To Remember? What Are The Penalty And Interest Assessments For Late Reports And Delinquent Taxes? How Are Payments Applied To Penalties, Interest, And Delinquent Taxes? How Can Costs Be Reduced Or Avoided? What Records Must Be Maintained? What Is A Tax Rate, And How Is It Determined? When Is A Solvency Tax Surcharge Assessed? Calculating Your Solvency Tax Surcharge Rate Solvency Tax Surcharge Tax-Rate Schedule Tax Rate Schedule--Positive Excess Employers Tax Rate Schedule--Negative Excess Employers Why Should A Voluntary Tax Payment Be Made? Can The Payment Of Unemployment Insurance Benefits Impact Your Tax Rate? When Will You Receive Your Tax Rate? Will A Tax-Rate Notice Be Sent If You Have Been Designated As A Reimbursable Employer? Qualifying For Seasonal Status Unemployment Insurance Tax Forms State Unemployment Tax Act Dumping What Are The Obligations For Federal Unemployment Tax? What Is Your Role In The Payment Of Unemployment Insurance Benefits? How Is A Decision Made On Whether To Pay Unemployment Insurance Benefits? How Are Unemployment Insurance Benefits Calculated? What Is A Combined-Wage Claim? How Does Other Remuneration Affect Unemployment Insurance Benefits? What Are The Decisions That A Claimant May Receive? Seasonal Employment's Affect On Unemployment Insurance Benefits What If You Have A Job For The Claimant? What If A Claimant Refuses Work? What Are The Requirements For A Claimant To Receive Unemployment Insurance Benefits? How Does Regular Part-Time Employment Affect Unemployment Insurance Benefits? Can A Worker Receive Unemployment Insurance Benefits And Work Part-Time? Notifying Workers About Unemployment Insurance Benefits When Processing An Unemployment Insurance Claim, How Is The Information You Provide Used? What If You Provide False Information Or Do Not Provide Requested Information? What If You Disagree With A Decision? What Happens If You Disagree With The Hearing-Officer's Decision? Appealing The Industrial Claim Appeals Office's Decision What Is Benefit Payment Control's Function? What Is Your Role In Overpayment Matters? What Is The Benefit Accuracy Measurement Program? What Does A Benefit Accuracy Measurement Review Include? How Are Cases Selected For Review? How Can You Contact The Benefit Accuracy Measurement Program? What Is The Workforce Development Program? What Is Labor Market Information? How Does Colorado Use Data From Labor Market Information? Do You Need To Complete The BLS-3020 Report? Must You Provide Workers' Compensation For Your Employees? This handbook provides information about your rights and responsibilities as a Colorado employer in regard to the Unemployment Insurance (UI) Program. The information contained in this handbook is intended to help you understand the requirements of the Colorado Employment Security Act (CESA) and how the UI Program functions to ensure CESA requirements are met. Reading this handbook may save you time, effort, and money. For example, if you:
UI is not a welfare program. It is temporary income to help workers who are unemployed through no fault of their own. When a UI claim is filed, the claimant’s social security number (SSN) and alien permit number, if applicable, are verified. Only U.S. citizens and certain aliens are eligible to receive UI benefits. UI benefits are paid only to unemployed workers who meet the entitlement and eligibility requirements defined in CESA. The following are a few important facts about the value of the UI Program to our economy.
UNEMPLOYMENT INSURANCE INTEGRITY, TAX AUDITS OFFICE LOCATIONS AND CONTACT INFORMATION Offices of the UI Integrity, Tax Audits branch are located throughout the state. UI tax auditors are assigned to each office to inform you about UI tax reporting requirements and processes for Colorado employers. Before visiting a Tax Audits office in your area, call to verify the location has not changed.
UNEMPLOYMENT INSURANCE PROGRAM CONTACT INFORMATION
This Web site provides information about the UI Program. This Web site provides information about One-Stop Career Centers, child-care providers, and transportation services.DO EMPLOYEES PAY INTO THE UNEMPLOYMENT INSURANCE PROGRAM? It is unlawful for any employer to require an employee to release or waive any rights to UI benefits or to require payment or repayment into a UI benefits fund. You can be prosecuted for pursuing such activities. WHO MUST PAY UNEMPLOYMENT INSURANCE TAXES? You are liable to pay UI taxes starting with the first payroll issued during the calendar year. This liability requirement also applies if your account is reinstated. According to CESA, you may be required to pay UI taxes if, as of January 1, 1999, you meet one or more of the following requirements:
WHICH WORKERS ARE COVERED FOR UNEMPLOYMENT INSURANCE PURPOSES? Generally, an individual who is paid wages and performs a service for you is considered to be in covered employment, and you are required to pay UI taxes. However, there are specific exemptions under CESA. (For more information, please refer to "Partial Listing of Payments That Are Considered Wages for Unemployment Insurance Tax Purposes.") In addition, FUTA 3306 (I) requires the following workers to be in covered employment:
WHICH WORKERS ARE NOT COVERED FOR UNEMPLOYMENT INSURANCE PURPOSES? Workers are not employees covered for UI tax purposes if they are:
WHICH EMPLOYEES ARE LEGALLY AUTHORIZED TO WORK? The Bureau of Citizenship and Naturalization Service authorizes alien registration cards in various types and formats. To verify the validity of alien documentation provided to you prior to hiring a perspective employee, contact the UI Operations alien desk at 303-318-9060. A legal alien, who becomes separated from a job through no fault of his or her own, has the right to file for and collect UI benefits as long as all eligibility requirements are met. The Systematic Alien Verification for Entitlements (SAVE) Program is a service for verifying an employee’s immigration status that is available through the Department of Homeland Security Immigration and Customs Enforcement. To register with the SAVE Program, go to https://www.vis-dhs.com/EmployerRegistration.PARTIAL LISTING OF PAYMENTS THAT ARE CONSIDERED WAGES FOR UNEMPLOYMENT INSURANCE TAX PURPOSES Following is a partial listing of payments included in the definition of wages for UI tax purposes. For a complete listing please refer to CESA online at www.coworkforce.com/UIT.
PARTIAL LISTING OF PAYMENTS THAT ARE NOT CONSIDERED WAGES FOR UNEMPLOYMENT INSURANCE TAX PURPOSES Following is a partial listing of payments that are not included in the definition of wages for UI tax purposes. For a complete listing, please refer to CESA online at www.coworkforce.com/UIT.
TO WHICH STATE MUST A MULTISTATE WORKER BE REPORTED? When an employee works in Colorado and in another state or states, the following criteria, in priority sequence, are used to determine whether his or her services are Colorado employment. Location An employee’s services are considered Colorado employment if all or most of the work is in Colorado, with incidental services performed out-of-state. Service is considered incidental if it is temporary, transitory, or consists of isolated transactions. Base of Operations A base of operations is the place from which the employee starts work and to which he or she usually returns to perform the terms of the contract with you. An individual is considered a Colorado employee if some of an employee’s services are performed in Colorado and the base of operations is in Colorado. Place of Direction and Control When part of an employee’s services are performed in Colorado and the place from which you exercise general direction and control over the employee is Colorado, he or she is considered a Colorado employee. Primary Residency If an employee performs some services in Colorado and resides in Colorado, he or she is considered a Colorado employee. Reciprocal Agreement If, after applying all of the above criteria, the employee’s service is found not to be subject to any one state law, you may elect to cover all of the employee’s service in one state, under a reciprocal agreement.Ordinarily, as the employer of a worker, you represent the organization for which the employee performs services. However, there are situations where you, as the recipient of the benefit of the worker’s services, are not considered to be the employer for Colorado UI tax purposes. Such situations include when an employee performs services through a temporary-help contracting firm or an employee-leasing company or provides services for an agricultural crew leader. There could also be situations where it is unclear who is employing a worker. WHAT IS AN EMPLOYEE-LEASING COMPANY, A TEMPORARY-HELP CONTRACTING FIRM, A WORK-SITE EMPLOYER, AND AN AGRICULTURAL CREW LEADER? A worker can have two employers for the same services when the worker is paid by a temporary-help contracting firm or an employee-leasing company but performs services for a work-site employer. The temporary-help contracting firm or employee-leasing company and the work-site employer are called coemployers. Employee-Leasing Company If your business or a portion of your business meets the following two conditions, you are considered to be an employee-leasing company.
The responsibilities of an employee-leasing company include:
Employees of your employee-leasing company must know of and consent to the staffing contract. UI Operations is authorized to require certification and documentation from an employee-leasing company and to conduct any necessary reviews to verify compliance. Temporary-Help Contracting Firm Short-term assignments, like those given to employees of temporary-help contracting firms, do not meet the definition of employee leasing. A portion of your temporary-help contracting firm’s business can be considered an employee-leasing activity if that portion of your business meets the two conditions under “Employee-Leasing Company” on page 9. Work-Site Employer If you are a work-site employer who contracts with a business that engages in employee-leasing activity without filing the reports or paying the taxes required by UI Operations, you become liable for the reports and taxes due for the employees who perform services for you. As a work-site employer, you are not liable when contracting for temporary help. Therefore, it is important for you to be aware of your potential liability for UI taxes when contracting for leased employees. Agricultural Crew Leader If a crew leader furnishes and pays workers to perform agricultural labor and if no one has been designated in writing as the employer, these workers are considered employees of the crew leader. WHO IS AN EMPLOYEE AND NOT AN INDEPENDENT CONTRACTOR? In an employer-employee relationship, how you refer to your employee does not matter. You may refer to the employee as a partner, coadventurer, subcontractor, agent, contract laborer, or independent contractor. How you measure payments to the employee, what you call the payments, or whether the individual is a full-time, part-time, or a temporary employee also make no difference in determining an employer-employee relationship and whether wages are being paid. Employers are sometimes confused about whether an individual is an employee or an independent contractor. Two major concepts used to determine who is an independent contractor are:
Factors That May Determine if You Have an Employer-Employee Relationship Several factors may be considered in determining the employer-employee relationship. The weight given to the factors is not always constant. The degree of importance may vary depending on the occupation being considered. All factors do not apply to every situation and the order in which the factors appear is not significant. A complete list of determining factors is impossible. The facts in each case determine who are employees and who are independent contractors. In order to make an accurate determination, Form UITA-9, Worker/Contractor Status Questionnaire (Firm), and Form UITA-9a, Worker/Contractor Status Questionnaire (Worker), must be submitted to UI Operations. Based on these forms and information obtained from the workers and the business, an official ruling is made as to whether an individual is an employee or an independent contractor. Following are some of the factors that are considered in determining an employer-employee relationship: Instructions A person who is required to comply with instructions about when, where, and how to work is ordinarily an employee. 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. The instructions may be verbal or written procedures that show how the desired result is to be accomplished. Training A person who is trained by an experienced employee, by correspondence, by required attendance at meetings, or other methods is not free from control because the training is an indication that you want the services performed in a particular method or manner. This is especially true if the training is given periodically or at frequent intervals. An independent contractor ordinarily uses his or her own methods and receives no training from the purchaser of services. Integration of Services Integration of another person’s services into the business operations generally shows that the person is subject to direction and control. In determining whether integration exists, the scope and function of the business are identified and then a determination is made as to whether the services of the individual are merged into the business operations. 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 you require that a worker personally render a service, you are interested in the methods and the results. You are interested not only in getting a desired result but also in who does the job. Lack of control may be indicated when an individual has the right to hire a substitute without your knowledge or permission. Assistants If you hire, supervise, and pay assistants, you generally have control over all persons on the job. Sometimes one worker may hire, supervise, and pay other individuals. This worker may hire others as the result of a contract in which the worker agrees to provide materials and labor and accepts the responsibility only for the attainment of a result. In this case, the hiring worker may be an independent contractor. On the other hand, if that person hires, supervises, and pays assistants at your direction, the hiring worker may be acting as your 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 is a factor indicating the existence of an employer-employee relationship. 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 The establishment of set hours of work by you is a factor indicative of control. When you set the hours of work, you prevent the worker from controlling his or her 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 a worker must devote full-time services to your business, you have control over how much time is spent working. An independent contractor, on the other hand, is free to work when and for whom he or she chooses. Full-time employment does not necessarily mean an 8-hour day or a 5-day 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 your premises does not, by itself, demonstrate control. However, it does imply that you have control, especially if the work could be done elsewhere. A person working in your place of business is physically within your direction and supervision. The use of desk space, a telephone, and clerical services provided by you places the worker within your direction and supervision. 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 your premises. This is true for employees of construction contractors. Set Order of Services If a worker must perform services in an order or sequence set by you, it shows that the worker may be subject to your control. This person is not free to follow his or her own patterns of work but must follow your established routines and schedules. Often, because of the nature of an occupation, you may not set the order of the services. However, if you retain the right to do so, control is demonstrated. Reports Control is demonstrated if the worker is compelled to account for his or her actions by verbal or written reports submitted to you. Payment for Services An employee is usually paid by the hour, week, or month. Independent contractors are paid a lump sum agreed upon for the total job. 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 Your payments for the worker’s business or traveling expense are a factor indicating control over the worker. Conversely, a lack of control is demonstrated when the worker is paid for an entire job and must take care of all incidental expenses. Tools and Materials If you furnish tools and materials, this is indicative of control over the worker. If the worker furnishes the tools and materials, it indicates a lack of control. However, consideration must be given to the fact that in some occupational fields it is customary for employees to use their own hand tools. Investment A person who invests a significant amount of money into the facilities used to perform services for another tends to show an independent status. On the other hand, if you furnish all of the necessary facilities, this indicates the absence of a worker’s independent status. 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. Profit or Loss A person who can realize a profit or suffer a loss because of his or her services is generally an independent contractor; one who cannot realize a profit or suffer a loss is, in general, an employee. One or more of a variety of circumstances may establish opportunity for profit or loss. For example, the individual is subject to profit and loss if he or she:
Multiple Independent Services A person who works for a number of persons or firms at the same time can have an independent status if the worker is free from control by any of the firms. However, it is possible that a person may work for a number of people or firms and still be an employee of one or more of them. Offer of Services to General Public The fact that a person makes services available to the general public is usually an indication that he or she is an independent contractor. An individual may offer services to the public in a number of ways. The individual may have his or her own office and assistant; hang out a shingle in front of the home or office; hold business licenses; be listed in business directories or maintain business listings in telephone directories; or advertise in newspapers, trade journals, or magazines. Discharge Without Liability The right to discharge is an important factor in indicating that you are a worker’s employer. An independent contractor cannot be fired as long as he or she produces a result that measures up to the contract specifications. On the other hand, your right to discharge can be restricted because of a contract with a labor union. Such a restriction does not detract from the existence of an employer-employee relationship. Quit Without Liability An employee has the right to end the relationship with you at any time without incurring liability for breach of contract. An independent contractor usually agrees to complete a specific job, is responsible for its satisfactory completion, or is legally obligated to make good for failure to complete the job.
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WHAT IS THE REGISTRATION PROCESS FOR AN UNEMPLOYMENT INSURANCE
TAX ACCOUNT?
Whether you use the online-registration process or the
paper-registration process (completing and submitting Form CR
0100, Colorado Business Registration) to register your business
for a UI tax account, please provide your federal employer
identification number (FEIN) in the appropriate space. UI
Operations uses your FEIN to provide UI tax information to the
Internal Revenue Service, which in turn will facilitate your
filing of Form 940, Employer’s Annual Federal Unemployment Tax
Return, each year. (For more information, please refer to “What
Are The Obligations For Federal Unemployment Tax?” .)
Online Registration
At the Colorado Department of Labor and Employment (CDLE) Web
site, www.coloradoworkforce.com, click on the E-Services link.
Then select New Business Registration. You may then complete the
Colorado Business Registration online if: Paper Registration If you are not eligible for online registration, you can access
the Colorado Business Registration by visiting the CDLE Web
site, www.coloradoworkforce.com, and clicking on UI Business
Forms listed under “Unemployment Insurance Tax.” Here you may
download and print the form. Once you have completed the
Colorado Business Registration, mail it to UI Operations at P.O.
Box 8789, Denver, CO 80201-8789. You may also request that the Colorado Business Registration be
mailed to you by calling or e-mailing the Customer Contact
Center. WHAT HAPPENS WHEN YOU ACQUIRE ANOTHER EMPLOYER’S BUSINESS? Under most circumstances, you (the successor) become liable for
the previous employer’s (the predecessor’s) UI tax debt. In
addition, you receive the benefit claim forms for services
performed for the predecessor. You must complete Form UITL-67, Business-Acquisition
Questionnaire, and the Colorado Business Registration, to
register your business. The following information describes the various types of
acquisitions and their impacts to you as the successor. Total Acquisition When you acquire 100 percent (1.00) of an existing business, the
experience-rating record of the predecessor, including the
actual taxes, benefits, and payroll experience, passes to you.
You, as the successor, must complete and submit the
Business-Acquisition Questionnaire. The predecessor is
responsible for notifying UI Operations of your acquisition of
the business by completing Form UITL-2, Employer Change Request. Partial Acquisition When you acquire a portion of an existing business or a
segregable unit (90 percent [0.90] or more of the total number
of employees in covered employment for each of the four pay
periods immediately preceding the transfer to you), the
experience rating record of the predecessor, including the
actual taxes, experience, and payroll experience passes to you.
A segregable unit is “a unit of a business which has operated as
a separate entity for 12 calendar quarters immediately preceding
the computation date (June 30) and has kept continuous, separate
records of workers’ wages, taxes paid, and benefits charged.” When you acquire a clearly segregated unit, you and the previous
owner of the segregated unit may jointly request a transfer of
experience by filing Form UITR-14, Application for Partial
Transfer of Experience, within 60 days of the mailing date on
the notice of employer liability that is mailed to you. A
transfer of experience is “the proportional share of the
experience-rating record of the predecessor, including the
actual taxes, benefits, and payroll experience that is
transferred to you as the successor.” HOW ARE THE QUARTERLY TAX-AND-WAGE REPORTS COMPLETED? You must complete all items on Form UITR-1, Unemployment
Insurance Tax Report (UI Tax Report), and Form UITR-1a,
Unemployment Insurance Report of Workers Wages (UI Report of
Workers Wages). The UI Tax Report and the UI Report of Workers
Wages must include: The original tax-and-wage reports sent to you by UI Operations
must be returned to ensure that reports are processed timely and
accurately. Do not return photocopies or unauthorized
replications of the tax-and-wage reports to UI Operations for
processing. The data on the documents are scanned by an optical
character reader; photocopies or unauthorized, replicated forms
may not scan accurately. An incomplete or incorrect report may be considered a delinquent
report and subject to the same penalties that are incurred if
you fail to submit a report. When reporting monetary amounts, enter cents (including zeros)
in the appropriate columns. Do not use punctuation, including
dollar signs, periods, or commas. Other account numbers, such as the Department of Revenue number,
are not used for UI reporting purposes. When a credit or debit amount exists on your account, the credit
or debit amount is printed on the UI Tax Report. A credit
showing on your UI Tax Report must be subtracted from your
current balance; a debit must be added to your balance. You pay
the new amount due. NOTE: Refunds are issued to inactive employers. Inactive
employers are provided with refund information via Form UITR-66,
Request for Refund of Credit Balance. Unemployment Insurance Tax Report The monthly employment data reported is a count of all full-time
and part-time workers in covered employment (as defined in CESA)
who worked during the payroll period that includes the 12th of
the month. If there is no employment in the payroll period,
enter “0” (zero) into the boxes that designate the number of
employees for each month in the payroll period. Also enter zeros
into the dollars and cents fields that designate wage
information for the payroll period. The following are explanations of items you must understand to
correctly compute your taxes on the UI Tax Report: Computing Excess Wages UI taxes must be paid on the first $10,000 in total Colorado
gross taxable wages paid to each employee during each calendar
year. Wages that an employee earns in a calendar year beyond the
first $10,000 are excess wages and are not taxed. The following example shows how to compute wages in excess of
$10,000. The computation of excess wages is for an individual
earning $7,500 per quarter for the calendar year. Unemployment Insurance Wage Report In addition to providing your business name, unemployment
identification number, and the quarter and year being reported,
the UI Report of Workers Wages must contain the following
information for each employee you are reporting: The last line item on the UI Report of Workers Wages requires
the sum of all the total Colorado gross taxable wages paid this
quarter. The total of all employees’ wages must match the total
amount entered in Item 9 on the UI Tax Report. List total gross
taxable wages (not total taxable wages). NOTE: If you are submitting more than one page of the UI Report
of Workers Wages, enter the total of all pages in Item 9 of the
UI Tax Report. (For more information, please refer to “How Can
More Employee Wage Information Than the Paper Wage Report
Accommodates Be Reported?” .) HOW ARE THE QUARTERLY TAX-AND-WAGE REPORTS FILED? Online Filing CDLE’s Web site at www.coworkforce.com offers an alternative to
paper filing; click on File Your UI Tax/Wage Report in the left
column. The Web site provides detailed instructions for filing
tax-and-wage reports online. The online application offers the
following advantages to filing by paper: File Transfer Protocol File transfer protocol (FTP) is another convenient method for
the electronic transfer of UI wage information. FTP allows the
electronic transmission of wage information via a secured link
between your computer and the UI computer system. For more
information and assistance with filing wage reports via FTP,
call or e-mail the Customer Contact Center. Paper Filing Use the Tax-and-Wage Reports Mailed to You You receive the UI Tax Report and the UI Report of Workers Wages
during the third month of each quarter. The tax-and-wage reports generated for you by UI Operations
contain accounting information associated with your specific
account for the quarter and year for which it is generated. Your
tax-and-wage reports also contain data that is scanned and is
unique to that document. The scanning process relies on this
data being maintained with consistency and integrity. Do Not Replicate Tax and/or Wage Reports You may not duplicate or recreate the tax and/or wage reports in
any manner without obtaining approval from UI Operations. The
approval process involves extensive testing of your replicated
forms to ensure that they can be scanned and processed by the UI
Operations’ computer system. To get more information about
replication of tax and/or wage reports, visit the CDLE Web site
at www.coworkforce.com and click on File Your UI Tax/Wage
Report. HOW ARE TAX PAYMENTS SUBMITTED? Online Filing When you submit your tax report online, a printable payment form
is generated. Mail your payment with the payment form. Paper Filing A return envelope is provided with the UI tax-and-wage reports
that are mailed to you. Mail your payment with your tax-and-wage
reports. HOW CAN MORE EMPLOYEE WAGE INFORMATION THAN THE PAPER WAGE
REPORT ACCOMMODATES BE REPORTED? The UI Report of Workers Wages allows you to list up to 14
employees. If you need to report more employees than the form
accommodates, you have three options: WHEN ARE QUARTERLY TAX-AND-WAGE REPORTS AND TAXES DUE? Each quarter you are required to file the UI Tax Report and the
UI Report of Workers Wages. UI Operations mails these forms
during the third month of each quarter to all active employers. Reports are to be filed and payments are to be made according to
the following schedule. If the due date falls on a Saturday, Sunday, or legal holiday,
the report and its payment must be postmarked on or by the next
working day to be considered on time. You must file the UI Tax Report and the UI Report of Workers
Wages on time each quarter even if taxes are not owed, wages
have not been paid during the quarter (no UI Report of Workers
Wages is required), or you are a reimbursable employer. WHEN MUST A FINAL REPORT BE FILED? If you no longer employ covered workers, are no longer in
business, or have sold your business, you are required to file
final reports and make final payments by the end of the
reporting quarter during in which the change occurred. You must
also complete and submit the Employer Change Request. CAN PREVIOUSLY REPORTED QUARTERLY TAX-AND-WAGE REPORTS BE
CORRECTED? Form UITR-3, Unemployment Insurance Tax Report Adjustment (UI
Tax Report Adjustment), Form UITR-6a, Adjustment of Workers
Wages for Multiple Quarters (Multiple Quarter Adjustment), and
Form UITR-6c, Social Security Number (SSN) Corrections, are used
to adjust information that was previously submitted on the UI
Tax Report and/or the UI Report of Workers Wages. The UI Tax Report Adjustment, Multiple Quarter Adjustment, and
SSN Corrections can be obtained by visiting
www.coworkforce.com
and clicking on UI Business Forms in the left column; by
contacting UI Operations at P.O. Box 8789, Denver, CO
80201-8789; or by calling or e-mailing the Customer Contact
Center. Corrections to wage information submitted via FTP can be made by
resubmitting the information. The newly uploaded file overwrites
the previously uploaded file. WHAT ARE THE IMPORTANT DATES TO REMEMBER? January 31 is the last day you can voluntarily elect to have
your employees covered under CESA for the preceding year. March 14 is the deadline to submit a voluntary-tax payment to
lower the tax rate for that particular year. On June 30 of each year, employers with delinquent taxes have a
penalty computed equal to the taxes due or 1 percent (0.010) of
the taxable wages in the previous calendar year, whichever is
less. In compliance with CESA 8-79-104 (1)(c), this penalty is
payable in four quarterly payments during the current calendar
year. You have 15 calendar days after the mailing date of Form UITR-7,
Notice of Employer’s Tax Rate, to request a redetermination of
the tax rate for the current year. You have 20 calendar days after the mailing date of Form UIB-6,
Notice of Decision, to appeal a determination regarding the
payment of UI benefits. UI Appeals must receive your written
appeal within 20 calendar days after the date the UI Program
mailed the decision. You have 12 calendar days after the mailing date of the Request
for Job-Separation Information to complete and return this form.
The UI Program must receive the completed Request for
Job-Separation Information within 12 calendar days after the
date the UI Program mailed the form to you. (For more
information, please refer to “Timely Return of Form UIB-290,
Request for Job-Separation Information” on page 34 and “UIB-290,
Request for Job-Separation Information” on page 41.) You have 60 calendar days after the mailing date of Form UIA-20,
Statement of Benefit Charges, to submit a protest regarding any
charges/credits issued to your account. Prompt notification of address changes helps to ensure you
receive important forms and information regarding UI taxes and
benefits in a timely manner. Online Address Change Go to www.coloradoworkforce.com, and click on
Employer-Change-of-Business-Address in the left column. The
online address-change application allows you to change one or
more of the addresses you use for UI tax and benefits purposes.
Paper Address Change Paper address changes must be made by completing and submitting
the Employer Change Request. You can download or request a paper
copy of this form at www.coloradoworkforce.com; click on UI
Business Forms in the left column. You can also request a paper copy of this form by calling or
e-mailing the Customer Contact Center. WHAT ARE THE PENALTY AND INTEREST ASSESSMENTS FOR LATE REPORTS
AND DELINQUENT TAXES? To avoid penalty and interest charges, the UI Tax Report, the UI
Report of Workers Wages, and proper payment must be submitted or
postmarked on or before the due date. (For more information on
due dates, please refer to “When Are Quarterly Tax-and-Wage
Reports and Taxes Due?” on page 18.) If the due date falls on a
Saturday, Sunday, or legal holiday, your reports and payment
must be postmarked on or before the next working day. Electronic
filing must be completed on or before the due date; no grace
period is granted for electronic filing. Penalty Assessments Delinquent Reports You are assessed a $50 penalty for each quarter that your UI Tax
Report and UI Report of Workers Wages are delinquent. If you are
a newly subject employer, the penalty is $10 for each occurrence
during the first four quarters of coverage. If you are late in
filing the UI Tax Report and the UI Report of Workers Wages,
enter the appropriate penalty amount, including dollars and
cents, in Item 14 of the UI Tax Report. Use zeros to designate
no dollars and/or no cents. Delinquent Taxes If you owe delinquent taxes as of the computation date (June
30), you are assessed a delinquent-tax penalty equal to the
amount of delinquent taxes or 1 percent (0.01) of the taxable
payroll, whichever is less. This penalty is billed and payable
in four quarterly installments during the following calendar
year. To avoid assessment of the delinquent-tax penalty, you
must pay all delinquent taxes by June 30 each year. Form UITR-2, Unemployment Insurance Tax Statement (Tax
Statement), serves as the only notice and demand for payment
regarding delinquent benefit charges or tax, interest, and/or
penalties. The “Reporting Time Table” on the reverse side of the
Tax Statement provides specific details about paying your taxes
timely. If you are assessed a delinquent-tax penalty, you will receive
Form UITR-37, Unemployment Insurance Delinquent Tax Penalty
Statement, which provides you with the information used to
calculate your delinquent-tax penalty. You must submit the
entire amount due or the first of your four quarterly
installment payments along with a signed copy of the statement.
Interest accrues on this penalty at the rate of 1.5 percent
(0.015) per month. Interest Assessments Interest is charged at a rate of 1.5 percent (0.015) per month
or any portion of a month on delinquent taxes and penalties. To
avoid an interest charge for the next month, full payment must
be received by the 28th day of the current month. If you are
delinquent in the payment of taxes, you must enter the
appropriate interest amount, including dollars and cents, in
Item 13 on the UI Tax Report. Use zeros to designate no dollars
and/or no cents. HOW ARE PAYMENTS APPLIED TO PENALTIES, INTEREST, AND DELINQUENT
TAXES? If payment is received with a tax report, payment is applied to
any penalty, then interest, and then tax due for the
accompanying tax report. Any monies remaining are applied in the
sequence described below. Payments are first applied to the oldest quarter of delinquency
and then to the following quarters until all penalties,
interest, and taxes are paid or the payment is depleted. For
each quarter, payment is applied as follows: HOW CAN COSTS BE REDUCED OR AVOIDED? To reduce or avoid costs: Tax auditors from the UI Program routinely examine employer
books and records pertaining to the business. These audits,
which occur at your work site, entail a detailed examination of
all your records. A complete payroll audit involves an
examination of subsidiary records, including the examination of
cash-disbursement records of money paid to workers for services
performed that you did not classify as employment or wages. CESA
requires that all of your records the UI Program determines to
be necessary in its administration of CESA must be open for
inspection at any reasonable time and as often as necessary. WHAT RECORDS MUST BE MAINTAINED? You are required to keep business records for at least 5 years.
For each payroll period, your records must show: Your records must show the name, state of residence, and SSN for
each worker. You must require all new workers to provide: -or- For each employee, your records must show: If an employee who normally works full-time works less than
full-time hours during any payroll period, your records must
show: • The amount of time lost. • The reason for the time lost, including not being available
for work. If there is more than one reason, the amount of time
lost is recorded for each reason. WHAT IS A TAX RATE, AND HOW IS IT DETERMINED? Each year, UI Operations is required to notify you of your UI
tax rate. Following are the types of rates that may be assigned
to you depending on the status of your business. (For more
information, please refer to the various rate codes in the
“Glossary” .) Standard Rate Effective July 1, 1997, if you are an employer newly subject to
pay UI taxes, you are assigned a standard rate of 1.7 percent
(0.017) or a computed rate, whichever is higher. Standard Industry Rate Effective January 1, 2002, if you are an employer in the
construction industry who is newly subject to UI tax, you are
assigned an industrial tax rate based on the 3-digit industry
code (236, 237, 238) found in the North American Industry
Classification Code manual. Businesses in the construction
industry are subject to a higher initial tax rate because the
industry is subject to more periods of unemployment due to
factors such as inclement weather. Experience Rating When you become an experience-rated employer, your tax rate is
affected by your account history and you are assigned a computed
rate. If you pay more taxes into your account than you have
benefits charged, the result is a low tax rate. However, if you
have more benefits charged to your account than you paid in
taxes, the result is a high tax rate. Computed Rate A computed rate is based on a formula using the activity on the
employer’s account, which includes length of time as a taxable
employer; taxable payroll reported; taxes paid into the UI Trust
Fund; and benefits charged to the employer and paid out of the
UI Trust Fund. An employer does not receive a computed rate
until the employer has been benefit chargeable for four quarters
(the last four of five previously completed quarters) prior to
the June 30 computation date for UI tax rates. Employers in the
construction industry must file tax-and-wage reports for 36
months prior to the July 1 computation date before qualifying
for a computed tax rate. Once an employer meets the requirements
to receive a computed rate, a computed rate is assigned. The
computed rate replaces the previously assigned standard rate as
the employer’s base rate. A percentage of excess is used to determine an employer’s
computed tax rate. Employers who have paid in more UI taxes to
the UI Trust Fund and have paid out less in UI benefits are
assigned a positive percent of excess. Employers who have paid
in fewer taxes to the UI Trust Fund and have paid out more in UI
benefits are assigned a negative percent of excess. Employers
with a positive percent of excess are assigned a lower computed
tax rate, while employers with a negative percent of excess are
assigned a higher computed tax rate. NOTE: The percent of excess is computed by subtracting the
benefits charged to an employer account from the taxes paid to
that account and dividing the result by the average annual
taxable payroll. The percentage is computed to the nearest one
percent. Tax Surcharge A tax surcharge is added to all standard tax rates and some
computed tax rates. The tax surcharge supports administrative
costs. In addition, the tax surcharge supports a general pool
fund used to pay UI benefits not directly charged to an
employer. For example, when a full award is granted to pay UI
benefits on a job separation that meets the criteria under CESA
for domestic abuse, the employer account is not charged for UI
benefits paid on the claim. Instead, paid UI benefits are
charged to the general pool fund. A tax surcharge is not assessed on employers who have had less
than a total of $100 charged to their accounts from UI benefits
paid out in the last three state fiscal years prior to the July
1 tax-rate computation date. Per CESA 8-76-102 (4)(d), the tax surcharge rate is 0.22 percent
(0.0022). WHEN IS A SOLVENCY TAX SURCHARGE ASSESSED? In accordance with the Colorado Employment Security Act 8-76-102
(5)(a), a solvency tax surcharge (STS) is assessed when the UI
Trust Fund balance, as of June 30 of any year, is equal to or
less than nine-tenths of one percent (0.009) of the total wages
reported by ratable employers for the calendar year or the most
recent available four consecutive quarters prior to the last
computation date (June 30). An STS ensures the ability of the UI
Program to pay UI benefits. This STS is added to all ratable
employers’ standard, standard industry, or computed tax rates,
beginning with the next calendar year. This surcharge can never
exceed the limit on solvency tax defined in the “Solvency Tax
Surcharge Tax-Rate Schedule” on page 26. The surcharge is not
assessed if you are a state agency, political subdivision, or
nonprofit organization, as described in IRC 401 (a), 501 (a),
and 501 (c)(3) and you have elected the reimbursement method of
payment. The STS is increased by the established yearly increments shown
in the “Solvency Tax Surcharge Tax-Rate Schedule” on page 26.
The yearly increments continue until the limit on the solvency
tax is reached or until the UI Trust Fund balance is greater
than nine-tenths of one percent (0.009) of the total wages
reported by ratable employers for the calendar year or the most
recent available four consecutive quarters prior to the last
computation date (June 30). When an STS is assessed for the current rate year, information
is available on the UI Tax Web site at
http://www.coworkforce.com/UIT/STS/default.asp.
CALCULATING YOUR SOLVENCY TAX SURCHARGE RATE To calculate your STS rate for a given year, add the STS yearly
increment for that year, which is based on your percent of
excess, to your STS rate for the previous year. NOTE: In accordance with House Bill 05-1208, the STS adjustment
was in effect for calendar year 2006 only. In the example above,
the 2006 yearly increment of .006 was credited back to the
employer. *The maximum STS for percent of excess +1 is .020. In the scenario above, this account’s STS for 2007 of .019 plus
the 2008 STS increment of .004 equals .023. This is in excess of
the maximum limit for the percent of excess +1 (see the Solvency
Tax Surcharge Tax-Rate Schedule on page 26). Therefore, this
employer’s STS for 2008 is the maximum STS limit of .020. Examples of Solvency Tax Surcharge Calculations For a standard new employer with liability date of 02/01/2006: This account requires 12 months of chargeability as of
06/30/2007 for a computed rate in rate year 2008. *Employers whose initial increment is in 2006 are not eligible
for the STS Incremental Adjustment. House Bill 05-1208 specifies
that only those employers who see an incremental increase to the
previous year’s STS rate are eligible. **The maximum STS for percent of excess +3 is .013. For a standard new employer with liability date of 01/01/2007: This account needs 12 months of chargeability to achieve a
computed STS. The account will achieve this requirement as of
the 06/30/2008 computation date for the 2009 rate year. In this
scenario, rate year 2007 and rate year 2008 will receive the
standard STS. For a construction-industry new employer with a liability date
of 03/31/2005: This account requires 36 months of benefit chargeability to
achieve a computed STS. The account will achieve this
requirement as of the 06/30/2008 computation date for the 2009
rate year. For a construction-industry new employer with a liability date
of 01/31/2004: This account requires 36 months of benefit chargeability to
achieve a computed STS. The account will achieve this
requirement as of the 06/30/2007 computation date for the 2008
rate year. SOLVENCY TAX SURCHARGE TAX-RATE
SCHEDULE TAX RATE SCHEDULE−POSITIVE
EXCESS EMPLOYERS TAX RATE SCHEDULE−NEGATIVE
EXCESS EMPLOYERS WHY SHOULD A VOLUNTARY TAX PAYMENT BE MADE? You may lower your base tax rate for a particular calendar year
by making a voluntary tax payment. However, you are eligible to
make a voluntary tax payment only if you have been assigned a
computed rate (rate code 1). This payment must be postmarked on
or before March 14 to qualify for a rate reduction for that
year. Voluntary tax payments are first applied to any penalty,
then to interest, and then to delinquent taxes on your account.
A Notice of Employer’s Tax Rate is mailed to you at the end of
the calendar year. Form UITR-7a, Voluntary-Tax-Payment
Instructions, is enclosed if you have been assigned a computed
rate (rate code 1). For additional information or help in
computing the amount of a voluntary tax payment, call the
Customer Contact Center. CAN THE PAYMENT OF UNEMPLOYMENT INSURANCE BENEFITS IMPACT YOUR
TAX RATE? The payment of UI benefits can impact your tax rate. UI
Operations notifies you of the potential charge to your account
on Form UIF-290, Notice of Unemployment Insurance Claim, Wages
Reported, and Potential Charges. The potential charge is
approximately one-third of the wages the claimant earned during
the base period of the claim. The base period is the first four
of the last five completed calendar quarters preceding the date
the claim is filed. The wages earned by the claimant during the
base period are used to determine the weekly benefit amount
(WBA) and the maximum benefit amount (MBA) payable. You can estimate the potential effect on your tax rate by adding
the potential charge to any benefits previously charged to your
account and then recalculating the rate. However, the fund
balance may change on the next computation date (June 30). The
potential rate computed is based on the last available fund
balance. NOTE: The rate computation formula is: base rate + tax surcharge
(when applicable) + solvency tax surcharge (when applicable) =
combined rate. WHEN WILL YOU RECEIVE YOUR TAX RATE? Active employers are notified annually of their UI tax rate on
the Notice of Employer’s Tax Rate. The Notice of Employer’s Tax
Rate shows your account number, accumulated taxes paid,
accumulated benefits charged, average annual taxable payroll,
percent of excess, and the combined tax rate. If you find errors
on the Notice of Employer’s Tax Rate, you must notify UI
Operations in writing within 15 calendar days of the date on the
notice. WILL A TAX-RATE NOTICE BE SENT IF YOU HAVE BEEN DESIGNATED AS A
REIMBURSABLE EMPLOYER? If you are a nonprofit organization, as described in federal IRC
501 (c)(3), or you are a political subdivision and you are
designated as a reimbursable employer, you will not receive a
Notice of Employer’s Tax Rate. NOTE: If you are not a tax-paying employer, Item 12 of the UI
Tax Report, shows 0.0000 as your tax rate. QUALIFYING FOR SEASONAL STATUS To qualify for seasonal status, your business must operate for
less than 181 days during a calendar year or must have seasonal
occupations for which you employ workers for less than 181 days
during a calendar year. Once UI Operations grants you seasonal status, your employees
cannot draw UI benefits based on wage credits earned during the
determined season unless they are unemployed during the season. To request seasonal status, you must complete and submit Form
UITL-5, Request for Seasonal Determination. You can download
this form at www.coloradoworkforce.com; click on UI Business
Forms in the left column. You can also request a paper copy of
this form by calling or e-mailing the Customer Contact Center. Employers with seasonal status must report wages earned during
the applicable season and pay UI taxes accordingly. UNEMPLOYMENT INSURANCE TAX FORMS You can download or request copies of most of the forms
described below by going to www.coworkforce.com and clicking on
UI Business Forms in the left column. You can request copies of
any of the forms by calling or e-mailing the Customer Contact
Center. Forms All Employers Must Complete and Submit Form CR 0100, Colorado Business Registration You must complete and submit the Colorado Business Registration
or register your business online if you have one or more
employees in Colorado. You are required to register your
business with the Colorado Department of Revenue and CDLE
immediately after starting a business that has employees who
work in Colorado. (For more information, please refer to “What
Is the Registration Process for an Unemployment Insurance Tax
Account?” .) Form UITR-1, Unemployment Insurance Tax Report (UI Tax Report),
and Form UITR-1a, Unemployment Insurance Report of Workers Wages
(UI Report of Workers Wages) The UI Tax Report and the UI Report of Workers Wages are mailed
to you on a quarterly basis if you were an active employer
during the reporting quarter. You must complete and submit these
forms or file your tax-and-wage reports online each quarter.
Filing these reports serves two purposes. On the UI Tax Report,
you provide total Colorado gross taxable wages paid this
quarter, taxable wages, and excess wages used to calculate the
total tax amount due for the quarter. On the UI Report of
Workers Wages, you provide detailed employee information (for
example, SSN, name, and total Colorado gross taxable wages paid
this quarter) that is used in the event a claim for UI benefits
is filed. (For more information, refer to “How Are the Quarterly
Tax-and-Wage Reports Completed?” and “How Are the
Quarterly Tax-and-Wage Reports Filed?” .) Other Forms Form UITR-7, Notice of Employer’s Tax Rate The Notice of Employer’s Tax Rate is mailed annually to all
active, tax-paying employers. It informs you of your tax rate
for the following calendar year. If changes are made to your tax
rate after the annual mailing, a corrected Notice of Employer’s
Tax Rate is generated and mailed to you. Form UITR-3, Unemployment Insurance Tax Report Adjustment, Form
UITR-6a, Adjustment of Workers Wages for Multiple Quarters, and
Form UITR-6c, Social Security Number (SSN) Corrections The Unemployment Insurance Tax Report Adjustment, the Adjustment
of Workers Wages for Multiple Quarters, and the SSN Corrections
are used to correct errors in one or more previously submitted
UI Tax Report, correct errors in one or more previously
submitted UI Report of Workers Wages, and correct a name or SSN
previously reported on one or more UI Tax Report and/or UI
Report of Workers Wages. Form UITA-9, Worker/Contractor Status Questionnaire (Firm), and
Form UITA-9a, Worker/Contractor Status Questionnaire (Worker) The Worker/Contractor Status Questionnaire (Firm) and the
Worker/Contractor Status Questionnaire (Worker) must be
completed and submitted to UI Operations when questions arise as
to whether a worker should be considered an employee or an
independent contractor. The Worker/Contractor Status
Questionnaire (Firm) addresses contract-labor issues from the
perspective of the business, while the Worker/Contractor Status
Questionnaire (Worker) addresses contract-labor issues from the
perspective of the worker. Form UITD-4, Installment Payment Agreement The Installment Payment Agreement is generated and mailed to you
if you request that an installment payment agreement (IPA) be
initiated for the purpose of paying delinquent taxes or
delinquent benefits charges, interest, and penalties owed. The
form informs you of the total amount due by quarter; the
down-payment amount; the monthly, installment-payment amounts;
the respective due dates; and the terms and conditions of the
IPA. Upon receipt of the IPA, sign and return the form with your
down payment. Form UITR-37, Unemployment Insurance Delinquent-Tax Penalty
Statement, and Form UITA-6, Notice of Payment Due The Unemployment Insurance Delinquent-Tax Penalty Statement and
the Notice of Payment Due are used to notify you that a penalty
amount has been imposed on delinquent taxes owed and to provide
an explanation of the charges. According to CESA 8-79-104
(1)(c), if you have delinquent taxes as of the tax-rate
computation date (June 30), an additional penalty amount is
assessed. (For more information, refer to “What are the Penalty
and Interest Assessments for Late Reports and Delinquent Taxes?”
.) Form UITR-14, Application for Partial Transfer of Experience The Application for Partial Transfer of Experience is completed
and submitted to request a proportionate share of the UI taxes
paid, benefits charged, and payroll reported be transferred from
an employer who is already liable to pay UI taxes. The purchased
portion of the business must have maintained separate records of
the taxes paid, benefits charged, and payroll reported in order
to establish a basis for this transfer. This form must be
submitted within 60 days of the mailing date on Form UITL-3,
Notice of Employer Liability and Unemployment Insurance Tax
Account Number. You and the other employer must sign the
Application for Partial Transfer of Experience. Form UITL-59, Approval of Reciprocal Agreement, Form UITL-60,
Partial Approval of Reciprocal Agreement, and Form RC-2, Notice
to Employee for Colorado Unemployment Insurance Coverage The Approval of Reciprocal Agreement, the Partial Approval of
Reciprocal Agreement, and the Notice to Employee for Colorado
Unemployment Insurance Coverage are sent to you and your
employee as notification of the approval or partial approval of
your request that wages earned by an employee who works in more
than one state (including Colorado) be reported to Colorado. You
and the employee are subject to CESA for UI reporting and
coverage purposes. You may be granted full approval from all
states involved, partial approval from some of the states
involved (while denied by others), or a complete denial of the
request for the reciprocal agreement. Form UITL-2, Employer Change Request The Employer Change Request must be completed and submitted to
UI Operations if you cease operation in Colorado or sell your
business. You must submit this form within 10 days of cessation
or sale of the business to inactivate your account. A
partnership that incorporates is classified as a change in
ownership even if the owners are the same. This provision also
applies to a sole proprietorship that becomes a partnership or a
corporation that becomes a sole proprietorship. The Employer
Change Request is also used to submit address-change information
to UI Operations. Form RC-1, Employer’s Election to Cover Multi-State Workers
Under the Colorado Employment Security Act (Employer’s Election
to Cover Multi-State Workers) The Employer’s Election to Cover Multi-State Workers is used to
request that wages earned by employees who work in more than one
state (including Colorado) be reported to Colorado and subject
to CESA for UI reporting and coverage purposes. You must
complete and submit the Employer’s Election to Cover Multi-State
Workers to UI Operations for processing. UI Operations submits
the form to the other involved states for their approval. Form UITL-5, Request for Seasonal Determination The Request for Seasonal Determination is completed and
submitted to request that you be granted seasonal status for
your entire business or for specific occupations within your
business. The Request for Seasonal Determination asks specific
questions to determine if your business meets the
seasonal-status requirements defined in CESA. STATE UNEMPLOYMENT TAX ACT DUMPING Colorado’s UI Program has become increasingly aware of a
tax-avoidance method, known as SUTA dumping, used by some
Colorado employers to reduce their UI tax rate. The UI Program
is also aware that certain tax-advisory companies are promoting
tax-avoidance activities as a way of gaining business by
promising potential clients reduced expenses and increased
profits. The UI Program actively identifies and pursues employers engaged
in tax-avoidance activities and has the authority to subpoena
records and individuals in its investigations. Employers engaged
in tax-avoidance activities may be subject to criminal and/or
civil prosecution. SUTA dumping is a practice of some employers to create new
business entities and transfer employees and, in some cases, a
part of the organization, trade, or business to deliberately
avoid an increase in their UI tax rate caused by UI benefit
payments attributable to an existing company. The practice of
avoiding the proper payment of UI taxes places an undue burden
on those employers who pay UI taxes in a lawful manner. The UI Program has in place a tax-analysis program to detect
signs and patterns of fraud in UI tax-account activity. The UI
Program’s tax-fraud detection efforts target both active and
inactive UI tax accounts. Employers can help protect the integrity of the UI Trust Fund
and minimize the negative impact that SUTA dumping has on UI tax
rates by informing the UI Program of such activity. Information
may be reported to the Director of UI Integrity at 303-318-9036.
The source of the information is kept confidential. Colorado's UI Program participates in a federal data-matching
program whereby information provided by private employers and
government agencies is made available through the National
Directory of New Hires (NDNH). UI programs nationwide have
implemented this data-matching program. The purpose of the NDNH
data-matching program is to stop or limit the overpayment of UI
benefits to claimants who fail to report new employment, to
improve fraud-detection efforts, and ultimately to protect the
UI Trust Fund. The data-matching program is dependent on assistance from you to
verify information. The UI Program is placing emphasis on this
program by requesting that you verify new-hire start dates to
ensure UI benefits are discontinued for claimants who are
employed. Form UIB-144, Request to Employer for Earnings Data,
may be mailed to you for verification of a new-hire date and
earnings. Information on how to report the hiring of a new employee may be
obtained by contacting the Colorado State Directory of New
Hires, Employer Outreach Customer Service Department at 303-297-2849. WHAT ARE THE OBLIGATIONS FOR FEDERAL UNEMPLOYMENT TAX? Under federal law, you are required to file Form 940, Employer’s
Annual Federal Unemployment (FUTA) Tax Return. The form is submitted with the required payment to the District
Director of the United States Internal Revenue Services by
January 31 of each year. WHAT IS YOUR ROLE IN THE PAYMENT OF UNEMPLOYMENT INSURANCE
BENEFITS? When a former worker files a claim for UI benefits, the UI claim
sets in motion a chain of events in which you play an important
role. The information the claimant provides to UI Operations
must be verified. It is important that you receive and respond
to UI claim correspondence in a timely manner. A late response
to correspondence may jeopardize your status as an interested
party to the claim. This is why you must notify UI Operations
promptly of any address change. (For more information, please
refer to “How Is An Address Changed?” .) HOW IS A DECISION MADE ON WHETHER TO PAY UNEMPLOYMENT INSURANCE
BENEFITS? CESA requires that the UI Program be guided by the following
principles: You and the claimant provide information on the reason for the
job separation and how the job separation occurred. Claimants
usually provide the information at the time of filing their
claim for UI benefits. You are requested to complete the
information on the Request for Job-Separation Information. Timely Return of Form UIB-290, Request for Job-Separation
Information The U.S. Department of Labor establishes requirements to guide
state UI programs. As part of those requirements, the Colorado
UI Program must notify an employer that a UI claim has been
filed and provide two separate notices that job-separation
information must be submitted to the UI Program in a timely
manner. To meet these requirements, each employer involved in a
UI claim receives: -or- The Notice of Unemployment Insurance Claim, Reported Wages, and
Potential Charges or the Notice of Unemployment Insurance Claim
Filed notifies you that a UI claim has been filed and that
job-separation information must be provided to the UI Program on
the Request for Job-Separation Information, which is mailed
separately. The Request for Job-Separation Information notifies
you that job-separation information must be provided and is the
form on which you must provide the job-separation information.
Failure to provide the information on the Request for
Job-Separation Information in a timely manner results in the
loss of your status as an interested party to the UI claim. If the form is filed timely, UI Operations reviews both the
claimant’s and your responses. If further fact-finding is
needed, either party may be contacted by telephone or in
writing. If your response is not received within 12 calendar days after
the mailing date on the form, UI Operations cannot review your
response and a separation decision is issued solely on the
information presented by the claimant. Furthermore, your right
to participate in hearings regarding the job separation is
forfeited. If you return the Request for Job-Separation Information late,
you are sent a Notice of Decision advising you that you lost
your right to appeal the decision related to the claimant’s job
separation. You may appeal this decision, and your written
appeal must show good cause as to why your response to the
Request for Job-Separation Information was not timely. A hearing
is scheduled before a hearing officer and a decision is issued
as to whether your reasons for filing late meet the criteria for
good cause. (For more information, please refer to “What if You
Disagree With a Decision?” .) Decisions regarding other pay are also issued. State All Reasons for Separation Clearly UI Operations must have adequate information to make a
determination of a claimant’s UI benefit entitlement under CESA.
As an interested party to the claim for UI benefits, you must
state the reason for the job separation in detail to ensure that
benefit entitlement is properly determined. Anytime the separation was for a reason other than lack of work,
it is important to focus on the actual reason for the separation
and give the details that led to the final incident surrounding
the separation. The statement must contain all important facts
including: UI Operations determines benefit entitlement under the terms and
conditions of CESA, and a Notice of Decision is mailed to you
and the claimant. WHAT EARNINGS ARE CONSIDERED WAGES FOR AN UNEMPLOYMENT INSURANCE
CLAIM? To satisfy the earnings requirement, a claim may be filed
against wages earned in the following kinds of employment: HOW ARE UNEMPLOYMENT INSURANCE BENEFITS CALCULATED? In order to be monetarily eligible for UI benefits, an
unemployed person must have been paid base-period wages in an
amount not less than 40 times the weekly benefit amount or
$2,500, whichever amount is greater. The base period is the
12-month period consisting of the first four of the last five
completed calendar quarters preceding the quarter in which the
claim is filed. Wages earned in this period are used to compute
the amount of UI benefits. Maximum Benefit Amount The MBA on a UI claim is the total amount of UI benefits a
claimant may receive. It can be as much as 26 times the WBA,
depending upon the claimant’s wages during the base period.
However, your employer account is never charged in excess of
one-third of the base-period wages reported to UI Operations. The MBA allowed in Colorado is based upon the average weekly
wage in Colorado and is adjusted every 12 months. Weekly Benefit Amount Colorado uses one of two formulas in determining the WBA: -or- The formula giving the claimant the higher WBA not exceeding the
MBA is used. When Wages Paid Are Less Than $1,000 From a Taxable Employer If you are a taxable base-period employer, your account is not
charged when the total amount of base-period wages you paid to
an employee is less than $1,000. Reimbursable employer accounts are excluded from this $1000 wage
criteria and may be charged on any wage amount paid within the
base period. WHAT IS A COMBINED-WAGE CLAIM? A claimant may have worked in Colorado as well as in other
states. If the claimant lives in Colorado, wages from other
states may be transferred to Colorado and combined. If Colorado
is the paying state, Colorado administers and pays the claim
under CESA. If the claimant lives in another state, Colorado wages may be
transferred to that state to be combined in a claim. If another
state is the paying state, the claim is administered by the
other state under the UI laws of that state. A claimant may have worked in Colorado and moved to another
state. The claimant files a claim against wages earned in
Colorado. Such a claim is an interstate claim and is paid under
CESA. The claimant must meet the entitlement and eligibility
requirements defined in CESA. HOW DOES OTHER REMUNERATION AFFECT UNEMPLOYMENT INSURANCE
BENEFITS? A claimant’s UI benefits may be reduced and/or postponed if you
make certain types of payments after separation. Severance allowance causes the payment of UI benefits to be
postponed and causes a reduction of UI benefits if the paying
employer paid wages in the base period of the claim. Severance
allowance is a payment an individual receives as compensation
for weeks not worked after separation. Severance allowance does
not include payment specifically designated by you as a
separation bonus. Wages in lieu of notice, vacation pay, and separation bonus may
cause payment of UI benefits to be postponed from the date the
remuneration was received. Holiday pay, lump-sum payments,
disability, and other cash payments may also cause the payment
of UI benefits to be postponed. Receipt of a pension, annuity, or other retirement pay to which
you contributed may cause the claimant to receive a reduced WBA. All types of payments made to the claimant must be noted on the
Request for Job-Separation Information, which you must return
timely in order to preserve your status as an interested party. WHAT ARE THE DECISIONS THAT A CLAIMANT MAY RECEIVE? Full Award A claimant is entitled to a full award if the claimant is
unemployed through no fault of his or her own, has been laid off
due to lack of work, or has left a job for any of the following
reasons, which are outlined in CESA 8-73-108 (4). A full award
can be granted on the basis of: Disqualifications A claimant may receive a postponement of 10 weeks and a
reduction of benefits based on wages paid by you if he or she is
found responsible for the separation. You are relieved of all or
part of the liability for UI benefits payable if the claimant
quit or was discharged for any of the following reasons, which
are outlined in CESA 8-73-108 (5)(e). Disqualification of
benefits can result from the claimant: The requirement to look for work and to register at an
employment office is waived if: While attached to a job or union, the claimant must be able to
work and be available for immediate recall to work. Job attachment is intended to benefit employers by ensuring that
you have a base of trained employees to return to your business
after a short layoff. SEASONAL EMPLOYMENT’S AFFECT ON UNEMPLOYMENT INSURANCE BENEFITS UI Operations may designate you as a seasonal employer if your
business operates only during certain seasons (for example, a
ski resort or a tax-preparation business). Unemployed workers
who work only during those seasons can be paid UI benefits based
on their seasonal wages but only during the season in which the
workers are normally employed. Unemployed workers who worked
outside the designated season can collect UI benefits anytime
during the claim year. If a claimant is paid a combination of seasonal and nonseasonal
wages, all wages are treated as nonseasonal and payment of
benefits may occur at any time during the claim year. (For more
information, please refer to “Qualifying for Seasonal Status”.) WHAT IF YOU HAVE A JOB FOR THE CLAIMANT? If you have work for a claimant, you must contact him or her
directly. If the claimant refuses a job offer from you or you
are unable to contact the claimant, you must notify the UI
Program by calling 303-318-9055 or by writing to UI Operations,
P.O. Box 400, Denver, CO 80201-0400. The information must
include the specifics of the job offer and the claimant’s SSN. WHAT IF A CLAIMANT REFUSES WORK? CESA states that a claimant’s UI benefits may be postponed and
reduced if the claimant refuses to accept a suitable job offer. Work is not considered suitable if: UI benefits are not denied an individual more than once for
failing to apply for or accept the same or similar position with
you. WHAT ARE THE REQUIREMENTS FOR A CLAIMANT TO RECEIVE UNEMPLOYMENT
INSURANCE BENEFITS? In addition to meeting the earnings requirements, a claimant
must meet certain other requirements. The claimant must: The claimant must meet all the eligibility requirements in order
to receive benefits for each week filed. A worker may or may not
be eligible if he or she: HOW DOES REGULAR PART-TIME EMPLOYMENT AFFECT UNEMPLOYMENT
INSURANCE BENEFITS? Regular part-time (RPT) employment refers to continuing
part-time employment from a base-period employer. There must be
wages from at least one other covered employer within the base
period. These additional wages can be from a full-time or a
different part-time employer. If, as a taxable employer, you employ an RPT worker, you are not
charged for UI benefits if the worker continues to work
part-time while claiming UI benefits based on wages paid by
another employer. A reimbursable employer may be charged in this
situation if the claim is based in part on federal, military, or
other state wages. CAN A WORKER RECEIVE UNEMPLOYMENT INSURANCE BENEFITS AND WORK
PART-TIME? An individual may work and earn up to 25 percent (0.25) of his
or her WBA without affecting the amount of weekly unemployment
benefits. Anything earned above the 25 percent (0.25) is
deducted dollar-for-dollar from the claimant’s WBA. This amount
is rounded to the lower whole-dollar amount. An individual working 32 or more hours during any week or
earning as much as or more than the WBA is not eligible for UI
benefits during that week. NOTIFYING WORKERS ABOUT UNEMPLOYMENT INSURANCE BENEFITS If you are liable to pay UI taxes, you are required to display
Publication 502, Notice to Workers, where all employees can see
it. UI Operations mails this publication to you. Additional
posters can be downloaded at
www.coworkforce.com; click on
UI Business Forms in the left column. Additional posters can
also be obtained by calling or e-mailing the Customer Contact
Center. WHEN PROCESSING AN UNEMPLOYMENT INSURANCE CLAIM, HOW IS THE
INFORMATION YOU PROVIDE USED? Following are descriptions of common UI forms and how the UI
Program uses the information that you provide on these forms to
process a former employee’s claim for UI benefits: UITR-1, Unemployment Insurance Tax Report, and UITR-1a,
Unemployment Insurance Report of Workers Wages The information you provide on the Unemployment Insurance Tax
Report and the Unemployment Insurance Report of Workers Wages is
used to establish a wage history for an employee. If a former
employee applies for benefits, the wage history is used to
establish monetary eligibility for the claimant. UIF-290, Notice of Unemployment Insurance Claim, Wages Reported,
and Potential Charges You are sent the Notice of Unemployment Insurance Claim, Wages
Reported, and Potential Charges to inform you that a former
employee has filed a claim for benefits. Based upon information
you submitted on the Unemployment Insurance Tax Report and the
Unemployment Insurance Report of Workers Wages, wages paid by
you are listed, and a potential charge to your account is
determined. You must verify that the wages listed are accurate.
You must complete and submit the reverse side of the Notice of
Unemployment Insurance Claim, Wages Reported, and Potential
Charges if changes are necessary. UIB-634, Notice of Unemployment Insurance Claim Filed If you are not chargeable on a claim, you are sent the Notice of
Unemployment Insurance Claim Filed to notify you that a former
employee has filed a claim for UI benefits. If you receive a
Notice of Unemployment Insurance Claim, Reported Wages, and
Potential Charges, you do not receive the Notice of Unemployment
Insurance Claim Filed. The form reminds you to complete the
Request for Job-Separation Information. Keep in mind that, even
though you are not chargeable on this claim, you may be
chargeable on a future claim. Completing the Request for
Job-Separation Information helps preserve your rights on this
and future claims. UIB-290, Request for Job-Separation Information The claimant’s most recent employer and all potentially
chargeable base-period employers receive the Request for
Job-Separation Information. The form provides you with an
opportunity to explain the reason for the job separation. The
form also provides space to report other payments (such as
vacation or severance payments) made to a worker upon separation
from employment. Such payments may affect your potential
charges. This document must be received within 12 calendar days after the
mailing date on the notice for the information you provide to be
considered in making the decision. If you do not return the
Request for Job-Separation Information timely, you lose your
right to appeal the payment of UI benefits based on the wages
you paid the claimant. UIB-6, Notice of Decision Decisions regarding the claimant’s receipt of benefits are sent
to you on the Notice of Decision. You must review this decision
carefully. Both you and the claimant have the right to appeal
this decision. If either party believes that the decision is
incorrect, an appeal must be filed with UI Appeals. UI Appeals
must receive your appeal within 20 calendar days after the
mailing date on the notice. The appeal must be in writing.
Specify the reasons for disagreement and include a copy of the
Notice of Decision you are appealing. If you fail to appeal the
decision on time, you lose your appeal rights for the decision. UIB-144, Request to Employer for Earnings Data Benefit Payment Control (BPC) sends the Request to Employer for
Earnings Data to obtain a daily record of earnings for your
former and/or current employees. BPC audits claims for UI
benefits by comparing benefit payments with wages reported by
you on the Unemployment Insurance Tax Report and the
Unemployment Insurance Report of Workers Wages. Benefits paid to
ineligible individuals, if not detected, result in unwarranted
charges to your account and may unfavorably affect your tax
rate. Your cooperation in providing accurate and complete
information is appreciated. UIA-20, Statement of Benefit Charges Each quarter, the Statement of Benefit Charges listing the total
amount of benefits charged and/or credited to your account
during the prior quarter is sent to you. These charges and/or
credits are the basis for computing your future tax rate. The
Statement of Benefit Charges lists former employees who received
benefits, the total amount of charges and/or credits to your
account for each claimant, and the total charges and/or credits
for the quarter. An entry on this statement could be based on
wages paid as long ago as 36 months. A credit to your account is the result of a reversal of a
determination regarding the payment of UI benefits or a wage
correction that affects benefit payments. The Statement of Benefit Charges must be carefully reviewed. If
you have any questions regarding any charges on the form, you
must submit a request for redetermination to UI Operations
outlining your disagreement with the benefit payments. If a
request for redetermination is not made within 60 days, the
charges as shown on the Statement of Benefit Charges are
considered correct. You cannot appeal separation reasons based
on this form. If an account has had no activity in the prior
fiscal quarter, the Statement of Benefit Charges is not mailed. The UI Program conducts a vigorous fraud-prevention program. You
can help prevent fraud by reporting any claimant who is
receiving benefits for which you suspect he or she is not
eligible. WHAT IF YOU PROVIDE FALSE INFORMATION OR DO NOT PROVIDE
REQUESTED INFORMATION? Reports to the UI Program concerning wages, reasons for
separation, and dates of employment must be timely, accurate,
and complete. There are severe penalties if you provide false
information or fail to disclose required information. If you deliberately submit false information that causes a delay
in the payment of UI benefits, the claimant may receive one and
one half times the benefit to which he or she was otherwise
entitled. These extra benefits are additional charges to your
account as a result of your giving false information. Phishing is “an attempt to fraudulently acquire sensitive
information, such as usernames, passwords, personal
identification numbers, SSNs, employment information, names,
addresses, and account details, by masquerading as a trustworthy
entity in an electronic communication.” Phishing is typically
carried out using e-mail or an instant message, and often
directs users to a Web site. Never click on links in suspicious
electronic communications. Please contact UI Integrity at
303-318-9035 if you suspect any phishing. UNEMPLOYMENT INSURANCE APPEALS WHAT IF YOU DISAGREE WITH A DECISION? If you disagree with a decision or notice issued by the UI
Program, you have the right to appeal the decision or notice and
obtain a hearing before a hearing officer. To appeal a decision
or notice, you must submit a written statement that includes the
specific reasons for appealing the decision or notice. UI
Appeals must receive your written appeal within 20 calendar days
after the mailing date shown on the decision or notice. If the
20th day falls on a Saturday, Sunday, or legal holiday, the
appeal period is extended to the first working day following the
Saturday, Sunday, or legal holiday. If your appeal is received
after the 20-day time limit, it is considered late and, unless
you provide good cause as to why the appeal was not filed on
time, it is dismissed. Good cause generally means that you were
prevented from filing a timely appeal due to circumstances that
were beyond your control and the circumstances could not have
been reasonably anticipated. Most decisions and notices issued by the UI Program provide
instructions and space to appeal the decision or notice. If
appeal instructions and space are not provided on the decision
or notice, you may submit an appeal on a sheet of paper along
with a copy of the decision or notice being appealed and
reference to the business name as well as claimant name and SSN.
Mail your appeal to UI Appeals, P.O. Box 8988, Denver, CO
80201-8988 or fax your appeal to 303-318-9248. Publication AS-52, The Appeals Process, contains detailed
information about the entire appeals process. To view The
Appeals Process online, go to
www.coworkforce.com/UIT and click
on The Appeals Process in the left column. To request hardcopies
of The Appeals Process, e-mail or call the Customer Contact
Center. WHAT HAPPENS IF YOU DISAGREE WITH THE HEARING-OFFICER’S
DECISION? If you disagree with the decision rendered by the hearing
officer and want to appeal the decision to the next level, the
Colorado Industrial Claim Appeals Office (ICAO) must receive a
written appeal within 20 calendar days after the mailing date on
the decision. This office reviews only evidence introduced at
the hearing and written arguments. CESA 8-74-104 (2) stipulates
that ICAO may consider no additional evidence. After an appeal is filed, all interested parties receive a
document entitled, “Notice of Appeal to Industrial Claim Appeals
Office of Colorado.” A copy of the transcript of testimony taken
before the hearing officer and a notice of deadline for filing a
written argument are also provided. When you are preparing a written argument, the name and
identifying number of the case and, if the appeal is related to
a claim for UI benefits, the claimant’s name and SSN must be
included. The argument must be based on testimony and made from
evidence that appears in the transcript. ICAO does not schedule
a hearing. It renders a decision based on its review of the
transcript and the written arguments. ICAO reviews the evidence taken at the hearing before the
hearing officer and issues a decision that can affirm, modify,
or reverse the hearing officer’s findings. COLORADO COURT OF APPEALS APPEALING THE INDUSTRIAL CLAIM APPEALS OFFICE’S DECISION If you are not satisfied with the outcome of your appeal to
ICAO, you may petition, within 20 days of the final order issued
by ICAO, the Colorado Court of Appeals. The Colorado Court of
Appeals cannot change any findings of fact; it also cannot
consider any facts or documents that are not part of the record. The ICAO decision may be set aside only on the following
grounds: In most cases, the ruling of the Colorado Court of Appeals is
final. Rule 49 of the Colorado Appellate Rules lists the reasons
the Colorado Supreme Court uses to decide if it will consider a
case. Rule 51 and subsequent rules list how to seek Colorado
Supreme Court review. WHAT IS BENEFIT PAYMENT CONTROL’S FUNCTION? The responsibility of the BPC unit is to prevent, detect, and
recover overpayments of UI benefits. Occasionally, claimants
receive UI benefits to which they are not entitled. If an
overpayment of UI benefits is discovered, the claimant is
responsible for repaying the full amount of the overpayment,
including any taxes that were withheld. Overpayments occur for a variety of reasons, such as: If a claimant is overpaid UI benefits, BPC notifies the claimant
of his or her rights and responsibilities concerning the
overpayment. Some or all future UI benefits may be withheld to
repay overpayments. Claimants who do not make or keep repayment
agreements may have additional fees assessed and may be reported
to a credit bureau. WHAT IS YOUR ROLE IN OVERPAYMENT MATTERS? As a part of its effort to detect claimants who have been
overpaid UI benefits, BPC may send you one or more of the
following forms to complete. Your cooperation in completing and
returning these forms is helpful in detecting improper payments
to claimants and incorrect charges to employer accounts. Please contact BPC at 303-318-9035 if you suspect a worker is
being paid UI benefits to which he or she is not entitled. WHAT IS THE BENEFIT ACCURACY MEASUREMENT PROGRAM? The Benefit Accuracy Measurement (BAM) unit exists to prevent
and detect both error and fraud in the administration of the UI
Program. BAM reviews a sample group of UI claim records that are
randomly selected each week to test the accuracy of decisions to
issue or deny UI benefit payments. WHAT DOES A BENEFIT ACCURACY MEASUREMENT REVIEW INCLUDE? When BAM conducts a review of a claim, the following information
is considered: NOTE: If you do not respond to BAM’s request to examine your
records, a subpoena that requires you to produce the records may
be issued. BAM staff is comprised of qualified personnel who are carefully
screened before they are selected to review claims. Each staff
member receives intensive training after being selected to
review claims. Each staff member is knowledgeable about Colorado
UI laws and policies. All project investigators have
identification and are glad to present it upon request. You and all of the claimant’s former employers are contacted to
verify payroll records and the reason that the claimant is
unemployed. Work-search contacts specified by the claimant are verified by
contacting you and/or other employers. HOW ARE CASES SELECTED FOR REVIEW? Each week a sample of claims records are chosen at random by a
computer. The selections are made from the lists of claimants
who recently: A claim may be reviewed more than once. The number of times is
not predictable since new cases are randomly selected each week. Selection of claims for review is a random process. Claims are
not selected for review because of suspicions of wrongdoing. As an employer, you can help by: HOW CAN YOU CONTACT THE BENEFIT ACCURACY MEASUREMENT PROGRAM? If you have any questions regarding the BAM unit or information
that can be offered, call 303-318-9000, Ext. 83221. All BAM
correspondence sent to you includes an investigator’s name and
telephone number. WHAT IS THE WORKFORCE DEVELOPMENT PROGRAM? Colorado’s Workforce Development Program consists of a statewide
network of workforce centers (WFCs) that offer comprehensive
employment and training services to job seekers and employers.
WFCs provide job placement, career counseling, and training
services to job seekers as well as recruitment and prescreening
services to you. These centers are guided by local business
representatives and operate in partnership with the UI Program,
and with economic development, educational, and social-services
agencies. The major objectives of the Workforce Development Program are
to: You can list your job openings with Colorado’s WFCs and take
advantage of additional customized services offered free of
charge by their representatives. Information on how to contact
your local WFC is available at
www.coworkforce.com; click
on Post a Job Opening in the left column. You may also list your job openings online at
http://coloradojobs.cdle.org.
Job openings entered on this Web site are made available to WFCs
statewide and are posted on the Internet for maximum exposure to
qualified job seekers. WHAT IS LABOR MARKET INFORMATION? The Labor Market Information (LMI) unit is your resource for the
most accurate data available on the Colorado economy. LMI
provides projections on job and industry growth, the size of the
labor force for your industry, regional job-vacancy surveys, and
specific information about wages and occupations in Colorado.
Much of the information relates to the entire state, as well as
regions, counties, and metropolitan areas within the state. Colorado is part of an exciting and innovative new program
called Local Employment Dynamics (LED), where information
provided by the UI Program is combined with demographic analyses
to give you more detailed information with which to make
important business decisions. LED provides access to data that
impacts all industries, including: The data is available at the state, county, and workforce-region
level. Because LED is a national program, you can compare your
industry and region with industries elsewhere in the county.
This resource is a valuable tool for recruitment and wage
setting. HOW DOES COLORADO USE DATA FROM LABOR MARKET INFORMATION? Economic developers and planners use data collected from
Colorado employers to attract new business to the state.
Career-planning counselors use occupational projections and
job-vacancy surveys to develop educational curriculum for the
Colorado labor force. You can use labor market information to
help set competitive wages and benefits for your employees.
Businesses track hiring trends in their industry for specific
occupations to keep up with their competition. Knowing which
industries are shrinking and which are growing is useful to
investors and business planners. Government leaders use data to
make key decisions on budgets and economic development plans. DO YOU NEED TO COMPLETE THE BLS-3020 REPORT? If you operate more than one establishment under one
unemployment identification number, you are required to supply
quarterly employment and wage data for each location on Form
BLS-3020, Supplement to Unemployment Insurance Tax Report. This
form is automatically mailed by LMI to you if you have more than
one Colorado location. If you have more than one Colorado
location and never completed a Supplement to Unemployment
Insurance Tax Report, you must call LMI at 303 318 8852. This
data enables LMI to prepare accurate reports on the economic
conditions of business activities by geographic areas and
industries within Colorado. MUST YOU PROVIDE WORKERS’ COMPENSATION FOR YOUR EMPLOYEES? Colorado state law mandates that you provide workers’
compensation coverage for your employees. This insurance
provides prompt, partial wage replacement and covers medical
expenses for workers injured on the job. You pay the full cost of this insurance. It is unlawful to
deduct the cost of this coverage from an employee’s wages. No
other insurance is allowed to substitute for workers’
compensation coverage. Failure to provide this type of coverage
for your employees may result in substantial penalties and an
order to cease business operations. To obtain workers’ compensation coverage, contact your insurance
agent. For more information regarding workers’ compensation,
contact the CDLE, Division of Workers’ Compensation at 303-318-8700 (Customer Service Unit) or 303-318-8790 (Communications
Unit). Appeal. An appeal is a written request for a hearing when an
interested party believes a decision is not legally correct or
was based on incorrect or incomplete facts. The appeal must be
in writing, specify the errors or omissions, and be filed within
the time limits prescribed. Base period. The base period is the 12-month period consisting
of the first four of the last five completed calendar quarters
preceding the quarter in which the claim is filed. Wages earned
in this period are used to compute the amount of UI benefits. Benefit year. The benefit year consists of 52 (or 53 in some
rare cases) consecutive calendar weeks beginning with the week
in which a worker files a valid claim for UI benefits and during
which the claimant may draw the benefits. Calendar year. The calendar year consists of 52 (or 53 in some
rare cases) consecutive calendar weeks beginning in January and
ending in December. Chargeable for benefits. Your account may be charged for
benefits when a former employee files a claim for UI benefits.
Wages you reported for that individual during the base period
are used to determine the amount your account is charged. Claim. A claim is an application filed for UI benefits. Claimant. A claimant is an unemployed worker who files a claim
for UI benefits. 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 your employer tax
account, and wage reporting. Computation date. The computation date is the date (June 30 of
each year) on which your tax rate is calculated for the
following calendar year. Covered employment. Covered employment is services performed for
an employer covered by the Colorado Employment Security Act. Determination. A determination is a decision that a claimant is
or is not eligible to receive UI benefits or that an employer is
subject to the Colorado Employment Security Act. Division. The Division of Employment and Training is a division
of the Colorado Department of Labor and Employment. Employing unit. An employing unit is any individual or
organization that has one or more employees in the state of
Colorado. A corporation is, by definition, an employing unit
because it has officers performing services. Employment. Employment is services that are performed by an
individual for another and are defined as covered employment by
the Colorado Employment Security Act (see definitions for
Covered Employment and Determination). Excess wages. Excess wages are the total wages paid in excess of
$10,000 per employee per calendar year. Exempt employment. Exempt employment is employment that is
specifically excluded from the Colorado Employment Security Act. Experience rating. Experience rating is a tax-rating process
that occurs when you have filed tax and wage reports for all
four quarters in the calendar year prior to the June 30
computation date for UI tax rates. You then receive a computed
rate that is calculated using the account history on your
account, including taxes paid and benefits charged. Federal Employer Identification Number (FEIN). The FEIN is a
number assigned to you by the Internal Revenue Service (IRS). It
must be shown in the space provided on Form CR 0100, Colorado
Business Registration. The FEIN is used to cross-reference your
Colorado unemployment tax account with the IRS. Fund. The fund is the Colorado Unemployment Insurance Trust
Fund. It consists of all the taxes that have been paid by all
Colorado employers, less all benefit claims that have been paid,
plus any interest earned on the balance through the years. Good cause. Good cause consists of factors that prevent a
responsible and conscientious individual from performing a
required action to comply in a timely and/or correct manner.
Good cause provisions are set forth in Regulations Concerning
Employment Security Part XII. Gross taxable wages. Gross taxable wages are the total Colorado
wages paid this quarter (subject to the State Unemployment Tax
Act [SUTA] tax) (before deductions), whether paid in cash or
other type of remuneration. Gross wages. Gross wages are all wages. Monthly employment. Monthly employment represents the number of
workers who are covered under the Colorado Employment Security
Act and who earned wages during the pay period that includes the
12th of the month. North American Industry Classification System (NAICS). NAICS
assigns a code to each reportable work site based on primary
products produced or primary services delivered in accordance
with the NAICS manual. The objective in industry classification
is to have each work site coded on the basis of its principal
activity for the purpose of determining the UI tax rate for an
industrial business. If a firm conducts different activities at
its various establishments, separate industry codes are assigned
to the extent possible to reflect the primary activity at each
site. NAICS replaces the former Standard Industrial
Classification (SIC) system. Political subdivision. A political subdivision is a county,
municipality, school district, local junior college district, or
special district of the state. Political subdivisions have the
option of paying taxes at the political subgroup rate or direct
reimbursement without posting a bond. Taxes are paid on the
total Colorado gross taxable wages paid this quarter. Political
subdivisions are not allowed to take excess wages because the
assigned group rate is an average rate based on taxes paid,
benefits charged, and the average annual taxable payroll for all
employers in this classification. Rate code: A rate code is a tax rate assigned to you depending
on the status of your business. A description of various rate
codes follows. Rate code 1, computed: The computed rate is based on the
employer’s record of taxes paid, benefits charged, and the
average annual taxable payroll. It is available only to
employers who have met the 12-month or 36-month requirement of
benefits chargeability. Rate code 2, reimbursable: The reimbursable rate is based on the
employer’s status as a political subdivision or nonprofit
organization. It allows the employer to reimburse the
Unemployment Insurance Tax Fund for any benefits paid to former
employees. Rate code 3, political subdivision: The political subdivision
rate is a group rate that is assigned to all political
subdivisions that do not choose to be reimbursable employers.
The rate is an average rate based on the taxes paid, benefits
charged, and average annual taxable payroll for all employers
who are classified as a political subdivision. Rate code 4, unrated standard: The unrated standard rate is
defined by law as 1.7 percent (0.0170), for employers newly
subject to pay unemployment insurance taxes as of July 1, 1997.
This rate is assigned to new employers who have not met the
12-month requirement of benefits chargeability. Rate code 5, unrated industry: The unrated industry rate is
assigned to new employers in the construction industry who have
not met the 36-month requirement of benefits chargeability. The
unrated industry rate is an average industry rate based on the
taxes paid, benefits charged, and the average annual taxable
payroll for all employers within the construction industry as
identified by the North American Industry Classification System
(NAICS). Rate code 6, unrated computed: The unrated computed rate is
based on the employer’s record of taxes paid, benefits charged,
and the average annual taxable payroll. The unrated computed
rate can be assigned to new employers who have not met the
12-month or 36-month requirement of benefits chargeability or
employers who have lost benefits chargeability. Employers lose
benefits chargeability after no wages have been paid for more
than nine quarters. If the base rate can be calculated and the
calculated base rate is higher than the standard base rate, then
the highest rate computed is assigned. Rate code 7, unrated freeze: The unrated freeze rate is based on
the employer’s account being reinstated. An employer who has
lost benefits chargeability during the time he or she was
inactive is not eligible for a computed rate until he or she
again meets the 12-month or 36-month requirement of benefits
chargeability. Reimbursable employer. Reimbursable employers are certain
eligible employers, qualifying political subdivisions, or
nonprofit organizations who may choose to reimburse the Colorado
Unemployment Insurance Trust Fund for any benefit claims paid to
former employees. Segregable unit. A segregable unit is a unit of a business which
has operated as a separate entity for 12 calendar quarters
immediately preceding the computation date (June 30) and has
kept continuous, separate records of workers’ wages, taxes paid,
and benefits charged. State Unemployment Tax Act (SUTA) Dumping. SUTA dumping is a
practice by employers to create new business entities for the
purpose of transferring employees and, in some cases, a part of
the organization, trade, or business to deliberately avoid an
increase in their UI tax rate caused by UI benefit payments
attributable to an existing company. Tips. Tips are small amounts of money (gratuity) that are given
as an acknowledgement for services rendered. Tips that are
reported to you in writing by an employee are considered wages. Total taxable wages. Total taxable wages are the total gross
taxable wages minus the total excess wages. Transfer of experience. A transfer of experience is the
proportional share of the experience-rating record of the
predecessor, including the actual taxes, benefits, and payroll
experience that is transferred to you as the successor. Unemployment insurance tax account number. The unemployment
identification number is a unique employer identification number
assigned to you by UI Operations. Workforce centers (WFCs). Colorado’s statewide network of WFCs
provide job placement, career counseling, and training services
to job seekers as well as recruitment and prescreening services
for you. Work site. A work site is an economic unit, such as a farm,
factory, store, or mine, that produces goods or provides
services. It is usually at a single physical location and is
engaged in one or predominantly one type of economic activity.
If you operate at two or more locations, you are required to
identify separately the employment and payrolls of each location
on the Form BLS-3020, Supplement to Unemployment Insurance Tax
Report. The information reported on the Supplement to
Unemployment Insurance Tax Report allows Labor Market
Information to collect accurate employer data categorized by
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