|
|
|
|
SOLVENCY TAX SURCHARGE
In accordance with the Colorado Employment Security Act
(CESA)
8-76-102 (5)(a), a solvency tax surcharge (STS) was assigned to all ratable
employer accounts beginning in calendar year 2004. Ratable employers contribute
taxes according to an established rate rather than reimburse the Unemployment
Insurance (UI) Program dollar for dollar based upon the benefits charged against
the account. Most employer accounts are ratable.
The purpose of the STS is to maintain a sufficient monetary level in the UI
Trust Fund, which ensures the UI Program’s ability to pay UI benefits as
established in CESA. A short-term increase in the tax rate because of the
addition of the STS will result in an actual decrease in employers’ base tax
rates as the balance of the UI Trust Fund increases.
In 2008 the base tax rate was at the lowest base rate attainable. Because of an
increase in the monetary level of the UI Trust Fund, the 2009 chart for an
employer’s base rate will remain unchanged. For calendar year 2009 the base tax
rate will remain at the lowest base rates attainable. See
CESA 8-76-103 (3)(b)(II)(B),
column heading “450 Million Plus.”
Form UITR-7, Notice of Employer’s Tax Rate, mailed to employers in November
2008, provides the combined tax rate for calendar year 2009. The yearly STS
increment is included in the combined tax rate for calendar year 2009 for
ratable employer accounts.
The following Web pages provide additional information about the STS:
If you have any questions or comments about the STS, Contact Us. |