Colorado Unemployment Insurance (SUTA/SUI)
In this article
- Who Must Pay Colorado Unemployment Insurance Premiums?
- How Much Do I Pay?
- When Do I Pay This?
- Did the UI Wage Base Limit Change in 2017?
- What UI Rate Should I Expect to Pay as a New Employer?
Who Must Pay Colorado Unemployment Insurance Premiums
Employers that paid wages of at least $1,500 in a calendar quarter in the current or prior year or any business that employed at least one employee for 20 weeks during the current or prior year are subject to UI premiums and reporting. Some exceptions are made for for religious, 501c3 organizations, agricultural and household employers.
How Much Do I Pay?
Employers pay CO UI premiums on the first $12,600 wages they pay each employee times their combined UI Rate; all wages over that amount are considered excess wages.
---> Example: if your combined rate is .0211 or 2.11%, you would pay no more than $265.86 per employee (.0211 x $12,600 in wages).
When Do I Pay This?
Employers subject to the tax are required to report their wages & pay associated premiums quarterly. However, please do not attempt to report your wages as this is a payroll return that ASAP files on your behalf. With each payroll ASAP is calculating your State UI expense for you and will initiate the filing on your behalf.
Did the UI Wage Base Limits Change in 2018?
Yes, it is now $12,600. The wage base limits will continue to increase annually as it is now indexed to wage growth unless the State legislature & governor pass new legislation. For at least a decade the UI taxable wage base was unchanged at a $10,000 limit. However, Colorado House Bill 11-1288 signed on a Thursday before Memorial Day weekend 2011 changed many aspects of how the program is funded.
Colorado UI taxable wage base limits over the years:
$12,600 for 2018
$12,500 for 2017
$12,200 for 2016
$11,800 for 2015
$11,700 for 2014
$11,300 for 2013
$11,000 for 2012
$10,000 for 2011 and prior
What UI Rate Should I Expect to Pay as a New Employer?
Non-construction pending release%
General Construction pending release%
Heavy Construction pending release%
Trades pending release%
General Construction 4.31%
Heavy Construction 9.57%