Colorado Unemployment Insurance (SUTA/SUI)
In this article
- Who must pay Colorado unemployment insurance (UI) premiums?
- How is my Colorado UI premium calculated?
- When do I need to pay my UI premium?
- What is the UI chargeable wage limit in Colorado?
- What UI rate should I expect to pay as a new employer in Colorado?
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 unemployment insurance (UI) premiums and reporting. Some exceptions are made for for religious, 501(c)(3) organizations, agricultural, and household employers.
How is my Colorado UI premium calculated?
The Colorado Department of Labor & Unemployment calculates UI premiums annually by multiplying each employee's chargeable wages and the employer's combined UI rate. In 2019, the chargeable wage limit in Colorado is $13,100; all wages over that amount are considered excess wages.
For example, if your UI combined rate is 1.7%, you would pay no more than $222.70 per employee (0.017 UI rate x $13,100 in wages).
There are several factors that affect UI premiums. For help calculating your UI premium, download this spreadsheet from the Colorado Department of Labor & Employment.
When do I pay my UI premium?
Employers subject to the tax are required to report their wages and pay associated premiums quarterly. If you are an ASAP Accounting & Payroll client, please do not attempt to report your wages as this is a payroll return that ASAP files on your behalf. With each payroll, ASAP calculates your state UI expense for you and will initiate the filing on your behalf.
What is the UI chargeable wage limit in Colorado?
As of January 1 2019, the UI chargeable wage limit in Colorado is $13,100. The wage base limit increases annually as it is indexed to wage growth per Colorado House Bill 11-1288.
Colorado UI taxable wage base limits over the years:
- 2019: $13,100
- 2018: $12,600
- 2017: $12,500
- 2016: $12,200
- 2015: $11,800
- 2014: $11,700
- 2013: $11,300
- 2012: $11,000
- 2011 and prior: $10,000
What UI rate should I expect to pay as a new employer in Colorado?
Colorado New Employer UI Rates for 2019:
- Non-construction: 1.7%
- General Construction: 1.77%
- Heavy Construction: 7.43%
- Trades: 1.77%