Colorado Unemployment Insurance Account

Meike Alberts, the Paychex, Inc. Payroll Consultant for Southern Colorado, passed on this important information about the Colorado Bond Interest assessment that Colorado employers are required to pay in 2012.

In order to reach solvency for the Colorado Unemployment Insurance Trust Fund and provide upfront relief to Colorado businesses, the state of Colorado has closed a bond transaction. The bond transaction allowed the state to repay loans previously borrowed from the federal government in 2010.

There are several items related to the bond transaction that will affect the majority of Colorado employers:

1.     In November 2012, Colorado employers will receive their 2013 Employer Rate Notices. Each employer will be responsible for a portion of bond repayment. The employers’ state unemployment insurance (SUI) rates will be adjusted based on the agency calculation.  Please look for this notice in your mailbox in November as it needs to be supplied to your payroll specialist so that we update your account with accurate rates for 2013. 

2.     Most employers will also be responsible to repay a portion of the interest from the bond transaction. Beginning September 2012, all Colorado employers with an experience rating less than +7 will be sent a Bond Interest Assessment. Similar to the Federal Assessment required in 2011, each employer will receive a separate assessment bill. The bill will be required to be paid within 30 days of receipt.

3.     The current solvency surcharge, established in 2004, will be removed for 2013.

4.     According to the state of Colorado, the bond transaction will save most employers between $20 and $120 per employee for 2013 and 2014. The state believes that the bonds will create the potential for future lower rates as the Unemployment Insurance Trust Fund reaches financial health more quickly.

You can read the letter here from the agency to provide additional detail about the bond assessment.

If you have any questions about how this affects you and your business, please call us at (719) 579-9090.