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Unemployment Insurance Premiums Allocation Federal Law Compliance

Concerning unemployment compensation, and, in connection therewith, reducing employer premium rates; creating support surcharge rates; and adjusting the allocations of employer premiums and support surcharge payments to the unemployment compensation fund, the employment support fund, the employment and training technology fund, and the benefit recovery fund to comply with federal law.
2023 Regular Session
Labor & Employment
Bill Summary

Joint Budget Committee. For purposes of complying with requirements of the "Federal Unemployment Tax Act", the bill reduces employer premium rates by 10% across all rates in the standard premium rate schedule. Additionally, the bill creates a schedule for the support surcharge rate (schedule), which is used to establish contributions to the employment support fund, to the employment and training technology fund, and to the benefit recovery fund. The new schedule uses the same methodology as is used in calculating an employer's percent of excess, which is the percentage resulting from the calculation of an employer's excess of premiums paid over benefits charged, divided by the average chargeable payroll.

The bill changes the cap on the amount of money in the employment support fund at the end of any state fiscal year, from an amount calculated based on a portion of the employer premium plus $17 million, to a total of $32.5 million for the next state fiscal year, which amount is adjusted annually based on changes in average weekly earnings. Additionally, the bill repeals, effective June 30, 2025, the ability of the department of labor and employment (department) to use money in the employment support fund to provide funding for labor standards, labor relations, and Colorado works grievance procedures.

The bill expands the authorized use of money in the Title XII repayment fund to allow the division of unemployment insurance (division) in the department of labor and employment (department) to use the money for costs associated with bonds or notes issued by the division, including interest on the bonds or notes , to the extent permitted by federal law .

The bill eliminates the requirement for employers to submit premium reports to the division and instead requires employers to submit wage reports.

The bill adjusts the appropriations in the annual general appropriation act for the 2023-24 state fiscal year to the department for use by the division as follows:

  • Decreases the general fund appropriation for program costs related to labor standards by $899,537; and
  • Increases the cash funds appropriation from the employment support fund for program costs related to labor standards by $899,537.

(Note: Italicized words indicate new material added to the original summary; dashes through words indicate deletions from the original summary.)

(Note: This summary applies to the reengrossed version of this bill as introduced in the second house.)


Became Law


Bill Text

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