![]() ![]() According to the 2021 Colorado unemployment insurance trust fund report (released August 31, 2021), prior to the beginning of the pandemic, the trust fund balance stood at just over $1.1 billion. It is taking the extra time necessary to ensure the overall accuracy of the process to negate and limit the impacts to employer accounts.Ĭolorado's UI trust fund became insolvent in August 2020 and the state began to borrow from the federal government to continue to pay UI benefits. It continues to review and monitor the charging on accounts and is taking necessary steps to make adjustments to any charging reversals that may have been missed through that automated process. To prevent these charges from contributing to employer experience rates for 2022, the CDLE ran a program to automatically remove these charges from employer accounts. Due to the overwhelming volume of work involved with sorting all these charges, this process has taken significantly longer than anticipated. For reimbursing employers (typically nonprofits and government agencies) benefit charges were reduced by a percentage in accordance with federal relief efforts. ![]() ( Executive Orders 2020-012, 2020-100, and 2021-118 UI benefit non-charging extended most recently by Executive Order 2021-122 on July 8, 2021.)Īccording to the CDLE, it has been working diligently to remove such charging from employer accounts. Colorado Governor Jared Polis ordered in March 2020 that regular COVID-19 UI benefits not be charged against employers' UI tax accounts. The CDLE has not been charging employer SUI tax accounts with regular UI benefits that were paid to claimants in connection with COVID-19. It has not yet been announced if there will be an interest assessment in 2022.Įmployer accounts were not charged with COVID-19 UI benefits This included the payment of $1.5 million due as of September 30, 2021. State paid Septemfederal interest on the UI loan with pandemic relief fundsĬolorado Governor Jared Polis announced that employers would not be charged a federal interest surcharge in 2021 to cover the interest due on the state's federal UI loan, choosing instead to use Coronavirus Relief Funds (CRF) to prepay interest of approximately $6 million due for the last four months of 2021. ( Legislative council staff website, September 2021 forecast, pages 36-38.) It is expected that a solvency surtax will be necessary for calendar year 2023. The 2022 SUI taxable wage base will be $17,000 and $20,400 in 2023.Ĭounterbalancing the increase in the SUI taxable wage base, the law requires that employers not be assessed a solvency surtax for calendar years 20, even if the state UI trust fund balance falls low enough to warrant this move. Thereafter, the taxable wage base will be adjusted by changes in the annual average weekly wage. SB 20-207 held the SUI taxable wage baseat$13,600 for calendar year 2021 but will then incrementally increase it each year until it reaches $30,600 in 2026. Experience-rated employers may make a voluntary contribution to reduce their tax rate prior to March 15, 2022. The deadline to protest the individual employer rate computation factors is 20 days from the mailing date on the SUI tax rate notice. SUI tax rate calculation details will not be available until after the rate notices have been mailed. ![]() The CDLE states that employers needing their 2022 SUI tax rate prior to the rate notice mailing may view it in MYUI Employer starting in mid-November. 000 to Deficit").Due to legislation enacted earlier this year ( SB 20-207), there are no fund-building surtaxes or additional rates added to the 2022 SUI base tax rate. The 2022SUI tax rates will continue to consist solely of the base tax rates under Colorado unemployment law(under the column heading "Reserve Ratio. The 2022 SUI tax rates will range from 0.75% to 10.39%, up from 0.71% to 9.64% for 2021 (on the second highest schedule). The CDLE also confirmed that the highest of seven rate schedules by law will be used to compute experience-rated employer SUI tax rates for 2022. SUI tax rate notices are usually issued by late November. The Colorado Department of Labor & Employment (CDLE) announced that issuance of the 2022 state unemployment insurance (SUI) tax rate notices will be delayed until early to mid-December 2021 due to the volume of work to determine correct charging of COVID-19 UI benefit claims. Colorado 2022 SUI rate notices delayed SUI rate schedule moves to highest range SUI taxable wage base to increase
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