Worker's Compensation & Unemployment Insurance
Worker's Compensation Insurance
Colorado employers purchase insurance coverage through a commercial insurance carrier or, if qualified, through self-insurance programs. There are three ways in which an employer may obtain workers' compensation coverage:
Self-Funding (Individual); or
Self-Funding (Groups and/or Pools)
Maintain a Safe Working Environment
Certification status is granted by the Premium Cost Containment Board to employers who can document that they have had a loss prevention/loss control program in effect for at least one year. Certified employers are eligible for up to a 10% reduction in their workers' compensation insurance premium. For more information, visit the Employer Safety & Loss Control page
Colorado's unemployment insurance rates
vary depending on the type of employer, the history of taxes, and benefits paid.
Employers in non-construction related industries will pay the standard rate, which is comprised of two components:
Beginning base rate (1.7 percent)
Bond Principal Rate (.38 percent)
The combined rate for new employers in non-construction related industries is 2.08 percent on the first $11,800 of each employee's calendar year earnings.
After an employer has paid wages for a sufficient number of quarters, it is eligible for a computed rate based on the experience of the business.
The formula for a computed rate is:
Total Premiums Paid
into the account minus Total Benefits Charged
to the account divided by the Average Chargeable Payroll
. The result of this formula is the percent of excess.