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:
  • Commercial Insurance;
  • 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

Unemployment Insurance

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.

Computed Rate

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.