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Colorado Passes Unemployment Tax Changes for 2024

September 12, 2023

Colorado bill S.B. 232 enacts changes to Unemployment for 2024
Alert

At A Glance

  • S.B. 232 makes changes to Colorado Unemployment Insurance.
  • New Support Surcharge tax created for employment support funding
  • Premium report filing no longer required
  • Account number format changes
  • Future updates to MyUI+ Employer Portal
  • Changes effective January 1, 2024

What is S.B. 232?

Colorado Gov. Jared Polis signed into law S.B. 232, which makes key changes to the state’s unemployment insurance (SUI) law for 2024.

Support Surcharge

Colorado SUI tax rates issued for 2024 will include a new Support Surcharge tax. The state will distribute the amounts collected from the Support Surcharge among the Employment Support, Benefit Recovery, and Employment and Training Technology Funds. It is not a certified SUI contribution and, therefore, will not be reported on the federal Form 940, Employer's Annual Federal Unemployment Tax (FUTA) Return.

Account Premium Report No Longer Required

The state will no longer require employers to file the quarterly SUI premium report, Form UITR-1. Employers must still report wage information, formerly Form UITR-1a, but the information must be e-filed unless the agency approves an exemption.

Paylocity is already compliant with the e-filing requirement.

MyUI+ Employer Portal Updates

Coming in the fall of 2023, the Unemployment Insurance (UI) Division will introduce a new system employers will be able to use to better oversee and manage their accounts. MyUI Employer+ will offer new self-service features for employers and easier access to information for TPAs (Third Party Administrators) like Paylocity. Please see MyUI+ Employer for updates and additional information as the agency progresses toward the program’s launch.

Account Number Format Update

To accommodate the updates to the MyUI+ portal, the agency will be reformatting account numbers for Colorado SUI. When the agency informs us of the new account numbers, we’ll update our system to meet the requirements. Colorado has yet to provide a date for this change; however, we’ll still be able to file returns with the current format until the transition is complete.

Next Steps

Paylocity will continue to monitor for updates and provide additional details on any action required for the Colorado surcharge as more information becomes available.

Thank you for choosing Paylocity as your Payroll Tax and HCM partner. This information is provided as a courtesy, may change, and is not intended as legal or tax guidance. Employers with questions or concerns outside the scope of a Payroll Service Provider are encouraged to seek the advice of a qualified CPA, Tax Attorney or Advisor.

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