SB 23-232

Senate Bill 23-232 in Colorado aims to comply with federal unemployment tax requirements by reducing employer premium rates and adjusting how funds are allocated within the state's employment support system. The bill also changes how money is managed in various funds, allowing for more flexibility in using these funds for costs related to bonds or notes issued by the division of unemployment insurance. Additionally, it simplifies reporting requirements for employers by switching from submitting premium reports to wage reports. This bill was signed into law on May 1, 2023, and took effect immediately on that same date.

Official Summary

For purposes of complying with requirements of the "Federal Unemployment Tax Act", the act reduces employer premium rates by 10% across all rates in the standard premium rate schedule. Additionally, the act creates a schedule for the support surcharge rate (schedule), which is used to establish contributions to the employment support fund, the employment and training technology fund, and 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 act 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. The act 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 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 act eliminates the requirement for employers to submit premium reports to the division and instead requires employers to submit wage reports. APPROVED by Governor May 1, 2023 EFFECTIVE May 1, 2023 (Note: This summary applies to this bill as enacted.)

Votes