June 28, 2023
Colorado law creates new SUI surcharge and eliminates requirement for SUI premium reports; 2023 SUI tax rates unchanged but wage base increased
Due to legislation enacted in 2022 (SB 20-207), there were no fund-building surtaxes or additional rates added to the 2023 SUI base tax rate.
The solvency surcharge did not apply in tax years 2021 and 2022, and legislation enacted in 2022 placed a hold on the surcharge for 2023. (See Tax Alert 2020-1831)
As of June 26, 2023, Colorado had no outstanding federal unemployment insurance loan balance but has received authorization for advances of up to $50m. (Advances to State Unemployment Funds | U.S. Treasury Fiscal Data)
2023 employer SUI costs
The Colorado Department of Labor and Employment confirmed that the 2023 SUI wage base is $20,400, an increase from $17,000 for 2022.
SB 20-207 provides that the SUI taxable wage base will increase incrementally to $30,600 by calendar year 2026. Under the legislation, the variable SUI taxable wage base will be set at:
The 2023 SUI tax rates for experience-rated employers range from 0.75% to 10.39%, unchanged from 2022.
For 2023, the new employer rate is 1.7%. The SUI tax rate for other new employers is 1.7% (general construction), 6.82% (heavy construction), 1.86% (trades) and 0.2% (political subdivision group rate). (Colorado Department of Labor and Employment, Beginning Rates)
The 2023 SUI rate notices were mailed on November 30, 2022.
Published by NTD’s Tax Technical Knowledge Services group; Andrea Ben-Yosef, legal editor
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