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We want to issue a correction regarding how employers’ unemployment tax rates may be affected. The CARES Act provides funds to states to appropriate to unemployment programs. Currently, we know that if a Colorado employer pays premiums based on employee wages, if an employee receives unemployment benefits due to the business closing or business reduction due to COVID-19, benefits will not be charged to the employers’ account.

(If you are a reimbursing employer who only pays for benefits paid, you will be charged for 50 percent of the benefits charged. The Coronavirus Aid, Relief, and Economic Security Act or the CARES Act provides for the Federal Treasury to pay the other half through 12/31/20. https://www.colorado.gov/pacific/cdle/covid-19/employer-faqs)

We do not currently know how Colorado will adjust for the likely depleted state Unemployment Insurance Trust Fund. How that is addressed on a state level may or may not impact employers’ unemployment insurance tax rates in the future.

Additionally, it is currently unclear if employees on Work Share or partial unemployment benefits will receive any or all of the $600 through the CARES act. Some states have indicated that these employees will receive a prorated amount. As of 4/6, Colorado has stated these individuals “might be eligible” for $600/week in addition to regular unemployment benefits.**