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CCH® UNEMPLOYMENT INSURANCE — 09/28/09

Colorado amends its UI law regarding employee leasing companies

Colorado has amended its Employment Security Act as follows:

Employee leasing companies. The Act now requires employee leasing companies to notify the Division as to whether the company elects to report and pay unemployment insurance taxes as the employing unit or whether it elects to report taxes attributable to employees under the respective accounts and rates for each work site employer. Employee leasing companies electing to report and pay unemployment insurance taxes as the employing unit under its own unemployment accounts and tax rates are permitted to change the election one time after the initial election by notifying the Division no later than the end of the current calendar quarter. An employee leasing company's election to pay unemployment taxes under the respective unemployment accounts and tax rates of the work site employer is final and may not be reversed.