Vision Payroll

July 3, 2012

Colorado Issues Over $630,000,000 in Bonds to Stabilize Unemployment Insurance

Colorado Issues Over $630,000,000 in Bonds to Stabilize Unemployment Insurance
Colorado Issues Over $630,000,000 in Bonds to Stabilize Unemployment Insurance
In a letter from Colorado Governor John W. Hickenlooper and Treasurer Walker Stapleton, Colorado employers were informed of the benefits of a recent bond offering by the State of Colorado.

UITF Was Financially Weak from 2008 Recession

The Colorado Unemployment Insurance Trust Fund (UITF) was destabilized by the 2008 recession. The UITF owed more than $600,000,000 to the federal government in April 2011 and was still projected to owe more than $100,000,000 at the end of June 2012.

Bond Proceeds Used to Stabilize UITF

By using the bond proceeds to stabilize the UITF, the governor asserts the following up-front savings to Colorado employers:

  • Saves most Colorado businesses between $20-$120 per employee in 2013-2014
  • “Turns off” the solvency surcharge to businesses for calendar year 2013 for the first time since 2004
  • Moves the rates for employers based on a positive fund balance by June 30
  • Allows bond assessments to count toward businesses’ experience ratings
  • Creates potential for future lower rates as the UITF reaches financial health more quickly

The bond issuance also provides financial health to the UITF to benefit the fund for the long term through the following methods:

  • Triggers solvency measures of HB11-1288, which will help prevent federal borrowing in future economic downturns
  • Decreases interest cost associated with negative balance by half (from 3% to 1.4%), and stabilizes payments to make them more predictable
  • Provides the UITF fund with a greater buffer that will promote quicker growth of UITF balance to protect employers from higher rates during future economic downturns

Bond Assessments Will Affect Unemployment insurance Premiums

According to the governor, principal and interest will be repaid as follows:

Bond Principal Repayments (Billing notices will begin in November 2012):

  • Annual bond repayments will be streamlined with the regular billing process to minimize confusion and avoid additional bills sent to employers.
  • Statements will denote what percentage will be used for bond payment, currently estimated at about 18-25%.

Bond Interest Repayments (Billing notices will begin in September 2012):

  • Interest payments will mirror the billing process in prior years for Federal interest payments associated with the UITF’s negative Federal balance.
  • Similar to Federal interest payments, this will be collected through a separate assessment billed in September.
  • Bond interest will be charged only to businesses that have an experience rating of less than +7.

Contact Vision Payroll for Further Information

Contact Vision Payroll for further information on the Colorado UITF.

March 27, 2011

USCIS Launches E-Verify Self-Check

USCIS Director Alejandro Mayorkas
On March 21, US Citizenship and Immigration Services (USCIS) launched E-Verify Self Check, the first online E-Verify program offered directly to the US workforce. E-Verify Self Check, a fast, simple, secure and free service, enables individuals to voluntarily check their own employment eligibility status.

First Phase Open To Residents of Five States and DC

USCIS is releasing E-Verify Self Check in phases, with the first phase only accessible to users who maintain an address and are physically located in Arizona, Idaho, Colorado, Mississippi, Virginia, or the District of Columbia.

Availability to Expand After Testing and Further Improvements

The availability of E-Verify Self Check will be limited for the initial launch as the service is tested and improved upon based on the outcomes of the initial implementation.

Contact Vision Payroll Today

Contact Vision Payroll today if you have further questions on E-Verify Self Check.

December 12, 2010

Colorado Minimum Wage to Increase to $7.36 Effective January 1, 2011

Donald J. Mares, Executive Director of the Colorado Department of Labor and Employment
Donald J. Mares, Executive Director of the Colorado Department of Labor and Employment
The Division of Labor of the Colorado Department of Labor and Employment recently promulgated Colorado Minimum Wage Order 27, which increases, effective January 1, 2011, the minimum wage for the state of Colorado from $7.24 to $7.36 per hour.

Wage Adjustment Is Constitutionally Mandated

Pursuant to the inflation adjustment requirement of Section 15, Article XVIII of the Colorado Constitution, the minimum wage must be adjusted each year effective January 1.

Tipped Employee Minimum Wage Also Increases

The minimum wage for tipped employees will also increase from $4.22 to $4.34 per hour.

Find Out the Minimum Wage for All States by Visiting the Vision Payroll Minimum Wage Chart Page

Contact Vision Payroll if you have any questions on the Colorado minimum wage increase or visit our Minimum Wage Chart.

November 15, 2010

Colorado Solvency Surcharge Remains in Effect for 2011

Filed under: News — Tags: , , , , — Vision @ 5:23 pm
Donald J. Mares, Executive Director of the Colorado Department of Labor and Employment
Donald J. Mares, Executive Director of the Colorado Department of Labor and Employment
The Colorado Department of Labor and Employment has announced that since the UI Trust Fund balance as a percentage of the total wages reported by ratable Colorado employers was less than zero, the solvency surcharge would be assessed for rate year 2011.

UI Trust Balance Must Not Be Less than 0.9% of Total Wages

Whenever the UI Trust Fund balance is less than nine-tenths of one percent of the total wages reported by ratable Colorado employers, the solvency surcharge remains in effect.

Only Certain Employers Are Assessed the Solvency Surcharge

The solvency surcharge is not assessed to state and local government agencies, reimbursable and group-rated political subdivisions, and nonprofit organizations that are reimbursable employers.

Colorado Wage Base to Remain at $10,000 for 2011

The taxable wage limit is $10,000 per employee in 2011.

Find Out the Wage Base for All States by Visiting the Vision Payroll Unemployment Taxable Wage Base Page

Contact Vision Payroll if you have any questions on the Colorado unemployment taxable wage base or visit our Unemployment Taxable Wage Base page.

November 8, 2009

Colorado Minimum Wage to Decrease January 1, 2010

The Division of Labor of the Colorado Department of Labor and Employment recently promulgated Colorado Minimum Wage Order 26, which decreases, effective January 1, 2010, the minimum wage for the state of Colorado from $7.28 to $7.24 per hour. Pursuant to the inflation adjustment requirement of Section 15, Article XVIII of the Colorado Constitution, the minimum wage must be adjusted each year effective January 1. Contact Vision Payroll if you have any questions on the Colorado minimum wage increase or visit our Minimum Wage Chart.

October 12, 2008

Colorado Minimum Wage to Increase January 1, 2009

The Division of Labor of the Colorado Department of Labor and Employment recently promulgated Colorado Minimum Wage Order 25 which increases, effective January 1, 2009, the minimum wage for the state of Colorado from $7.02 to $7.28 per hour. Pursuant to the inflation adjusted requirement of Section 15, Article XVIII of the Colorado Constitution, the minimum wage must be adjusted each year effective January 1. Contact Vision Payroll if you have any questions on the Colorado minimum wage increase or visit our Minimum Wage Chart.

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