Did you know that the Colorado Department of Labor and Employment (CDLE) requires all employers with at least one employee to carry Unemployment Insurance (UI)? UI is a state pool funded by employers to pay employees who find themselves in need of financial assistance while between jobs.
Every new business is assigned a beginning rate. If a business has a low claim history, their reserve pool builds up; however, as claims are awarded their reserves are drawn down. CDLE reviews each business annually and assigns a new rate based their reserves. As an employer’s reserves increase, their premium rate decreases. If their reserves are depleted, the premium rate increases until reserves are replenished.
To keep turnover low, thoroughly vet candidates to be sure they are a good fit before they are hired. Train new hires how to do their job well and share the company culture so they understand how they are expected to behave on the job. Provide an employee handbook stating company policies. If employees understand expectations, they will be better equipped to do a good job. If discipline is needed, document the incident, what was discussed, and any action taken. If the behavior persists and the employee is terminated, CDLE will provide an opportunity for the employer to explain their reasons for dismissal, and good, documented information helps. If the employee’s improper behavior was responsible for the termination, the claim may be denied, leaving the business’ reserves intact and rates low.
Don’t go it alone! At Payroll Vault we strive to keep our employers compliant in an environment where labor laws are constantly changing. We eliminate fines and penalties by making tax deposits and quarterly filings timely, and serve as trusted payroll experts. We would love the chance to work with you!