The Colorado Department of Labor & Employment announced that unemployment tax rates are set to increase for 2021.
Effective January 1, 2021, unemployment tax rates for experience-rated employers are to range from 0.71% to 4.10% for positive rated employers and from 5.27% to 9.64% for negative rated employers. As a comparison, unemployment tax rates in 2020 ranged from 0.58% to 7.40%.
The unemployment tax rate for standard new employers will remain at 1.70% in 2021; unchanged from 2020.
The 2021 tax rate is to be 2.07%, up from 1.61%, for new construction of buildings (Code 236) employers; 7.74%, up from 5.94%, for new heavy and civil engineering construction (Code 237) employers; and 2.91%, up from 1.61%, for new specialty trade contracting (Code 238) employers.
Colorado’s unemployment taxable wage base will remain unchanged at $13,600 in 2021.
As always, if there are any questions please do not hesitate to contact us or visit our website at www.thomas-and-company.com.