Colorado Unemployment Support Surcharge Effective January 1, 2024

Colorado State Unemployment Insurance (COSUI) tax rates for 2024 will include a new Support Surcharge tax. The state created this additional tax, signed into law as part of S.B. 232, to fund several employment and training resources.

The surcharge is calculated on the same taxable wage base as the COSUI tax and is deposited along with COSUI premiums. Individual employer surcharge rates will be included on annual rate notices issued by the agency as well as accessible via the MyUI+Employer portal.

The Support Surcharge is not a certified SUI contribution and, therefore, you do not need to report it on the Federal Form 940, Employer's Annual Federal Unemployment Tax (FUTA) Return.

For more information on Colorado wage and payroll tax laws, check out our Colorado Wage and Payroll Tax Facts page.

Next Steps

Paylocity will support this tax and provide updated information as it becomes available.

Thank you for choosing Paylocity as your Payroll Tax and HCM partner. This information is provided as a courtesy, may change, and is not intended as legal or tax guidance. Employers with questions or concerns outside the scope of a Payroll Service Provider are encouraged to seek the advice of a qualified CPA, Tax Attorney or Advisor.