Colorado Federal Interest Repayment
Federal Interest Repayment
Colorado employers pay premiums into the Colorado Unemployment Insurance Trust Fund
to pay for unemployment benefits. The recent economic downturn caused an unprecedented
demand for unemployment benefitss in Colorado and across the country. In January
2010, they joined other states in borrowing money from the federal government so that
they could continue to pay unemployment benefits from the states’s Unemployment Insurance
Unless Congress acts, by law, certain experience-rated employers must make an annual
interest payment on borrowed money from the federal government. All active, experienced
rated employers must share in the repayment of the federal loan interest except:
- State Government
- Political Subdibisions
- Employers with Benefits-charged account balance of zero
- Employers with percent-of-excess greater than or equal to +7
- Reimbursing employers
To calculate the Trust Fund Assessment rate, they will determine the total gross wages
of all liable experienced rated employers for the second quarter of the previous year
(amount A). Then they will determine the sum of the annual interest on the loan and
the administrative costs during the interest-repayment period (amount B). They
divide amount A into amount B to the the TFA rate.
To determine what the employer will pay, they will multiply the employer’s gross wages
from the fourth quarter of the previous year by the TFA rate.
The first payment to the Federal government is interst for January 2011 through April
2011. In early July 2011, they will send bills titled Unemployment Insurance
Notice of Trust Fund Assessment; payments must be received 30 days from the bill date.
Employers can send a check or money order payable to the Colorado State Treasurer.
Employers must be sure to put their unemployment account number on the payment and
return the TFA billing statement with their payment.
If an employer has any outstanding amounts due on their account, payments will be
applied in the following order, as applicable:
- Trust Fund Assessment
- Premium Penalities
- Premium Interest
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