Colorado’s unemployment fund could run out of money next month. Here’s what that means for businesses.
By the time Colorado does its annual June checkup of the special fund used to pay unemployed workers, the account will likely be empty, and possibly in the red.
Out-of-work Coloradans should be OK, though. They’ll still get unemployment pay because the state, as it’s done in the past, will borrow money from the federal government to pay the claims.
But unemployment insurance premiums paid by employers will rise sharply in order to refill the Unemployment Insurance Trust Fund — at least 54% and as much as 86% more per employee for a company of five workers, according to an example offered by the state Department of Labor and Employment.
Nearly a half-million Coloradans filed for unemployment in the eight weeks since coronavirus safety measures went into place in March.
“We paid $375 million on unemployment last (calendar) year and we’re seeing that on a monthly basis now,” said Cher Haavind, the agency’s deputy executive director. “I think that’s a good comparison of pre-COVID and where we are today.”
Read more via The Colorado Sun.
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