Plan the path for your peak in 2023
There are changes that occurred during 2022 or will be changing in 2023 that Colorado businesses should be planning for.
“Determine your peak for the year. Once you know the peak you are seeking then you can chart the most efficient and sustainable path.”
If you need help planning for the new year Wild Peak is here to help, find the path to reach your peak.
Changes in Colorado for Businesses
If you haven’t updated any non-compete clauses, you should speak with your preferred counsel for recommendations on updates. As the Colorado law has changed on the enforceability of such clauses.
Employers are required to provide unemployment benefits notices to all terminated employees. Regardless of the reason an employee’s employment has ended with you the business must provide each employee with written potential of unemployment benefits. You have already been providing unemployment general notices to employees either with new hire paperwork or at termination. But now you must also include:
Employers Name and Address
Employee Name and Address
Employee ID Number or last four digits of their SSN
Employees first and last dates of work
Employees year-to-date earnings
Employees wages for the last week they worked
Reason for separation.
If you don’t have your own form for this new expanded requirement for unemployment notices you can download the one created by the State, Employer Separation Form 22-234.docx (colorado.gov)
Law has also changed regarding employers' notifications of wage deductions. If you are making deductions to an employee's final pay to cover company property you must provide written notice and they have 15 days to return the property.
Employees now have 10 days to report a job-related injury.
CO Department of Labor is now doing compliance audits regarding job postings. All job postings must contain pay ranges and benefits. This also applies to any internal promotion postings.
For Colorado employers there will be a new payroll tax for both employers and employees for Paid Medical and Family Leave. Tax withholdings begin in 2023 but leave time will not be available until 2024. The Paid Medical and Family Leave program provides 12 weeks of paid leave for Colorado employees. In 2023 employees and employers will each pay 0.45% of the employees’ wages into this program. The tax percentage will go up in 2025. More details can be found at Employers | Family and Medical Leave Insurance (colorado.gov)
For more information on employment law changes SHRM is great resource. SHRM Search
There are some additional things you need to do for any sales to Colorado customers. As of July 2022, any order that will be shipped to a Colorado customer you must add $0.27 for State of Colorado Retail Delivery Fee. This is charged to the customer and remitted to the state by the business. I’d make sure the line item on the receipt said something like St CO Retail Delivery Fee. It is part of the new transportation package passed by the state. This is only applicable to orders that are being shipped to Colorado addresses. The fee is remitted to the state monthly by the 20th by using a new return form DR1786 or on your CO Dept of Revenue account. Retailers with active sales tax accounts were automatically registered for a retail delivery fee. Retail Delivery Fee | Department of Revenue - Taxation (colorado.gov)
On October 2 Small businesses, sales less than $100,000, must now follow the same rules as the big guys in Colorado. Sales tax within Colorado needs to be charged at the rate of the sold products destination. So, if you ship an order to Ft. Lupton you need to charge Ft. Lupton Sales tax. For Sales Tax payments you will be adding Non-Physical locations to your account for each of the towns you shipped orders. Then will have to file a return for those orders in those towns/counties. If you need to lookup sales tax rates for a customer’s address this site will give you the tax rate for every address in Colorado, Colorado Sales Tax Lookup (ttr.services)
Here is the detail on this Sales Tax change, 2022 Transition to Destination Sourcing | Department of Revenue - Taxation (colorado.gov)
If you need help planning for the new year Wild Peak is here to help, find the path to reach your peak.