STATEMENT OF BASIS AND PURPOSE
FOR A PROPOSED PERMANENT RULE
Effective MARCH 30, 2011

1.	Summary of the basis and purpose for the rule or rule change 

Postmark Date
The basis and purpose of removing the postmark date is to administer changes to the law. 
 
Tax Withholding
To adopt tax withholding regulations that provide an opportunity for claimants to elect a voluntary tax withholding option for each monetary determination that the claimant receives to ensure that the Unemployment Insurance Program is in compliance with federal programs and guidelines.

Premiums and Assessments
In August 2009 the UI Program began paying state-extended benefits to eligible claimants.  The 2009 American Recovery and Reinvestment Act provided federal funding for some, but not all, reimbursing employers for these payments.  Until the state-extended-benefits program ends, the UI Program will send separate charging and billing statements for state-extended-benefits charges. The statements will be sent to reimbursing employers by the end of this month.  The current rule does not address the application of state-extended benefit’s reimbursement payments or trust fund assessment payments. 

The adoption of the proposed rule is necessary to comply with the law and for the economic welfare of the people of the state of Colorado.

2.	If emergency, give reasons 

Not Applicable
	
3.	Authority for rule

The authority for the amendments of the rules is in 8-72-102 C.R.S.

Rules.  (1) The director of the division has the power to adopt, amend, or rescind, in accordance with section 24-4-103, C.R.S., reasonable and necessary rules relating to the administration of the “Colorado Employment Security Act” and governing hearings and proceedings under such act.