When you bring new employees on board, the last thing you want is to run afoul of workers’ compensation, unemployment insurance, wage reporting and other new hire requirements.

The Colorado Department of Labor and Employment (CDLE) publishes a monthly newsletter and offers other useful information. Once you’re registered as a business in Colorado, you should receive these emails automatically. Pay attention to their contents.

New hire and contractor reporting considerations: The debate over who’s an independent contractor or self-employed contract employee and who’s a W-2 hourly or regular employee rages on. Colorado requires employers to report contractors as new hires if their contracts are based on a Social Security number rather than a federal tax ID number. Even if you hired the person using a company tax number, you must report all new hires to the Colorado State Directory of New Hires within 20 days of the first day of work. You must provide the following information to the directory for anyone doing work for your company: full name, Social Security number, address and contract start date. Check the provided box to indicate if they’re independent contractors.

Workers’ compensation and unemployment insurance considerations: If you hire employees using Social Security numbers, you almost certainly will have to cover them under your workers’ compensation insurance program. As soon as someone accepts a job offer or contract, consult your insurance specialist to ensure you’re providing the correct coverage from the person’s first day on the job. If the person is hired under a federal tax ID number, check with your insurance specialist and tax professional to determine if you must add that person to your workers’ compensation insurance program. The same basic considerations apply for unemployment insurance coverage.

Wage reporting requirements: Quarterly wage reports to the CDLE must include new hires who are W-2 employees, whether hourly — usually no benefits except workers’ compensation and unemployment insurance — or regular employees with full benefits. Not reporting wages properly can be a very expensive proposition.

Health insurance, retirement and other benefits: It’s greatly to your advantage to have an employee handbook that explains your company’s benefit package to new employees. If you don’t have a handbook or your current one isn’t up-to-date, consult a human resources specialist who knows Colorado law or contact the local Employers Council representative for assistance.

Colorado’s Family and Medical Leave Insurance (FAMLI) program: This recently enacted employer requirement could be unfamiliar to newly hired employees or misunderstood by current employees. Information is available at https://famli.colorado.gov. The FAMLI program ensures most Colorado workers have access to paid leave to take care of themselves or their families during life circumstances that pull them away from their jobs — like growing their families or taking care of loved ones with serious health conditions. Employers and employees contribute premiums to the program. Premium payments began in 2023, and benefits are now available.

Disclaimer: The preceding is provided for informational purposes only. Consult appropriate State of Colorado and U.S. Internal Revenue Service websites and publications. Also, consult your insurance, legal and tax specialists to make sure you follow the guidelines and requirements for your unique situation.