Employee or Independent Contractor under Colorado Unemployment Compensation Laws
The Colorado Employment Security Act (CESA) is designed to help protect employees from the negative consequences of unemployment, not due to any fault of their own. The benefits available depend on whether or not the individual, under Colorado law, was an employee, or whether he was an independent contractor. An independent contractor is not entitled to unemployment compensation benefits under Colorado law. When a company engages the service of independent contractors, the company does not need to pay the State of Colorado the unemployment compensation tax required for its employees. Thus, the classification of the individual as either an employee or independent contractor has great financial ramifications.
