Unlocking Time and Attendance in HR: What Non-Desk Businesses Need
September 17, 2025
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If you’re a Colorado employer looking to protect both your business and your team, you’re in the right place. At Beyond, we provide the essential information you need to understand how workers’ compensation works and how to stay compliant.
Simply put, workers’ compensation covers medical expenses and provides partial income replacement for Colorado employees who are injured or become ill while on the job. There are benefits for employers as well: in many cases, companies are protected from litigation related to workplace injuries or illnesses due to workers’ compensation coverage.
Let’s discuss who needs this coverage and how companies can obtain it.
By law, all public and private employers in Colorado must provide workers’ compensation coverage if they have one or more full- or part-time employees. This includes workers who are family members. In Colorado, anyone hired to perform services for pay is presumed to be an employee.
Yes. In Colorado, workers are presumed to be employees unless the business can prove they meet the state’s independent contractor standard (a 1099 alone does not automatically make someone a contractor). In limited situations, certain categories may be exempt from workers’ compensation coverage requirements, including domestic workers who work less than 40 hours per week and less than five days per week, real estate brokers/agents who work solely on commission under a contract, certain motor carrier lease-driver arrangements, limited casual farm/ranch labor or casual maintenance (when annual wages stay below the state threshold), and ski volunteers. Corporate officers and LLC members are generally treated as employees, but some may formally reject coverage if they meet the state’s criteria and submit the required rejection filing.
Colorado has additional workers’ compensation requirements for construction businesses. If you operate in construction, anyone performing construction work on a construction site must either be covered by workers’ compensation insurance or have properly rejected that coverage under Colorado rules. If you use contractors, you’re expected to ensure they meet Colorado’s workers’ comp compliance requirements — and failing to do so can lead to fines.
If you use contractors to perform construction work, Colorado generally expects you to do one of the following: (1) provide workers’ compensation coverage for your contractors (and you may charge them for their portion of the premium), or (2) obtain proof of workers’ compensation compliance from everyone you have a direct contract with. Proof of compliance typically comes in two forms: proof of workers’ compensation insurance or proof of rejection of coverage. If a contractor has no employees, the contractor must be covered by workers’ comp unless they qualify for and properly file a rejection of coverage with the Division.
Employers have two primary options to obtain coverage:
1. Private Insurance Carrier
Colorado workers’ compensation is purchased through commercial (private) insurance carriers, and employers can shop licensed insurers for coverage. Colorado also notes that Pinnacol Assurance is required to provide workers’ compensation coverage for any Colorado employer. Importantly, workers’ compensation premiums are paid by the employer — you cannot deduct any portion of the premium from an employee’s wages.
2. Self-Insurance
Employers may self-insure in Colorado only if they meet specific eligibility requirements. Generally, an employer must have been in business for at least five years (or be a subsidiary of a company with that tenure) and must either have at least 300 full-time employees working in Colorado or have (or have a parent company with) at least $100 million in assets. Self-insured employers must also demonstrate exemplary financial strength and provide safeguards such as excess insurance coverage, security (for example, a surety bond), and claims adjusting capability internally or through a third-party administrator.
Traditional Plans:
Premiums are estimated based on annual gross wages. Employers pay an upfront lump sum and possibly monthly or quarterly payments. At year-end, an audit adjusts the premium based on actual payroll.
Non-Traditional (Pay-As-You-Go) Plans:
Premiums are calculated and paid with each payroll, ensuring precise payment without upfront costs or year-end audits.
Learn more about pay-as-you-go workers’ compensation with Beyond.
Employers who fail to maintain required workers’ compensation coverage in Colorado may be fined up to $500 for each day they are uninsured, and the business may also be shut down. If an employee is injured while the employer is uninsured, the employer may be responsible for paying the claim and an additional penalty totaling 25% of the injured worker’s benefits.
After a workplace injury or occupational illness, the injured worker should notify the employer in writing within 10 working days (and if the report is late, it should still be provided as soon as possible). Employers should also report injuries to their insurance carrier within the required timeframes. Injured workers are encouraged to protect their rights by filing a Worker’s Claim for Compensation (WC15) with the Colorado Division of Workers’ Compensation, and the Division notes this should be filed within two years of the injury.
Having the right workers’ compensation insurance is essential for protecting your employees and your business. Since employees are often your most valuable resource, prioritizing their safety is critical. Insurance coverage also protects employers from costly litigation, making compliance one less thing to worry about. Tools and services like Beyond can assist your company in obtaining and managing workers’ compensation coverage effectively.
