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Ing to the law in Colorado, independent contractor taxes must be paid by the contractor as they are also classified as self-employed. This means that if you are an independent contractor, you must withhold your own local, state, and federal taxes and submit your tax report to the IRS on your own.
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.
An employee works on the premises of the employer or on a route or location designated by the employer. An independent contractor may perform work at her/his own business premises. An employee performs services personally. An independent contractor may subcontract all or part of a work assignment.
To become disqualified, your conduct would have to rise to the level of "gross misconduct." For example, if you stole money from your employer, that may qualify as gross misconduct.
In addition to including the above factors, the contract must contain a disclosure, in type which is larger than the other provisions in the document or in bold-faced type or underlined type, that the independent contractor is not entitled to unemployment insurance benefits unless unemployment compensation coverage is ...
That means paying Colorado self employment tax of 15.3%. Of that amount, 12.4% is dedicated to Social Security, old-age, survivors, and disability insurance, and 2.9% is dedicated to Medicare or hospital insurance.