Colorado Family and Medical Leave Insurance (FAMLI)

Starting January 1, 2023, Colorado requires that all employers withhold premiums from employees' checks for Family and Medical Leave Insurance (FAMLI) unless the employer has an 'Approved Private Plan'.

Click here for more information regarding FAMLI on the Colorado website.

Employers and their employees are both responsible for funding the program and may split the cost 50/50. The premiums are set to 0.9% of the employee’s wage, with 0.45% paid by the employer and 0.45% paid by the employee. 

Businesses with nine or fewer employees do not have to contribute to the program but do need to remit their employees' share (0.45%) of the premium on behalf of employees each quarter. This can be done through a simple payroll deduction. Employers are required to begin these premium deductions on January 1, 2023. All employers, regardless of size, will be required to register with the FAMLI Division before the first premium payment is due at the end of the first quarter of 2023. Benefits will become available to workers starting in January 2024.

You will have to select CO as the Default FamLv State on the Company Payroll Defaults tab and set up a Family Leave Employee payroll item in each company any time before the first paycheck in 2023. The employee rate has been set up by us on the Fam Emp tab in Setup>Payroll Taxes. This is a global setting and if you change this rate you will be changing it for all employees for all clients.  For clients with an approved private plan, you will have to mark each employee as Fam EMP exempt on the Exemptions tab. 

Select Setup>Company Information and select the Company Payroll Defaults tab as shown below.

Select CO from the list as the Default FamLv State.

Go to Setup>Payroll Items and create a Family Leave Employee item as shown below.

If a client has 9 or fewer employees, you do not have to set up an employer portion of the tax.

To set up the employer portion of the premium for clients with 10 or more employees:

1. Go to Setup>Payroll Taxes and enter the rate on the Fam Co. tab as shown below.
   
   
   
   
2. Go to Setup>Payroll Items and create a new  Family Leave Company item as shown below.
   
   

Do NOT add these items to the Payroll Templates

If the employer is paying the employee share of the tax for Payroll Check writing:

Set up an Other Income item as shown below to reimburse the employee and add it to the bottom grid of the payroll template(s).

If the employer is paying the employee share of the tax for After-the-Fact Payroll:

Set up an Other Income item as shown below to reimburse the employee and add it to the top grid of the payroll template(s) below the Family Leave Employee item. You will have to enter the amount that should be withheld in both fields.