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e-Alert: Colorado Family and Medical Leave Insurance Program Payroll Contributions start on January 1, 2023

By December 15, 2022No Comments

Background

State paid family and medical leave programs are increasing nationwide, and the New Year will bring a fresh set of requirements to Colorado employers. The Colorado Paid Family and Medical Leave Insurance (CO FAMLI) collection of contributions for covered individuals will begin January 1, 2023.

Summary

Covered Employers

All Colorado employers that employ at least one employee in Colorado or paid wages of $1,500 during a calendar quarter must participate in the program.

Contributions

Employers are required to begin premium deductions on January 1, 2023. All employers, regardless of size, will be required to register with the CO FAMLI Division before the first premium payment is due at the end of the first quarter of 2023. It is important to note that when counting employees, your total nationwide employee count will be what determines whether or not you pay the employer share of the premium. 

  • Employers with at least one employee in Colorado and ten or more employees must begin to collect and remit a premium of 0.9% of wages to the Division of Family and Medical Leave Insurance. This premium is split between the employer and employee and collected via payroll deduction
  • 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

Employers can opt-out of the program provided they have an approved private plan. Final private plan rules have been adopted and are available for more information. The FAMLI Division will begin accepting applications for private plans during the first quarter of 2023. All Colorado employers will begin paying premiums in 2023. Those who secure an approved private plan effective on or before January 1, 2024 may apply for a refund of paid 2023 premiums, minus the private plan administration fee.

Employee Eligibility

Covered employees must have earned at least $2,500 in wages within the state within the last four calendar quarters. Self-employed individuals may also opt to participate in the program if they live and work in Colorado.

Qualifying Reasons

Beginning January 1, 2024, eligible employees will be able to use FAMLI for the following reasons:

The PFML program provides up to twelve (12) weeks of paid leave per year, or sixteen (16) weeks for a serious condition related to pregnancy or childbirth complications. The State has issued a handbook for the FAMLI program, and an FAQ for common inquiries.

  • Caring for a new child during the first year after the birth, adoption, or foster care placement of that child
  • Caring for a family member with a serious health condition
  • Caring for your own serious health condition
  • Planning for a family member’s military deployment
  • Obtaining safe housing, care, and/or legal assistance in response to intimate partner violence, stalking, sexual assault, or sexual abuse

Notice Requirements

Employers are required to notify their employees about the FAMLI program by January 1, 2023. The required notices and other tools can be found in the FAMLI Employer Toolkit.

Portal Registration

The My FAMLI+ Employer is an online employer services portal that Colorado businesses will use to manage their FAMLI accounts.

Employer Next Steps

  • Employers should register for their My FAMLI+ Employer portal, which is Business registration is now open. The My FAMLI+ Employer will operate similarly to My UI Employer, allowing employers to report wage data, remit premium payments, apply for exemption with a private plan, and upload letters of declination votes
  • If you have not already distributed the required Program Notice Poster to your workforce, ensure you do so before January 1, 2023
  • Employers should post the Break Room Poster
  • If you are a Full-Service or Virtual HR Client, reach out to HRK so we can assist in reviewing your current leave policies and make adjustments, as necessary
  • If you are a Full-Service or Managed Payroll client, HRK will be working with you to ensure any necessary payroll tax contributions are set up correctly
  • If you are a Full-Service or Benefits client, HRK/Hilb Group will be working with you to determine if you will contribute to a state plan or choose a private plan that meets or exceeds the state-mandated requirements
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This content is provided with the understanding that HR Knowledge is not rendering legal advice. While every effort is made to provide current information, the law changes regularly and laws may vary depending on the state or municipality. The material is made available for informational purposes only and is not a substitute for legal advice or your professional judgment. You should review applicable laws in your jurisdiction and consult experienced counsel for legal advice. If you have any questions regarding this content, please contact HR Knowledge at 508.339.1300 or email us.

 

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