Staring January 1, 2023, Colorado started the Colorado Paid Family and Medical Leave Insurance Program. FAMLI is funded by both the employee and the employer. Premiums will be due starting April 30, 2023.
How is the tax calculated?
Employer and employee contributions are calculated as a percentage of wages.
- Employers contribute 0.45% of employee wages—see the participation requirements below to determine if you’re responsible for the employer-share of the premiums.
- Employees contribute 0.45% of their wages
Employer and employee participation requirements
Both employers and employees are responsible for participating, with few exceptions.
An employer’s total nationwide employee count determines whether they pay the employer-share of the premium—employer size is calculated annually. The state will require an employee count at the registration for the first quarter for the previous year. Employers will only need to pay premiums for the employees who are located in Colorado.
- Businesses with 10 or more employees nationwide
- These businesses split the 0.9% premium between the employer and employee. The employer contributes 0.45% and withholds the employee’s 0.45% on payroll.
- Businesses with 9 or fewer employees nationwide
- These businesses do not have to contribute an employer share to the program but must collect and remit their employees' share of premium payments (0.45%) to the agency on behalf of the employee each quarter.
- What if the employer is exempt?
- Employers can receive an exemption if the state approves their private plan options.
An employee's wages will be subject to FAMLI premiums if:
- The employee's work is performed entirely within Colorado.
- The employee's work is subject to Colorado State Unemployment Tax.
If you have additional questions, here is a FAMLI resource or contact the agency by email at CDLE_FAMLI_info@state.co.us.