Colorado Family and Medical Leave Insurance
How to create Employer Expense Category for Employers with More Than 9 Employees
Starting January 1, 2023, Colorado has implemented its Family and Medical Leave Insurance Program (FAMLI).
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.
Most Colorado businesses will need to begin deducting FAMLI premiums from all employees on their payroll, including full-time, part-time and seasonal. Employers cannot collect missed premiums from employees in later pay periods. It is important to know employees are never required to pay more than 50% of the total premium.
For more full detailed information on Colorado's Family and Medical Leave Insurance Program (FAMLI) please visit here: https://famli.colorado.gov/
In AccountEdge, Colorado FAMLI is set up as an Employee Tax at .45% with the Taxable Wage Base of $160,200:
This will be applied to each employee's card automatically:
If you are an employer with more than nine employees, this is how to set up the Employer Expense portion:
1) Go to Payroll>Payroll Categories.
2) Click on the "Expense" tab and then click "New" at the bottom.
3) Enter a name for the Expense. The default name AccountEdge will provide for this Expense (when creating your first Colorado employee) is "PFML - CO".
4) Next click on the "Type of Expense" drop-down menu and choose "PFML".
5) After this select CO for the State Code. AccountEdge will automatically assign the PFML Rate of .45% and set the Taxable Wage Base at $160,200.
6) Lastly, click on the "Employee" button at the bottom and select the checkbox at the top left corner to select all employees: