Colorado’s Family and Medical Leave Insurance Program (FAMLI) Resources
Colorado’s Family and Medical Leave Insurance Program (FAMLI) has gone into effect. Here is what you need to know.
What is FAMLI?
Colorado voters approved Proposition 118, which laid the groundwork for the FAMLI program, in November 2020. The program is funded through premiums paid by both workers and employers (depending on how many employees the business has).
The portion paid by workers will be made through a simple payroll deduction, which is the responsibility of the employer. Employees will not be able to apply for FAMLI leave benefits until January 2024, but most workers will see a FAMLI deduction coming out of their paychecks starting in January 2023.Payroll Deductions at a Glance:
- Premiums are set at 0.9% of the employee’s wage with employers paying 0.45% and employees paying 0.45%.
- Employers must cover at least 0.45% but they can cover any amount above that up to the entire 0.9%.
- The maximum employee share of FAMLI premiums is set at 0.45% of employee wages through 2024.
- For every $100.00 an employee makes, an employer may deduct up to $0.45 (for someone making $45,000/year that’s a deduction of less than $8 per biweekly paycheck).
- Employers with fewer than nine employees are only required to deduct the employee portion.
- To see what the estimated deduction will be, try the premium and benefit calculator on famli.colorado.gov.
Other Employer Obligations:Notify: Employers are required to notify their employees about the FAMLI program. If you haven’t done this already, Colorado’s Department of Labor and Employment has a Toolkit for Employers available here: https://famli.colorado.gov/employers/famli-toolkit-for-employers. It includes posters, paycheck inserts, and more.
Register: Most employers will need to register in the FAMLI online portal system to report wage data and remit premium payments (this system is similar to the My UI Employer system used for worker’s compensation management). If you have a third-party administrator (TPA) or service provider handling your payroll and wage tracking requirements, check with your TPA or service provider to see if they have enrolled your company on your behalf. Register here: https://famli.colorado.gov/employers/my-famli-employer.
Update Written Policies and Handbooks: Employers should consider updating their employee handbooks and any other written policies to further explain the program and provide resources and information to employees.
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