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Colorado Paid Household Go away | Contribution Charge

State paid household depart (PFL) applications aren’t slowing down anytime quickly. Again in 2020, Colorado voted to implement its personal Paid Household and Medical Go away Insurance coverage (FAMLI) program. And starting in 2023, the Colorado paid household depart program takes impact.

What does this imply for Colorado employers? It means you will have a brand new payroll tax to deal with. Learn on to study extra about your Colorado paid depart obligations.

Colorado paid household depart FAQs for employers

Colorado’s paid household depart goals to supply staff with protected paid time without work for qualifying occasions, like caring for a brand new little one. The state joins the prevailing—and rising—record of states with paid household depart legal guidelines, together with Maryland and Washington. 

PFL works equally to the federal Household and Medical Go away Act (FMLA). Just like the FMLA, PFL protects worker jobs whereas staff care for a kid, member of the family, or themselves. However in contrast to the FMLA, paid household depart applications by state present staff with paid time without work. 

Study the ins and outs of Colorado’s FAMLI program with the next FAQs for employers.

1. When does this system begin?

The Colorado paid household depart efficient date for contributions is 2023, one yr earlier than Colorado staff can obtain advantages.

Hold the next vital dates associated to paid household depart Colorado in thoughts:

  • January 1, 2023: Contributions start
  • January 1, 2024: Qualifying staff can start taking advantages

2. Who pays?

Colorado staff and qualifying employers pay FAMLI premiums. So, withhold the premium from worker wages. If relevant, you have to make an identical employer contribution.

Right here’s the breakdown:

  • All staff contribute 
  • Employers with 10 or extra staff should additionally contribute 

You might be able to provide a non-public paid household depart plan to staff. The plan should present the identical (or higher) advantages because the state FAMLI plan with no extra prices or restrictions. Earlier than choosing a non-public plan, you have to get approval from Colorado’s Division of Labor and Employment’s FAMLI Division. You should deal with FAMLI premiums till the FAMLI Division opinions and approves your plan. 

3. What’s the contribution price?

The entire Colorado PFL price is 0.90% of worker wages, as much as the Social Safety wage base ($160,200 for 2023). Of this 0.90% price, staff pay 0.45%, and qualifying employers (these with 10 or extra staff) pay 0.45%. 

Colorado paid family and medical leave insurance (FAMLI) is 0.90%, split 50/50 between employees and, if applicable, employers with 10 or more employees

Employers with 9 or fewer staff usually are not chargeable for the employer share of 0.45%.

The FAMLI premium applies to all varieties of funds that Colorado considers wages. This consists of funds outlined as wages beneath FUTA, suggestions, and worker contributions to 401(okay) plans. For extra info on how Colorado defines “wages,” try the state web site

Let’s say you pay an worker $2,000 per pay interval. You should withhold $9 ($2,000 X 0.0045) from their paycheck for the FAMLI program. When you’ve got 10 or extra staff, you additionally have to contribute $9. 

Proceed withholding (and contributing, if relevant) the FAMLI premium from worker wages till they earn above $160,200. This implies the utmost quantity you’ll withhold in 2023 is $720.90 ($160,200 X 0.0045) per worker. Likewise, the utmost quantity you’ll contribute (if relevant) in 2023 can be $720.90 per worker. 

4. Which staff qualify for depart?

Starting January 1, 2024, staff who earned $2,500 over the earlier yr for work in Colorado can take depart for qualifying causes.

Workers obtain as much as 12 weeks of depart to:

  • Look after a brand new little one (start, adoption, or foster care placement)
  • Take care of a severe well being situation
  • Look after a member of the family with a severe well being situation
  • Make preparations for a member of the family’s navy deployment
  • Take protected depart because of home violence, stalking, or sexual assault or abuse

Workers who expertise being pregnant or childbirth problems could obtain an extra 4 weeks. 

Your staff can take steady or intermittent depart. Or, staff can take depart within the type of a lowered schedule. 

The profit quantity staff obtain relies on a sliding scale. The FAMLI program pays as much as 90% of the worker’s common weekly wage.

5. What are my obligations?

As a Colorado employer, you will have a number of obligations regarding the Colorado FAMLI program:

  1. Notify staff
  2. Deal with contributions
  3. Submit wage studies

Notify staff

You should should notify your staff in regards to the paid household depart program by January 1, 2023. And, you have to publish the 2023 FAMLI Program Discover in a outstanding location in your office by January 1, 2023. 

Deal with contributions

You should withhold worker contributions of 0.45% from worker wages. When you’ve got 10 or extra staff, you have to additionally contribute 0.45%. 

Make quarterly premium funds to Colorado’s FAMLI Division by way of:

  1. On-line funds out of your My FAMLI+ Employer account (anticipated to launch on the finish of 2022)
  2. ACH credit score
  3. Verify
  4. On-line invoice pay

Submit wage studies 

Along with quarterly premium funds, you have to submit studies to the FAMLI Division every quarter. You possibly can submit quarterly wage studies inside your My FAMLI+ Employer account.

Let Patriot’s Full Service Payroll deal with Colorado FAMLI deposits & studies for you.

  • Federal, state, and native payroll tax deposits and filings
  • Tax submitting accuracy assured
  • Free USA-based assist

6. The place can I get extra info?

Take a look at the Colorado Household and Medical Go away Insurance coverage Program (FAMLI) web site for extra info.

Colorado household depart at a look

Keep on prime of the paid household depart legislation with the next quick information:

  • Payroll contributions start January 1, 2023
  • Workers should pay a contribution price of 0.45% 
  • Employers with 10 or extra staff should additionally pay 0.45%
  • Eligible staff obtain as much as 12 weeks of paid and guarded depart, plus an extra 4 weeks for qualifying causes
  • Workers can use the time to take care of themselves, a toddler, or a member of the family 
  • The profit quantity relies on a sliding scale and pays as much as 90% of the worker’s common weekly wage
  • Employers should present a written discover to staff about this system

Computing the brand new Colorado paid household depart premium may be tough. With Patriot’s payroll software program, you don’t want to fret about calculating contribution quantities. And while you join Patriot’s payroll companies, we’ll deal with submitting and deposits for you. Why make payroll tougher than it must be? Get your free trial as we speak!  

This isn’t meant as authorized recommendation; for extra info, please click on right here.

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