Colorado to Introduce Paid Family Leave
Effective January 1, 2023, premiums will start being collected, through payroll deductions, for the new Colorado Paid Family and Medical Leave Insurance (FAMLI) program.
As part of the new Colorado Paid Family and Medical Leave Insurance (FAMLI) program. 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 .45% paid by the employer and .45% paid by the employee. Employers may also elect to pay the full amount if they choose to offer this as an added perk for their employees. Employees may begin accessing benefits through FAMLI on January 1, 2024.
Businesses with nine or fewer employees do not have to contribute to the program, but do need to remit their employees' share (.45%) of premium payments on behalf each quarter.
Employers who offer their own paid leave program may apply for an exemption. Exemption applications will be reviewed to determine whether or not the employer’s private plan is adequately comparable to the benefits provided by the FAMLI program.