Colorado FAMLI Plans

Starting in 2023, all Colorado businesses are required to pay a tax to kickstart support for Colorado’s FAMLI program.

Colorado’s FAMLI program makes sure that all Colorado workers have access to paid leave to take care of themselves or their family during life circumstances that pull them away from their jobs — like growing their family or taking care of a loved one with a serious health condition.

For businesses with 10 or more employees, both employers and employees will contribute premiums to the 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 0.45% paid by the employer and 0.45% paid by the employee. Premium payments begin in 2023, so employees will start to see a FAMLI premium deduction on their pay stubs beginning January 1, 2023. FAMLI will start providing benefits to employees beginning 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 (0.45%) of the premium on behalf of employees each quarter.

For all the details about this program, the state has created a site specifically for employers and also a site that addresses private plans.

Did you know that you may have a better, more affordable option rather than paying the FAMLI tax?

Colorado’s FAMLI Division has approved private insurance plans that will act as a replacement for this program and will otherwise exempt small businesses from this tax. Sage Benefit Advisors has access to many of the approved private plan options and are quoting and queuing up customers for implementation in 2024. Early indications suggest that businesses that have 10 or more employees can save between 15-25% vs. paying the tax. Depending on the size of your business, this could mean a savings or hundreds or even thousands of dollars per year. Moreover, many private plans offer benefits that exceed the benefits offered on the state program. While these plans will not be in force until January of 2024, the time to shop and make decisions is now.

Book a free consultation to learn more about Colorado’s FAMLI program and to discuss Private Colorado FAMLI Insurance Plans and rates.