Please read the following information regarding the new FAMLI Act.
What is FAMLI:
Colorado voters approved Proposition 118 in November 2020, paving the way for a state-run paid Family and Medical Leave Insurance (FAMLI) program. FAMLI supports both employees and businesses alike by protecting and supporting them when certain life events happen.
Starting in January 2024, most Colorado workers will be able to apply for FAMLI leave benefits to help them get through the following circumstances:
- Caring for a new child during the first year after the birth, adoption, or foster care placement of that child.
- Caring for a family member with a serious health condition.
- Caring for your own serious health condition
- Making arrangements for a family member’s military deployment.
- Obtaining safe housing, care, and/or legal assistance in response to intimate partner violence, stalking, sexual assault, or sexual abuse.
The FAMLI 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 facilitated by your employer. Most workers will see a FAMLI deduction coming out of their paychecks starting in January 2023.
- The 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 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 can opt to pay for 100% of the cost).
- Employers who offer their own paid leave program may apply for an exemption.
- Employers 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. This can be done through a simple payroll deduction.
- We will automatically start the deductions from the employees’ wages in 2023.
- If you wish to cover the cost, please contact Flynn Accounting directly.
- You are required to put up the following breakroom poster. We also strongly suggest verbally or via email informing your employees.
If you have any questions, please use the following link to the Government website with supplemental information or call our office.
Flynn Accounting LLC