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Colorado Paid Family and Medical Leave Insurance (FAMLI)

Overview

Colorado's Paid Family and Medical Leave Insurance (FAMLI) program, also known as PD-FML, provides paid leave benefits to eligible employees for family and medical reasons. ProPay automatically handles FAMLI premium calculations and withholdings for Colorado employers.

Note: FAMLI premium rates and wage ceilings are updated annually. Always verify current rates at the start of each calendar year.

2026 Premium Rates

Employee premium: 0.45% Employer premium: 0.45% (for employers with 10 or more employees) Wage ceiling: $184,500 (Social Security wage base for 2026)

Key Rules

  • All employees pay the employee premium (0.45%)
  • Only employers with 10 or more employees pay the employer premium (0.45%)
  • Premium rates are entered in ProPay and calculated automatically

Eligibility Requirements

Employer Eligibility

Employers must participate in FAMLI if they:

  • Have employees working in Colorado
  • Pay wages subject to Colorado unemployment insurance

Employer Size Threshold

  • Employers with fewer than 10 employees: Exempt from paying employer premium (but must withhold employee premium)
  • Employers with 10 or more employees: Must pay both employee and employer premiums

The employee count is based on the number of employees during the previous calendar year.

Employee Eligibility

Employees are eligible for FAMLI benefits if they meet the program's earnings and work requirements. All Colorado employees pay premiums regardless of employer size.

Setting Up FAMLI in ProPay

Automatic Withholding

If an employer is subject to Colorado unemployment and disability taxes, FAMLI premiums will be automatically withheld from employee paychecks and the system will accrue the employer's liability.

Configuration Options

ProPay provides the following setup options:

Option 1: Exempt from FAMLI

If your employer is exempt from FAMLI:

  1. Go to Employer > Employer Setup > Screen 3 (Tax Exemptions and Benefit Accruals).
  2. Check the box: Exempt from PD-FML.
  3. Save your changes.

Note: Exemption is rare. Most employers must participate. Contact the Colorado FAMLI Division for exemption eligibility.

Option 2: Withhold Employee Premiums

To enable automatic premium withholding:

  1. Go to Employer > Employer Setup > Screen 3 (Tax Exemptions and Benefit Accruals).
  2. Check the box: Withhold Payments of PD-FML.
  3. Save your changes.

Option 3: Employer Pays Employee Portion

If your employer chooses to pay the employee's portion:

  1. Go to Employer > Employer Setup > Screen 3 (Tax Exemptions and Benefit Accruals).
  2. Check the box: Pay employee's portion of PD-FML.
  3. Save your changes.

For Employers with Less Than 10 Employees

  1. Go to Employer > Employer Setup > Screen 3 (Tax Exemptions and Benefit Accruals).
  2. Check the box: Employer exempt from PD-FML.
  3. Leave the Employer Contribution Rate at 0.00
  4. Verify the Employee Contribution Rate is set to 0.45000
  5. Save your changes

This configuration will:

  • Withhold employee premiums (0.45%)
  • Not calculate employer premiums

For Employers with 10 or More Employees

  1. Go to Employer > Employer Setup > Screen 3 (Tax Exemptions and Benefit Accruals).
  2. Do not check the exempt box.
  3. Enter the Employer Contribution Rate: 0.45000 (for 2026)
  4. Verify the Employee Contribution Rate is set to 0.45000
  5. Save your changes

This configuration will:

  • Withhold employee premiums (0.45%)
  • Calculate employer premiums (0.45%)
  • Accrue employer liability

Premium Payments

Payment Schedule

FAMLI premiums are paid quarterly.

Quarterly Due Dates:

Quarter Period Due Date
1st Quarter January - March April 30
2nd Quarter April - June July 31
3rd Quarter July - September October 31
4th Quarter October - December January 31

How to Pay

ProPay will automatically generate a check on the last pay date of each quarter, payable to:

Division of Family and Medical Leave Insurance PO BOX 5070 Denver, CO 80217-5070

For alternative payment methods (electronic payment, online portal, etc.), visit the official Colorado FAMLI website: https://famli.colorado.gov/employers

Troubleshooting

PD-FML Not Being Withheld from Employee Paychecks

Solution:

  1. Verify that the employee is not marked as exempt
  2. Check that the correct employee contribution rate (0.45%) is entered in the system
  3. Ensure the employer is subject to Colorado unemployment taxes
  4. Confirm the "Withhold Payments of PD-FML" option is enabled
  5. Check that employee wages are below the wage ceiling ($184,500 for 2026)

Employer Contribution Not Calculating Correctly

Solution:

  1. Confirm the number of employees is 10 or more (based on the previous year)
  2. Verify the employer contribution rate is set to 0.45000 (for 2026)
  3. Ensure the "Employer exempt from PD-FML" box is not checked
  4. Check that the employer is properly set up for Colorado taxes

Unable to Generate Quarterly Payment Check

Solution:

  1. Ensure the system date is correct
  2. Verify that all required fields for check generation are completed
  3. Check that there are FAMLI premiums accrued for the quarter
  4. Confirm the payee information is correctly entered in ProPay

Incorrect Premium Amounts

Solution:

  1. Verify the current year's premium rates (0.45% employee, 0.45% employer for 2026)
  2. Check that the wage ceiling is set to the Social Security wage base ($184,500 for 2026)
  3. Ensure you're using the correct employer size category (10+ employees vs. fewer than 10)
  4. If the issue persists, contact Paysoft support

Frequently Asked Questions

Q: When did FAMLI contributions begin? A: FAMLI premium collections began on January 1, 2023. Benefits became available starting January 1, 2024.

Q: Do all employers have to pay the employer premium? A: No. Only employers with 10 or more employees must pay the employer premium. All employers, regardless of size, must withhold the employee premium.

Q: Can employers opt out of FAMLI? A: No. FAMLI participation is mandatory for Colorado employers. Limited exemptions may apply for certain local government employers and self-employed individuals.

Q: What if an employee works in multiple states? A: FAMLI premiums apply to wages earned for work performed in Colorado. For multi-state employees, consult with a payroll tax professional.

Q: Can employers use private insurance instead of FAMLI? A: Yes. Employers may apply to use a private plan that provides equal or greater benefits. Approved private plans can replace FAMLI coverage. Visit https://famli.colorado.gov for private plan approval requirements.

Additional Resources

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