Winter’s coming, and so is CO’s new paid family and medical leave

Summer is here, and the outdoors beckon. But before you know it, the season’s first snow will have fallen. Make sure you don’t get caught out in the cold by taking time now to prepare for the new payroll taxes on the horizon for employers with Colorado workers. Although paid leave benefits aren’t available to workers until 2024, beginning January 1, 2023, you must begin collecting and remitting premiums to fund Colorado’s new Family and Medical Leave Insurance Act (FAMLI) program.

Wage replacement benefits

The FAMLI program will provide eligible employees with up to 12 weeks of partial wage replacement for a variety of family- and medical-related reasons, as well as other reasons associated with domestic violence and sexual assault. Employees with pregnancy or childbirth complications may be eligible for up to 16 weeks of paid leave.

While on leave, employees will receive between 37% and 90% of their wages (capped at $1,100 per week in 2024) depending on their earnings. The Colorado Department of Labor and Employment (CDLE) provides a handy online Premium & Benefits Calculator that allows employers and employees to estimate weekly wage deductions and benefits.

Program premiums