Employers

What happens in your workers' lives can impact your business at any time. Car Accidents, serious illnesses like cancer, welcoming a new child — some life events do not wait until we are ready for them, but the FAMLI program can help you be ready to rise to the occasion when your employees need you the most.

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 .045% paid by the employer and .045% 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. 

Businesses with nine or fewer employees do not have to contribute to the program, but do need to remit their employees' share (.045%)  of premium payments on behalf each quarter. This can be done through a simple payroll deduction. 

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.

Benefits to Employers:

  • Family and medical leave insurance increases employee retention and increases labor force participation through a small, shared cost to employer and employee.
     
  • Small businesses are the heart of communities across Colorado. Soon, small businesses will be able to leverage a benefit previously only larger employers could afford. Taking advantage of paid family and medical leave can help small businesses attract and retain top talent.
     
  • You invest a great deal of time and training in your employees from day one. Hiring is not an inexpensive or brief process, and training an employee can take months or even years. The FAMLI benefit allows employers to better retain employees with specialized training and knowledge by allowing them to take the leave they may need without worrying if they will have an income to pay their bills and living expenses. 

 

FAMLI Premium Calculator

Now is the time to plan for the FAMLI program. 
Employers will start collecting FAMLI premiums for Paid Family and Medical Leave on January 1, 2023. The premium is 0.9% of each employee’s gross wages. Use the calculator to estimate your premiums. Premiums are capped at the Social Security Wage Base.

Disclaimer: these calculations should only be used as estimates and may not be equal to the exact amount of your premium. 

Important details:

All employers will either withhold employees' premiums from their paychecks or pay some or all of the premium on their employees’ behalf. Employers cannot collect missed premiums in later pay periods.

Employers may withhold up to 50% of the total premium from an employee. The employer is responsible for paying the other half, unless they are exempted from the FAMLI program by statute. (See table below for possible employer exemptions) However,  if the employer is exempt, it is important to know employees are never required to pay more than 50% of the total premium. 

By law, the FAMLI Division Director is required to recalculate the premium rate every year past 2025 and determine if adjustments to the premium rate need to be made. Current Colorado law caps the premium at 1.2% meaning it will not be assessed any higher than this amount. 
 

Responsibilities Under Proposition 118

Employer Type
 

Employer Premium
 

Employee Premium
 

No Premium
 
9 or fewer employees
 


 
 
10 or more employees

 


 
 
Participating Self-Employed  

 
 
Participating Local Government Employee  

 
 
Nonparticipating local government    
Nonparticipating Self-Employed    
Employer with Private Plan