Self-employed individuals that are Colorado residents are eligible to take FAMLI leave.
Those who are self-employed must live and work in Colorado, may voluntarily opt in to coverage and agree to pay premiums (0.45% of wages) for a minimum of three years. Self-employed individuals who do not wish to participate in FAMLI, do not need to take any action to opt out of the program. Simply don’t do anything.
How to participate: Coloradans who are self-employed and want to voluntarily participate need to register with the FAMLI Division.
Register with My FAMLI+ Employer. Self-employed workers must be registered in My FAMLI+ Employer before they can apply for FAMLI benefits. While there is no open enrollment period, you will need to pay premiums for one quarter before you can collect FAMLI benefit payments. To complete registration, self-employed workers need to provide their most recent tax transcript from the IRS, and any applicable W-2’s. For more information on how to register, see this video.
Elective coverage begins on the date the notice of election is filed, and benefits are available after you’ve reported and paid premiums for at least one quarter. Your first premium payment will be due on the next quarterly reporting deadline for employers. Premiums are due by the end of the month following each completed quarter (January 31, April 30, July 31, and October 31).
After qualifying for coverage, you will use the My FAMLI+ Employer portal to upload wage reports and pay premiums, and the My FAMLI+ benefits portal to apply for benefits. Starting with the second quarter of 2025 (April - June), all wage reports will require supporting documentation to be submitted. Wage reports submitted without supporting documentation may be considered late and subject to fines. You need to submit a wage report even if your wages from self-employment drop to zero. Premiums are paid on wages up to the Federal Social Security Wage Cap, which is $176,100 for earnings in 2025.
Submit your annual tax documents every year you participate in the FAMLI program by December 1. Failure to submit these documents in a timely manner may interfere with benefits and result in fines. If the FAMLI Division determines that wages reported by the individual are incorrect, the Division can revise the wages to reflect actual or a reasonable estimate of gross income from self-employment. If the individual disagrees they can file a reconsideration of that adjustment.
If you are a sole proprietor, or an owner of a family business that does not have any employees, or you use an S-Corp business structure and are still unsure whether you qualify as self-employed or as an employer, here are some things to know:
The structure of a business isn’t what matters for FAMLI compliance. What matters is whether the business has qualifying employees.
- If you own 25% or less of a business, the FAMLI Division will not automatically presume that you are ‘self-employed’. You will need to show that any work performed for that business is primarily free from control and is part of your own independent trade or business.
- Under the FAMLI Act, an “employee” is any individual, including a migratory laborer, performing labor or services for the benefit of another, irrespective of whether the common-law relationship of master and servant exists. The FAMLI Act’s definition of “employee” includes a two-part exception:
- If a person is both primarily free from control in the performance of their work, and that work is part of their independent profession or trade, then that person is not an employee, and payments to them would not be subject to premiums.
- Individuals who meet this exception would be considered “self-employed,” and their participation in FAMLI is optional.
Calculating Your Premiums and Benefits as a Self-Employed Individual
Self-employed workers who voluntarily wish to participate in FAMLI are responsible for paying 0.45% of their gross income from self-employment. If you decide to participate, you must submit a federal tax transcript and any applicable W-2’s in order to elect coverage.
In all cases, the premiums and benefit payments for the year will be based on gross income from self-employment. For an estimate about how much you may receive in benefits or how much you will pay in premiums, please see the FAMLI premiums and benefits estimator on our website. Select the “salary” pay option and input your gross income from self-employment as your yearly income. Please remember this is an estimate only.