Colorado’s new Family and Medical Leave Insurance (FAMLI) program has made it simpler for employers and employees to calculate premiums by simplifying the definition of “wages.”
The amended premiums rules adopted in August 2023 simplify the definition of “wages'' under the FAMLI Act. Instead of using the same definition used for unemployment insurance, the term now is the same as “gross wages.” This rule will become effective on January 1, 2024.
To offer additional clarity, we have a list of examples of kinds of payments that should and should not be counted as “wages” under the new rule on our Employers page under Important FAMLI Matters.
The amended premiums rules also establishes the fine for non-payment. Under the new rule, employers or individuals can be fined up to $50.00 per individual whose premiums were not timely paid.
Another rule that got an update in August pertains to local governments in Colorado.
The updated rule, which also takes effect in January, allows local governments to vote to opt-out in the way that they typically conduct similar business. The tweak aims to make FAMLI compliance easier for local governments. The rule also:
- clarifies local government notification requirements.
- removes the FAMLI Division’s obligation to provide certain local governments with a quarterly list of their employees who have opted-in, information that is readily available without assistance from the Division.
We understand that rule changes can be confusing! So if you have questions about what to count as “wages” for FAMLI purposes, or on the local government rules, give us a call at 1-866-CO-FAMLI (1-866-263-2654) any weekday between 8 a.m. and 4 p.m. MT and we’ll help you figure it out.