Attention Colorado employers: Big Changes coming as of January 1, 2023. The State has started the FAMLI program. This program works similar to the Unemployment program, where a certain percentage of wages are taxed. That money is then used by the State when employees need to take family and medical leave. Here is what Colorado small business owners need to know as we transition into the new year.
Colorado’s FAMLI Changes for 2023
Colorado’s FAMLI legislation, short for Paid Family and Medical Leave Insurance Act, serves as a much-deserved 12-week departure from work. Beginning on the first of January in 2023, Denver and other Colorado employers as well as employees are legally required to pay into FAMLI. FAMLI was established to help Colorado residents expand their family or temporarily care for a loved one without the burden of work-related stress.
FAMLI is best described as a tax, currently set at 0.9% of aggregate wages, shared between employers and workers. Employees who take advantage of the opportunity to leave work for a dozen weeks will be provided 37%-90% of wages with the potential for the compensation to top out at $1,100 per week. The current rate is static, meaning it will remain at this level all the way through 2023, 2024 and 2025 at the very least.
FAMLI Points of Note for Colorado Small Businesses
Small businesses in Denver and other parts of Colorado that employ fewer than 10 employees are not required to pay the FAMLI contribution as an employer. Rather, employers with nine or fewer employees are only responsible for the 0.45% employee share.
Additional details about FAMLI are available through our CFO and payroll services at Bookkeeping & CFO Solutions 5280. Small business owners and employees can also find out more about FAMLI through the Colorado Department of Labor’s FAMLI program.
Colorado’s Secure Savings Program Points of Note
Colorado’s Secure Savings Program is another helpful addition for employers. This program allows businesses a convenient way to offer a retirement savings program to employees and contractors who would not otherwise have access to a retirement program. Once enrolled in Colorado SecureSavings.
Payroll changes can be daunting and overwhelming. However, the small business payroll experts at Bookkeeping & CFO Solutions 5280 are more than happy to walk you through these changes and ensure you are compliant.
Give our Denver small business bookkeeping and fractional CFO experts a call today at (720) 608-6240 , or email at firstname.lastname@example.org for a free small business consultation.