The Colorado Family and Medical Leave Insurance Program (FAMLI) involves a new tax that takes effect on January 1, 2023. It is now available and ready to be set up in QuickBooks Payroll. Follow step-by-step instructions for setting this up in this help article.

The FAMLI program gives all Colorado workers access to paid leave in order to take care of themselves or their family during life circumstances that pull them away from their jobs — like growing their family or taking care of a loved one with a serious health condition. 

The State of Colorado reminds all business owners that premium payments begin in 2023, so employees may start to see a FAMLI premium deduction on their pay stubs beginning January 1, 2023. FAMLI will start providing benefits to employees beginning January 1, 2024. Most eligible employees will receive up to twelve weeks of leave. Those who experience pregnancy or childbirth complications may receive an additional four weeks.

GET THE QUICKBOOKS PAYROLL UPDATE

To confirm you received the latest Update open QuickBooks and choose Employees > Get Payroll Updates. If you do not see a message that says, “You are using tax table version 22301,” click Update. See complete instructions here.

To turn on the automatic updates feature in QuickBooks so that you automatically receive payroll updates when they are released, choose Help > Update QuickBooks. Then, on the Options tab, select Yes for Automatic Update and check the Mark All box to ensure you receive all updates.

This Payroll Update ensures that you will comply with the legislation that affects your payroll and tax compliance.

Answers for QuickBooks Payroll users about famli

• The total contribution rate is 0.9% and is paid on the first $160,200 in wages. 

• Your employees pay 0.45%. Your business may choose to pay the employee portion as a benefit to your employees. 

• If you have 10 or more employees, your business pays 0.45%. If you have nine employees or less, you don’t pay an employer portion.  

• If you offer your own paid leave program, you can apply for an exemption after the start of 2023. The agency will work with you to process refunds after private plan applications have been accepted. We’ll provide more info as it becomes available.

• If you use QuickBooks Online Payroll Core, Premium, or Elite with automatic tax payments and filings turned on, or you use QuickBooks Desktop Payroll Assisted, Intuit handles making payments from your account and reports the premiums for you. 

• If you use QuickBooks Online Payroll Core, Premium, or Elite with automatic tax payments and filings turned off, or you use QuickBooks Desktop Payroll Basic, Standard, or Enhanced, you’ll need to pay and report the premiums yourself. 

See full information about the Colorado Family and Medical Leave Insurance Program here.