FAMLI Program Rollout
Attention small business owners in Colorado: the new Family and Medical Leave Insurance (FAMLI) program began on January 1, 2023. First payments are due by April 30th, 2023. FAMLI is a state-run program providing wage replacement benefits to employees who need to take time off work to care for their family. Benefits can be used for taking care of a new child, or looking after a family member who has a serious illness.
Colorado FAMLI Program: How It Works and Who Is Eligible
Under this program, employers and employees will both contribute to a fund that will provide wage replacement benefits for eligible workers. Employers must pay at least half of the cost, with premiums set to less than 1% of the employee’s wage. Small employers with nine or fewer employees are only responsible for deducting and remitting the employee share to the FAMLI Division once a quarter.
Check out the Premium Calculator. CLICK HERE
Eligible workers can receive up to 12 weeks of payments on a sliding scale based on earnings, with lower wage earners receiving up to 90% of their wages.
Important Timeline for Employers
As a small business owner, it’s important to take the necessary steps to comply with this new law. By January 1, 2023 employers were required to notify their employees of the upcoming payroll deductions.
Premium deductions began in January.
If you haven’t done so, or are just starting a business and have employees, you need to register with FAMLI Division. Here’s a link to their registration page
0(0%). Employers must register before the first quarterly premium payment is due. Keep in mind you need to register by April 30th, 2023. On January 1, 2024, FAMLI Benefits become available to workers.
Self-employed workers and independent contractors can voluntarily participate in FAMLI by agreeing to pay premiums and report their wages for a three-year period. There’s no specific enrollment period for obtaining coverage.
After qualifying, you can file claims and access benefits as needed while paying premiums for the following three consecutive years. If you don’t want to participate, you don’t need to take any action to opt-out.
To provide paid family leave benefits, employers can opt for an approved private plan in the form of self-insurance or a policy acquired through an approved insurance carrier. An administration fee of $500 is required when submitting the application for private plan approval. Once the private plan is approved, employers will be liable to pay an annual maintenance fee. This will begin the first quarter of 2025.
Employees are a small business owner’s most valuable asset. Participating in the FAMLI Program provides support to their well-being when they need it most. Enroll today to establish a compassionate and supportive workplace.
Don’t wait until it’s too late – take action now to comply with this new law and support your employees’ well-being.Follow me on social media: