The Family and Medical Leave Insurance (FAMLI) program allows Colorado workers to take paid time off for important life events that impact the health and safety of their family, or themselves. This paid leave is jointly-funded by contributions from employer and employee taxes, with some exemptions for the employer portions only.
What you need to know
- All company employees pay into this program through withheld taxes, regardless of company size or headcount
- Employers with fewer than ten employees are exempt from the employer contribution, only
- Employers can choose to cover a portion of employee contributions, up to 100%
Where to find FAMLI settings in OnPay
Go to Company, then Payroll Taxes.
Do you pay employees in multiple states?
If so, select Colorado under "Payroll Taxes".
Scroll down to "Colorado State Family Leave and Medical Insurance Setup", and enter your FAMLI account ID. If you haven't already done so, you'll need to register for a FAMLI Account online to receive your FAMLI ID.
Indicating "Employer Exempt"
There's no exemption for the employee portion of this tax, regardless of company size. However, employers with 9 or fewer employees are exempt from paying the employer portion of this tax.
If you employ fewer than 10 employees, you may check the box for "Employer Exempt". OnPay will still draft and pay the employee portion of this tax.
How OnPay handles FAMLI calculations and payments for exempt employers
When an employer is marked "exempt" for FAMLI contributions, OnPay takes the following actions during each pay run:
- Calculate and withhold employee contributions from wages (unless 100% covered by the employer)
- File and remit employee tax contributions to the state, reporting the employer as exempt
Covering a portion of employee contributions
Employers may choose to lessen the tax burden for their employees by covering a portion of employee contributions toward this tax, up to 100%. Employers who choose to cover a portion of the employee contribution must cover it for all employees equally.
How OnPay handles FAMLI calculations and payments when a portion of employee contributions are covered by the employer
When an employer elects to cover a portion of employee FAMLI contributions, OnPay takes the following actions during each pay run:
- Calculate the employer FAMLI contribution amount (unless marked exempt)
- Calculate employee FAMLI contribution amounts
- Reduce employee FAMLI contribution withholdings by the rate entered as the "Portion of Employee Contribution Covered by Employer" (up to 100%)
- Increase the employer FAMLI contribution amount by the total amount of all employer-covered portions
- Withhold remaining employee contribution amounts from wages (unless 100% covered by the employer)
- Draft combined employer and employee tax contribution amounts from company bank account
- File and pay combined employer and employee tax contribution amounts to the state
Covering a percentage of employee FAMLI contributions
Use the Update button to enter the percent of the total amount of employee contributions you want to cover. By default, this field is marked 0%, meaning you're covering 0% of the total amount of employee contributions.
Enter the first day you want to begin covering this portion of employee contributions. Then, enter the rate of coverage (the percentage of each employee's contribution you want to cover). You can cover as much of employee contributions as you want, up to 100%.
You can enter an exact percent, or fraction of a percent, by including a decimal point in your entry (up to seven places, or ten-millionths).
Once you've entered the effective date, and percent of employee contributions you'd like to cover, click Save.
v7.24
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