It's time for employers to start preparing for the upcoming January 2023 FAMLI Program.
What is Colorado Proposition 118?
Approved by voters in 2020, Prop 118 establishes a statewide Family and Medical Leave Insurance Program (FAMLI) providing benefits starting in 2024. The program will provide all Coloradans with family and medical leave benefits.
How does it affect employers?
Deductions for the FAMLI program begin January 1 2023. Both the employer and employee contribute to the program through payroll deductions. The deduction amounts to 0.9% of an employees gross income capped at the Social Security wage base. The employer and employee will split the contribution paying 0.45% each. However, an employer may elect to cover the full amount as an additional benefit to its employees.
Companies with 9 or less employees are not required to contribute to the plan BUT the employee is still required to contribute their 0.45% share and the employer is responsible for remitting this deduction quarterly.
Employers may elect to provide their own leave programs and apply for an exemption but all private plans must be approved by the FAMLI program. More information on private plans will be coming from the program.
For more information on Colorado Proposition 118 and requirements, visit the Colorado FAMLI website here .