It took forever but I got it to work for the employee paychecks for both QB & QBO.

When it is asking for the share to be paid it is not the .45% tax. It is asking how do you want to split the total .9% so you enter 50/50.

I have clients with very small payrolls (1-12 checks) and had the same problem about having to assign it to each person. Followed Intuit’s instructions, had it showing in the list of taxes but was not deducting from the checks.

for QBO go to Payroll Setup and the screen where you change the SUI rate. You get a message to add CO FAML, follow the steps, enter 50/50, and give it a plan name for whatever makes sense to you such as CO FAML.

Then edit the employee and where you can change their W-4 into it will be available to assign to them and it shows on the paystub as a separate line after the normal SS/Med/Fed/CO. 

For desktop use New from the payroll item list and select custom setup for a new state tax. 
You assign it on the Other tab where CO SUI surcharge is. It pre-fills the show on W2 box but you have to enter .45% for the rate every time.

Employer side taxes are not working correctly in either one which is ok as nothing is filed or paid until April.

You have to go into each employee's file.  Choose payroll info, then click on Taxes.  Choose the OTHER tab and this is where you add both the employee and company FAMLI payroll items.  Choose the rate of .45% for employees and .45% for company (if you have 10 ore more employees).  I verified that the amounts were correct on my paycheck run and payroll summary report.

Hope this helps

Thanks for sharing some workarounds to resolve the Colorado Paid Family Leave rate hoofprints1d and Mophetmom.

If you want to know who is paying and filling your payroll taxes and forms, we can go to the Payroll settings to see the information. Here's how:

1. Click the Settings or Gear icon.
2. Select Payroll settings.
3. Go to the Taxes and forms section.
4. From there, you can review who is paying and filling.
5. Choose the Edit icon to make some changes.

You can visit these articles for additional information about Colorado Paid Family Leave tax: Colorado Paid Family Medical Leave Tax. Additionally, you may consider browsing through this reference on how to keep your payroll, finances, and whole business organized and compliant: 10 expert tips on how to stay payroll compliant. 

Keep me posted if you have additional questions about Colorado Paid Family Medical Leave Program by leaving a reply below. We'll be here to answer them. Take care and have a good one!

Quickbooks has the incorrect percentage listed in the download 1/12/23

Should be

.45 employer 

and

.45 employee

Who is payment made to?

Hi there, @krod2020. 

May I know what payment you’re referring to? How can I help you get back to business? Are you facing any issues right now? 

Please know that any information added will help me out. This way, I'll be able to share with you the best resolution I have.

I’m looking forward to your response. I'm always here to help. Take good care.

Payroll item list -

CO - paid fam med leave CO and EMP

"Enter name of agency to which liability is paid"

What name is used to pay this new tax?

Colorado FAMLI ?

Thanks for getting back, @krod2020.

I appreciate your effort to explain further your concern in setting up the payroll item list in QuickBooks Desktop (QBDT).

Regarding that, I want to ensure that the payroll item is mapped to the correct tax agency. In this case, it would be best to consult your Professional Tax Advisor for guidance with setting up Colorado Family and Medical Leave Insurance Program (FAMLI). This is to avoid discrepancies and ensure that the tax will be submitted to the appropriate agency.

If you have any QuickBooks-related concerns, please don’t hesitate to post them here. Have a good one!

This response is directly from the FAMLI website:

• Payee Name: Division of Family and Medical Leave Insurance
  • If this is too long, you may also enter “Colorado FAMLI”

It still does not specifically say, but their logo is part of the Department of Labor. 

Hope this helps. 

Thank you so much for posting this. This is how I just did it and it calculated correctly when I did payroll.

Glad I could help   

I've been with support three times with the case being escalated.  However, we are not able to process a correct payroll.  I've had to set it to 45% and 5% even though we have less than nine employees.  Has anyone been able to get this fixed through QBO support?

My exemption box is checked and I can't uncheck it for an employee. Why can't I uncheck the box?

Hi there, JSH79.

A possible browser issue might have prevented you from unchecking the tax to exempt the employee. 

Let me share some steps that can resolve common browser issues in QBO.

First, access your QBO account in a private or incognito window. You can also use other browsers if you have a different option on your computer. Use these keyboard shortcuts on how to start an incognito browsing session:

• Ctrl + Shift + N  for Google Chrome
• Ctrl + Shift + P for Firefox
• Control + Option +P if you're using Safari
• Ctrl + Shift + P for Microsoft Edge

Second, go back to the employee profile and check if you can uncheck the box. If you're able to do that, follow the steps in this article to delete your browsing history: Clear Cache And Cookies To Fix Issues When Using QuickBooks.

The Community is always here if you need anything else. 

Hello Jeff;

Have you been able to add the Colorado FAMLI tax to your payroll?  I've been working with QB for four months at it still is wrong. QB states the problem will be resolved by 3/31/2023; however, they said that about 12/31/2002 as well.  When I chat with QB support the representative never knows there is a problem. When I reference a case number, the person looks up the case and states there will be resolution on 3/31/2023. Are you able to withhold the tax on your payroll?

@jeff147 

When you did a QB update did it add two rows to your payroll item lists? I have attached a picture to show what should have been added when that update was done. Also the top part of that image is what needs to be added to each employee to start taking that tax out of their paycheck. I had to make up three weeks of it not taking it out, so I got on their website and used the payroll calculator to calculate that previous weeks that QB didn't take it out. This next week we will finally be on track. Let me know if you need more information.

Thank you, Jeff;

I cannot open the screenshot attachment.  Would you mind sending the email directly to [email address removed]?  I've never had someone respond to a post so I'm not sure if I'm allowed to ask you that.  If not, my apologies.

We use the Online version so there isn't an 'update' (to my knowledge) and I'm not sure what you mean by adding two rows.

I enter the settings (gear) mode and select"Payroll Settings". From there, I select the edit for "Colorado tax" and scroll down to "Colorado Paid Family and Medical Leave Tax (PFML)".  The 'policy description' is there; however, the rates are wrong. Our rates are 0% employer and .45% employee.  Quickbooks has 5% employer and 45% employee.  When I edit the tax and change the 5% in owner to 0%, it automatically increases the employee percentage to 50%.  I've tried changing it through the employee file as well and it does the same thing.

I've participated in multiple screen sharing with Quickbooks support but nothing has ever changed. One tech escalated the problem and a ticket was created. I've been told there will be a fix (100% guaranteed) on 3/31/2023 - except they said the same thing for 12/30/2022.  I haven't been able to withhold the tax from our employees payroll since the tax started on 1/01/2023.

It has been a nightmare.  I so appreciate your assistance.

Sincerely,

Kris [last name removed]

Hello;

Thank you for the response. I'm new to these message boards so I'm not sure if I am JSH79 or you're responding to someone else and I'm getting the copy.

We use QB Online.  The Colorado FAMLI tax is set up in our QB as 5% employer and 45% employee. We are less than nine employees so the rate is 0% employer and .45% employee.  When I change the 5% to zero, QB automatically increases the employee percentage to 50%.  I've tried editing the tax in payroll settings and in the individual employee profiles. It doesn't work either way.

In one of my sessions with QB chat, I cleared all cookies, cache, browser history, etc. for the two ISP we use - Google Chrome and Firefox.  Nothing happened.  I implemented the 'incognito' mode mentioned below and that didn't make a difference either.

I've had some many screen share sessions with QB that I've stopped counting. I do have a case open and have been told the problem with be 100% fixed on 3/31/2023 - the day before I have to pay the tax to the State.  The problem is that I was told the same thing for 12/31/2022 and that didn't happen either.

I haven't been able to withhold the tax from my employees which means it's accruing.

I am at a loss and am looking for other payroll vendors when I really just want this to work like it is supposed to. 

I appreciate your assistance.

Sincerely,

Kris Colton

Hi Kris - 

I am an accountant with several clients and what I've discovered is that in the payroll set up, qbo is asking for the % that the employees will pay out of the 100% possible.  You should enter 50% in the payroll settings.  

Then you must go in to each employee file and set up this withholding.  Go into the tax section and you'll see FAMLI at the bottom.  Choose assign policy and then you can choose the policy you created in the payroll set up.   I hope the screenshots help!  

Thank you for responding, Sandi.  If I change the employee percentage to 50%, won't that withhold 50% instead of the 45%?

Thankfully it doesn't.  QBO did not make this clear at all.  In the payroll settings, they're giving employers the chance to say they'll pay the entire .9% at 100% or they'll split it 50% to 50%, or some other breakdown.  In the case of 9 or fewer employees, they're looking for WHO is going to pay the 50% of the .9% due.  That's where you enter the 50% for employees.  When you go in to each employee and update the policy, it will then withhold the 50% of the .9% due (or .45%).

Oh my goodness. So I've been working with QB support for over two months and they don't know this?  Arg.  So, if I leave the default at 5% employer and 45% employee and assign each employee, the employees will pay the .45% and the employer nothing?  I cannot tell you how grateful I am for your assistance.

I'm not sure why it's defaulting to 5% and 45%, but it should be 50% to the employee and 0% to the employer.  They will deduct just the .45%, but QBO will know not to make a liability on the company side.  

Thank you, Sandi;

Your suggestion worked on one business I handle but not the second.  QBO states I am not supposed to be able to edit the payroll settings rate so they've locked that field altogether in my database and it is not available from the employee line item either.  I'll keep pushing them. If you are ever in Colorado, I owe you a big, big, dinner.  Thank you, again.

So glad it worked Kris.  At least for one.  That's very strange, because I set up about 12 client's this way with no problems.  I did not contact QBO though, so they couldn't lock me out. LOL  I'm in Colorado too, so it's nice to know we can help each other out!