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Set up Colorado Family and Medical Leave Insurance Program (FAMLI)

SOLVED•by QuickBooks•214•Updated January 26, 2024

Learn how to set up QuickBooks Payroll to track paid family and medical leave in Colorado.

Colorado has implemented paid family medical leave, called Family and Medical Leave Insurance Program (FAMLI). The program gives employees paid time off to care for themselves, ill family members, or a new child. 

All Colorado employers are required to collect premiums effective January 1, 2023.  

Find out more about Colorado FAMLI.  

How the Colorado FAMLI program works

  • The total contribution rate is 0.9% and is paid on the first $160,200 in wages. 
  • Your employees pay 0.45% (or 50% of the 0.9%). Your business may choose to pay some or all of the employee portion as a benefit to your employees.
  • If you have 10 or more employees, your business pays 0.45%. If you have 9 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, we pay and report 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. 

Add Colorado FAMLI to your employees

Select your product below.

Note: Not sure which payroll service you have? Here's how to find your payroll service.

Step 1: Add your policy

  1. Go to Settings ⚙, and select Payroll settings.
  2. From Colorado tax, select Edit ✎.
  3. Select Create Policy.
  4. Under Colorado Paid Family and Medical Leave Tax (PFML), select Start.
  5. Enter the number of employees used to determine your rate.
  6. Enter your CO FAMLI Agency ID.
  7. Select Define Rates.
  8. Enter your Policy Name.
  9. Select the effective start date of the policy. 
  10. Enter the percentages for you and your employees. For example: if you want to pay 50% of your employee’s 0.45% portion (you pay 0.225% and your employee pays 0.225%), enter 25 in the employer box. 25 will automatically add to the employee box.
  11. Select Save.
  12. If you want to add another policy, select + Create contribution rates.
  13. Select Save, then Done.

Step 2: Add the policy to your employees

  1. Go to Payroll, then Employees.
  2. Select your employee.
  3. From Tax withholding, select Edit.
  4. From State withholding, select + Assign policy.
  5. Select the policy name you set up in Step 1.
  6. Select Save, then Done.
  7. Repeat steps 2-6 for all other Colorado employees.

If you’ve run any payrolls before setting up this rate, don’t worry. We’ll automatically catch you up when you run your next payroll.

Step 1: Get the latest payroll update 

Download and install the latest payroll update. The Add Item Wizard for the new Colorado FAMLI Company and Employee items will launch when you pay your employees, or if you add any new Colorado employees.  

Important: You may see a message asking if the CO FAMLI rate is part of the UI rate. Select No. 

Edit, remove, or delete Colorado FAMLI

Edit your policy

  1. Go to Settings ⚙, and select Payroll settings.
  2. From Colorado tax, select Edit ✎.
  3. Under Colorado Paid Family and Medical Leave Tax (PFML), select Edit next to the policy you want to edit. 
  4. Edit the rate, then select Save.
  5. Select Save, then Done.

Remove policy from your employee

  1. Go to Payroll, then Employees.
  2. Select your employee.
  3. From Tax withholding, select Edit.
  4. From State withholding, look for the policy then select Unassign.
  5. Select Unassign to confirm action.

Change your employee or company percentage

  1. Go to Employees, and select Employee Center.
  2. Double-click your employee.
  3. Select Payroll Info.
  4. Select Taxes, then select the Other tab.
  5. Select the CO - Paid Fam Med Leave Co. In Co. Portion Rate, enter your employer rate with a decimal if applicable. For example: 0.45% CO company PMFL_PRDT_US_Ext_041423.jpg
  6. Select CO - Paid Fam Med Leave Emp. In Emp. Portion Rate, enter your employee rate with a decimal. For example: if you want to pay 50% of your employee’s 0.45% portion (you pay 0.225% and your employee pays 0.225%), enter 0.25%. CO employee PMFL_PRDT_Ext_042123.jpg
  7. Select OK twice, then then Save & Close.
  8. Repeat steps 2 - 7 for each covered employee.

Edit your Colorado FAMLI account number

  1. Go to Lists, then select Payroll Item List.
  2. Double-click the CO - Paid Fam Med Leave Co item.
  3. Select Next until you get to the Agency for company-paid liability screen.  
  4. Enter or edit your Colorado FAMLI account number. 
  5. Select Next.
  6. Verify your rate.
  7. Select Next, then select Finish.
  8. Repeat steps 2 - 7 for the CO - Paid Fam Med Leave Emp. item.

Delete Colorado FAMLI policy

  1. Go to Employees, and select Employee Center.
  2. Double-click your employee.
  3. Select Payroll Info. 
  4. Select Taxes, then Other.
  5. Select CO Paid Fam Med Leave Emp., then Delete.
  6. Select CO Paid Fam Med Leave Co., then Delete.
  7. Select OK, then Save & Close.

Exempt employees from Colorado FAMLI

  1. Go to Payroll, then Employees.
  2. Select your employee.
  3. From Tax withholding, select Edit.
  4. From State withholding, under Colorado Paid Family and Medical Leave, select [Employee] is exempt from this contribution.
  5. Select Save.

If you use QuickBooks Desktop Payroll Assisted: contact us to remove Colorado FAMLI.

If you use QuickBooks Desktop Payroll Basic, Standard, or Enhanced:

  1. Go to Employees, and select Employee Center.
  2. Double-click your employee.
  3. Select Payroll Info. 
  4. Select Taxes, then Other.
  5. Select CO - Paid Fam Med Leave Emp., then Delete.
  6. Select CO - Paid Fam Med Leave Co., then Delete.
  7. Select OK, then Save & Close.

If you’ve created paychecks before exempting your employee:

  1.  Create a liability adjustment to correct QuickBooks Desktop. 
  2. Create a reimbursement item and add it to your employee’s next paycheck.

Frequently asked questions

  • All employees, no matter where that employee works, are used to determine the employer’s account. 
  • Employers only need to pay premiums for employees who work in Colorado.
  • For 2023, the CO FAMLLI agency will determine the size of all employers by reviewing the number of employees reported for the first calendar quarter on UI reports. 
  • Employers that report ten or more employees will be required to pay the employer share of the premium for all calendar quarters in the calendar year 2023.

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