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

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.  

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%
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%.
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.

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.

• All employees nationwide, 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 nationwide will be required to pay the employer share of the premium for all calendar quarters in the calendar year 2023.