Colorado Family and Medical Leave Insurance

The Colorado Family and Medical Leave (FAMLI) is the state’s implementation of family medical leave insurance (FMLI). It provides paid leave to all Colorado workers. It is funded 50% by the employer and 50% by the employee.

This tax consists of these components.

• Family Leave Insurance Employee

• Family Leave Insurance Employer

Before you implement Colorado FMLI, there are some areas you need to consider.

• What are the employee eligibility criteria

• How to override the tax rate

• How to opt out your organization

• How to exclude individual employees

• How to cost Paid Family and Medical Leave taxes

• What wage basis rules it follows

What are the employee eligibility criteria

To be eligible for the Colorado FLI tax, an employee must have:

1. Valid tax card with a tax reporting unit (TRU) association

2. Colorado identified as one of the following.

   • Family leave insurance (FLI) state on the person's Tax Jurisdictions card

   • State unemployment insurance (SUI) state on their Tax Withholding card (if FLI state is undefined)

How to override the legislative rates and percentages

To override the legislative tax rates and percentage distribution between employee and employer components:

1. To change this tax at the payroll statutory unit (PSU) level, start the Legal Entity Calculation Cards task from your implementation project.

   Use the Legal Reporting Unit Calculation Cards task to change this tax at the TRU level.

   Settings at the TRU level override those at the PSU level.

2. Open the calculation card for editing.

3. In Component Groups, select the Colorado state regional node.

   Create it if it doesn't exist.

4. In Calculation Components, select State FLI.

   Create it if it doesn't exist.

5. Click Enterable Calculation Values on the Calculation Card.

6. Add the FLI Combined Rate, and set the appropriate value.

   You can also override these values.

   • FLI Employee Percentage

   • FLI Employer Percentage

   • Family Leave Insurance Wage Limit

7. Save your work.

How to opt out your organization

There are cases where you want to exempt an organization from this tax. For further info, see the Colorado state tax authority website.

To opt out an organization:

1. To opt out at the PSU level, start the Legal Entity Calculation Cards task from your implementation project.

   To opt out at the TRU level, start the Legal Reporting Unit Calculation Cards task.

2. Open the calculation card for editing.

3. In Component Groups, choose the Colorado state regional node.

4. In Calculation Components, choose State FLI.

   Create it if it doesn't exist.

5. Select Enterable Calculation Values on the Calculation Card.

6. Click Create.

7. Search for and select the appropriate calculation value.

   • FLI employee tax exemption

   • FLI employer tax exemption

8. In Value, select the appropriate exemption status.

9. Save your work.

Exclude Individual Employees

To exclude an individual employee from this tax:

1. Use the Calculation Entries task to open the person's Tax Withholding card editing.

2. Open the Colorado component for editing.

3. In Withholding Exemption, select the appropriate exemption for Family Leave.

4. Save your work.

How to cost the tax

To process FLI taxes, cost the following predefined elements using the FLI Tax Calculated or Tax Calculated input value.

• Family Leave Insurance Employee Tax

• Family Leave Insurance Employee Tax Not Taken

• Family Leave Insurance Employer

What wage basis rules it follows

When configuring the wage basis rules for Colorado FMLI, find them under State FLI in the Component Group Rules task.