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As companies continue to navigate the impact from COVID on their employees and their businesses, one area that has had the biggest impact and review is employee leave.
Beginning on January 1, 2023, the State of Colorado will roll out a Family and Medical Leave Insurance (FAMLI) Program that will be funded from taxes deducted from employee paychecks. This program will ensure that all Colorado workers have access to paid leave to take care of their own health or a family member with a health issue.
The total tax is 0.9% of an employee’s wage, with .45% paid by the employee and .45% paid by the employer. These deductions are slated to begin with the first payroll paid in 2023.
Colorado employees will be able to apply for FAMLI leave in the last quarter of 2023 with benefits beginning on January 1, 2024.
Employers will need to:
- Register their businesses with the Colorado Department of Labor and Employment.
- Work with their payroll vendors to ensure that this tax deduction is set up for employees that work in Colorado.
To learn more about the FAMLI program and for required posters and notifications please visit: https://famli.colorado.gov/