As most Colorado employers should know, and as was noted in an earlier blog post, Colorado’s Family and Medical Leave Insurance (“FAMLI”) law requires payroll withholdings. Those withholdings should have started on January 1, 2023.
Employers with more than nine employees must pay .45% of the employee’s wage, and the employee must pay .45% as well (for smaller employers, the employer contribution is not required). The premium payments are due on the last day of the quarter, but a 30-day grace period is built in. Therefore, the first premium payment was due no later than April 30, 2023.
To allow employers extra time to adjust, the FAMLI division recently extended the grace period by an additional 30 days, meaning the first payment is due by May 31, 2023, at the latest. That day is rapidly approaching.
Employers must also submit wage reports on the same timeline, and the failure to timely submit those reports can lead to the assessment of a fine of up to $50 per employee. If an employer is delinquent in filing reports or paying FAMLI premiums, the Division has the discretion to estimate the amount of chargeable wages and calculate premiums based on that. The Division can also issue a subpoena and inspect the employer’s books and records. Failure to pay premiums on time may also mean employers are on the hook for legal fees, fines, penalties, and/or interest.All Colorado businesses must immediately ensure that they are in compliance with FAMLI. Do not forget to make the first premium payment. FAMLI is a complicated law with many other requirements. If you have questions about any aspects of compliance, contact an employment attorney at Fortis right away.
