How to Set Up Your Business with the Colorado Family Leave Program (FAMLI)
As of January 1, 2023, Colorado requires most employers to participate in the Family and Medical Leave Insurance (FAMLI) program. This statewide, employer-and-employee-funded benefit provides paid leave starting January 1, 2024. For businesses operating in Colorado, understanding and setting up FAMLI correctly is essential for compliance and employee satisfaction.
In this guide, we’ll walk you through what FAMLI is, who it applies to, how to enroll and report, what recordkeeping is required, and how Brecken Business Solutions can assist every step of the way.
1. What Is the Colorado FAMLI Program?
Colorado’s FAMLI program provides up to 12 weeks of paid leave, plus an additional 4 weeks for pregnancy-related complications, for qualifying reasons. The benefit is funded by a joint premium paid by both employers and employees—currently set at 0.9% of gross wages, split evenly among employers with 10+ employees and fully by employees if the employer has fewer than 10 workers
Eligible purposes include:
One’s own serious health condition
Bonding after childbirth, adoption, or foster placement
Caring for a family member’s serious health condition
Obligations related to covered military service
2. Who Must Participate?
All private Colorado employers with two or more employees must register for FAMLI. Employers with 10+ employees must split the premium, while smaller employers can deduct the premiums fully from employee wages
Local governments may opt out, though employees can individually opt into the state program
3. How to Set Up FAMLI for Your Business
3.1 Register with My FAMLI+ Employer
Go to the My FAMLI+ Employer portal
Create a Login.gov account
Provide business info: legal name, FEIN, addresses, payroll size, and admin contact
Set up multi-factor authentication
3.2 Report Quarterly Wages & Remit Premiums
Quarterly wage reporting via the portal is required
Setup FAMLI as a payee in payroll software or bank with ACH details from the portal
Employers with 10+ employees pay 50%; smaller employers remit employee-only premium
3.3 Manage Users & Third-Party Administrators (TPAs)
After registration, set up additional users- Administrators, Editors, or Contributors for HR or payroll staff
If you work with a TPA, follow instructions to grant them access
3.4 Choose a Private Plan (If Applicable)
Employers can opt out if they offer a private plan with equivalent or superior benefits, and apply for exemption
4. Why FAMLI Compliance Matters
Avoid penalties: Non-compliance risks fines and audits
Support your employees: Paid leave boosts retention and morale
Professionalism & trust: Demonstrates a modern, caring employer
Competitive edge: Helps attract talent in a tight labor market
5. Q&A Section
Q: Do all Colorado employers need to contribute?
A: Employers with 10+ employees split the 0.9% premium 50/50. Smaller employers deduct 100% from employee wages Famli+12Axios+12Famli+12.
Q: Can I use a private-paid leave plan?
A: Yes, but your private plan must offer equal or greater benefits and be approved to opt out .
Q: How do I file quarterly wages and payments?
A: Use the My FAMLI+ Employer portal to report wages and remit premiums either via ACH or mailed check .
Q: When can employees take leave?
A: Starting Jan 1, 2024, eligible employees can access benefits after satisfying eligibility conditions .
Q: Can local governments opt out?
A: Yes, but Colorado employees can still individually opt into FAMLI. Coverage applies even if the local government opts out .
6. How Brecken Business Solutions Can Help
At Brecken Business Solutions, we offer expert guidance to simplify FAMLI setup and compliance:
Full portal registration and TPA setup
Payroll integration and quarterly filing assistance
Premium calculations and remittance support
Development or review of private plans for exemption
Employee communications and guidance
Our goal: keep your business compliant, save you admin time, and support employee well-being with ease.
9. Steps to Get Started Today
Contact us for a free FAMLI compliance audit.
Let us walk you through portal setup, payroll integration, and reporting.
Create a calendar for quarterly filings to avoid penalties.
Train your staff or grant portal access.
Launch internal communications to inform staff of the new benefit.
👉 Don’t wait! Ensure compliance and support your workforce. Contact Brecken Business Solutions to get established with FAMLI seamlessly.
By partnering with Brecken Business Solutions, you can confidently navigate FAMLI setup, fulfill your obligations, support your employees, and avoid compliance headaches. Let us take the complexity off your plate so you can focus on your core business.
