Colorado workers to see 0.45% deduction on paychecks in 2023 for family leave policy

Molly Bohannon, Fort Collins Coloradoan
·4 min read

If you notice a new 0.45% deduction on your paychecks starting in the new year, it’s not a mistake. It's a new state premium.

Starting Jan. 1, most Colorado workers will see the deduction on their paychecks that covers their contribution to the state’s new voter-approved Paid Family and Medical Leave Insurance Program, or FAMLI. The program is starting as the result of a 2020 ballot initiative, which passed with 57% of the vote.

It's designed to guarantee that workers in Colorado "have access to paid leave in order to take care of themselves or their family during life circumstances that pull them away from their job," according to the state.

Benefits will begin Jan. 1, 2024, but employees and employers will start paying for the program in the new year. Employers and employees will split funding the program; premiums are set to 0.9% of an employee’s wage, so 0.45% will be paid by the employee and the other half by the business.

The new program differs from the federal Family and Medical Leave Act, FMLA, in that the state's program is paid leave and it applies to more workers, including employees working for smaller businesses and self-employed workers who aren't eligible for FMLA.

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Businesses with nine or fewer employees do not have to contribute, but they do need to pay the employee’s contribution quarterly, which the state said can be done through a pay reduction and paid quarterly.

People will be able to apply for the benefits — up to 12 weeks of paid leave if you or a family member has a qualifying health issue — beginning in 2024. The leave can be used for people to:

  • Care for a new child, including adopted and fostered children

  • Care for themselves, if they have a serious health condition

  • Care for a family member’s serious health condition

  • Make arrangements for a family member’s military deployment

  • Address the immediate safety needs and impact of domestic violence and/or sexual assault.

Local governments, self-employed people and employers with approved private plans can all opt out of the program. The city of Fort Collins, for example, decided in November to opt out of the program, acknowledging that its own leave benefits differ but include “the continuation of pay for circumstances covered under FAMLI.”

But, if a city employee wants to, they could opt in even if their employer isn't and pay their portion of the premium without administrative assistance from the city, according to city documents, and would have to participate for three years.

Employers that opt out of the program can reevaluate their decision and choose to join the program at a future date.

So, how much will your deduction be?

Contributions are based on pay and split equally between you and your employer. The state has created a calculator for people to determine what their contributions, and benefits if needed, will be based on their salaries.

According to the state, FAMLI will pay people up to 90% of their wages "based on a sliding scale and proportional to Colorado's average weekly wage." However, benefits are capped at $1,100 per week.

If you have an annual income of $40,000, the weekly contribution from both you and your employer would be $3.46, equating to a total annual contribution of $179.92 each, according to the calculator. If you needed to take leave, you would be estimated to get around $654.73 a week from the state.

If you have an annual income of $75,000, your and your employer’s weekly contribution would each be $6.49, totaling an annual contribution of $337.48 each. If you took leave, your estimated weekly pay would be $991.26.

Part-time and hourly workers will also contribute, and the calculator allows you to determine contribution rates in those jobs, as well.

If you make $15 an hour and work 40 hours a week 50 weeks a year, your and your employer’s weekly contribution would be $2.70 and the total contribution would be $135 each. If you needed to take leave, you would receive around $540 weekly.

You can access the state’s contribution calculator at https://co.accessgov.com/famli/Forms/Page/famli/famlicalculator.

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This article originally appeared on Fort Collins Coloradoan: Colorado workers will see a 0.45% deduction on paychecks in 2023