Set Up the Colorado FAMLI on the Manage Deductions Screen in 2023

Configure the Colorado Paid Family and Medical Leave Insurance (FAMLI) on the Manage Deductions screen.

Warning: This setup is not recommended if there are deductions to be excluded from FAMLI wages.

To set up the Colorado FAMLI deduction:

1. On the Manage Deductions screen, add a Deduction Code to represent the Colorado FAMLI deduction/contribution.
2. Select a Deduction Type of COPFML.
3. In the Deduction section on the Details tab, enter the following, and then set other deduction values as needed:
   • Computation Method: PCTGRS
   • Rate%: 0.45%

     You may choose to cover any amount of the employee's portion of the premium. The most an employer can deduct from an employee is 0.45% of their wages, but the employer can choose to only deduct 0.1% or 0.2% or deduct nothing at all.

   • Ceiling Method: Payroll Year
   • Ceiling Amount: 720.90

     Colorado regulations state the amount of wages subject to a premium assessment is capped at the maximum wages subject to social security tax. In 2023, the social security wage limit is 160,200.00. The Ceiling Amount must be manually calculated and entered each year, based on the following formula: SS Wage Limit x Deduction Rate %. In 2023, this is 160,200.00 x 0.45%, which results in a Ceiling Amount of 720.90.

   • If you need to exclude certain pay types from FAMLI wages, then you must enter Modify Code to either add or subtract pay types.

     On the Manage Deduction Modify Codes screen, you can set up any pay types that should not be used to calculate the Colorado FAMLI deduction amount.

     

     Note: You must add the same modify code in the Contribution section.
4. In the Contribution section on the Details tab, enter the following, and then set other contribution values as needed:
   • Computation Method: PCTGRS
   • Rate%: 0.45%

     You may choose to cover any amount of the employee's portion of the premium. The most an employer can deduct from an employee is 0.45% of their wages, but the employer can choose to only deduct 0.1% or 0.2% or deduct nothing at all.

   • Ceiling Method: Payroll Year
   • Ceiling Amount: 720.90

     Colorado regulations state the amount of wages subject to a premium assessment is capped at the maximum wages subject to social security tax. In 2023, the social security wage limit is 160,200.00. The Ceiling Amount must be manually calculated and entered each year, based on the following formula: SS Wage Limit x Deduction Rate %. In 2023, this is 160,200.00 x 0.45%, which results in a Ceiling Amount of 720.90.

   • If you need to exclude certain pay types from FAMLI wages, then you must enter the same Modify Code used in the Deductions section.
5. On the Federal tab, enter the W2 Box 14 Usage line number and set the Box 14 Description to FAMLI.
6. Assign the Deduction Code to employees on the Manage Employee Deductions screen and/or the Manage Employer Contributions screen.

   Here is an example of the employee deductions and employer contributions setup on the Manage Deductions screen.