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Statutory Benefits Center

CO FAMLI Premium & Contributions

How Much Does Family & Medical Leave Insurance (FAMLI) Cost?

The cost (or premium) for Colorado & Medical Leave Insurance (FAMLI) is typically shared between the employer and employee (for employers with 10 and more employees). The actual cost depends on whether the employer obtains FAMLI coverage through the State Plan, self-funds, or purchases fully-insured coverage from a private insurance carrier – like ShelterPoint*.

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How Does The CO FAMLI Premium Work With The State Plan?

In 2023 and 2024, FAMLI premiums are set for the State Plan to 0.9% of the employee’s eligible wages up to the Social Security Wage Limit (which, in 2023, is $160,200).

  • In Colorado, the employer and employee may share the cost of FAMLI premium 50/50, this means 0.45% is paid by the employer and the other 0.45% paid by the employee.
  • Employers may choose to pay the total amount if they want to provide it to their employees as an additional benefit.
  • On the flipside, they cannot require their employees to fund more than half of the premium.
  • Employers with less than 10 employees will not be required to pay the employer portion of the premium but must forward their employees’ portion of the premiums to the State.

Starting 2025, the rate will be set annually by the FAMLI Division Director and, by statute, cannot exceed 1.2% of wages per employee.

 

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How Much May I Pay in Premium?

Premium Calculator
for the State Plan

How to determine CO FAMLI employer contributions

The total employee headcount determines the contribution level employers are responsible for. Total number of employees means the total number of individuals employed last year for 20 or more workweeks, regardless of how many hours/days they worked within each week.

 

9 or less total employees No employer contribution required

10+ total employees 0.45% full employer contribution required in 2023 and 2024

 

Counting employees


  • To determine the FAMLI employer contribution threshold, all employees need to be counted, including those working remotely and employees who do not work in CO.
  • Employees out on leave must be counted if they are expected to return to active employment.
Let’s look at some examples:

Total Employee Headcount Nationwide Employee Headcount Colorado Only # Employees to Cover ER Premium Required? Total Contribution Required (2023-2024) ER Premium Contribution EE Premium Contribution (2023-2024)
Company A 9 9 9 No 0.45% None 0.45%
Company B 25 4 4 Yes 0.90% 0.45% 0.45%
Company C 100 100 100 Yes 0.90% 0.45% 0.45%
Company D* 100 100 100 Yes 0.90% 0.90% 0.0%

*In this example, Company D has elected to contribute both the employer and employee portions of the premium.

  

How Does CO FAMLI Contributions Work For Fully-Insured Private Plans Like ShelterPoint?

Private Plan benefits must be equal to or more generous than the State Plan. Most importantly – the employee's maximum contribution must not be more than what they would pay to the State Fund.

Employers with approved private plans are exempt from remitting contributions to the State Fund for future quarters after approval and would instead remit premium to their chosen private plan carrier when due.

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Private plan considerations

Competitive pricing is not necessarily the only reason for choosing a fully-insured private plan. Experience and scalability can translate into fast turnaround times for claims processing and smooth service.

Learn more about fully-insured Private Plans and how to apply for one here .

CO FAMLI private plan 2023 premium refunds

Since contributions to the State Fund had to start January 1, 2023 and FAMLI benefits don’t begin until January 1, 2024, employers who choose private plan coverage and apply by October 31, 2023 may receive a refund on contributions already made earlier in the year – minus the private plan application administrative fee of $500.

Read more about advance premiums and premium refunds for the CO State Plan here .

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For example, if Company A applies for a private plan in August 2023 (with a January 1, 2024, effective date), Company A may receive a refund for contributions made from January 2023 through the approval date of their private plan (when contributions to the State Fund are no longer required).

CO employers can continue to apply for private plans after October 31, 2023, however, they are not eligible to receive the refund.

Learn More

CO FAMLI Premium Rates And Contributions FAQs

What are considered wages subject to CO FAMLI Premiums?

Wages subject to FAMLI premiums mirrors those that are included in the Unemployment definition of included wages. They are:

  • Payments defined as wages under the Federal Unemployment Tax Act (FUTA)
  • Tips
  • Employee contribution to 401(k) or IRC 408 simplified Retirement Plans
  • Disability payments paid in first 6 months after an employee worked for you
  • Employer contributions to a Medical Savings Account ○ Employee-matching contributions into IRC 219 simplified employee pension plan
  • Payments made by public school or 501(c) (3) into annuity contract or by governmental entity into deferred compensation plan because of a salary-reduction agreement
  • Payments for personal services, including anything other than cash that has cash value, like a housing allowance, (except payments to agricultural or domestic workers, which must be cash to be wages)
  • Employee contributions to a Salary Reduction Simplified Employee Pension Plan (SARSEP)
  • 125 Cafeteria Plan if cash is chosen

What are not considered wages subject to CO FAMLI Premiums?

The following are not considered wages and are exempt from FAMLI Premium calculations:

  • Payments for moving expenses if deduction is allowed in the federal Internal Revenue Code (IRC), IRC 127
  • Group Term Life Insurance
  • Employer contribution to 401(k) or IRC 408 simplified Retirement Plans, all PERA contributions
  • Amounts paid or incurred for a dependent care plan (IRC 129) or a educational assistance program (IRC 127)
  • Employee Contributions to a Medical Savings Account
  • Employer contributions into IRC 219 simplified employee pension plan
  • Payments into a deferred compensation plan if you are a government entity
  • Value of meals or lodging furnished by employer if such items are excluded from income as described in IRC 119
  • Employer contributions to a Salary Reduction Simplified Employee Pension Plan (SARSEP)
  • 125 Cafeteria Plan if qualified benefit chosen

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The information in this document is based on our knowledge of the CO Family & Medical Leave Insurance Act (CO FAMLI) and regulations, and may change as regulations evolve or the CO FAMLI Division issues guidance regarding the regulations. This material is for informational purposes only and is not intended to provide legal counsel. Please consult with an appropriate professional for legal and compliance advice. The information in this material is not intended as an offer of coverage. It is for illustrative purposes only, providing a general overview of the CO FAMLI program. It is not a contract. ShelterPoint Life policies are subject to Underwriting approval. Claim payment is not guaranteed; benefit amount depends on wages. All coverage extends up to policy limits. Policies are reviewed annually and may be cancelled for nonpayment. Please refer to the policy for terms under which it may be continued or cancelled, and for policy exclusions and limitations. In the event of conflicting information with the policy, the policy will take precedence over what is shown in this material. 

The ShelterPoint family of companies operates under the “ShelterPoint” name strictly as a marketing name, and no legal significance is expressed or implied. The ShelterPoint family of companies consists of ShelterPoint Life Insurance Company, a NY-domiciled carrier, and its wholly-owned subsidiary ShelterPoint Insurance Company, a FL-domiciled carrier, depending on the state. 

Available in Colorado only. Underwritten by: ShelterPoint Life Insurance Company (principal office in Garden City, NY) Policy Form # TBD


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