Colorado FAMLI for Employers: 0.88% Premium, Employer Share and the Fewer-Than-10 Rule
Colorado FAMLI for Employers: 0.88% Premium, Employer Share and the Fewer-Than-10 Rule
If you have employees in Colorado, the FAMLI premium is a payroll cost you have to build into every pay run. FAMLI, the Family and Medical Leave Insurance program, funds Colorado's paid family and medical leave benefits, and the premium is shared between employer and employee. For 2026 the total premium rate is 0.88 percent of wages. How much you personally owe depends largely on how many employees you have, and that is where most employers get confused. This guide covers the rate, the wage base, the 10-employee line, how premiums are remitted and what to confirm with the state before you rely on any number.
This is informational content, not legal or tax advice. Payroll obligations can be complicated, so talk with a qualified attorney or CPA before you change how you withhold or report FAMLI premiums.
What the FAMLI premium funds
FAMLI premiums fund Colorado's paid family and medical leave program. Eligible workers can use program benefits when they need time away from work for qualifying family and medical reasons. As the employer, your job is straightforward on paper: calculate the premium on each covered paycheck, withhold the employee's allowed share, pay the required amount to the state and keep clean records. The mechanics are where the mistakes happen, so the sections below walk through each piece.
The 2026 rate and how it is set
The rate has changed over time under C.R.S. 8-13.3-507, so do not assume a rate you saw in an old article still applies. The current structure works like this:
| Period | Total premium rate | Basis |
|---|---|---|
| 2023 and 2024 | 0.9 percent of wages | C.R.S. 8-13.3-507 |
| 2025 onward | Set each year by the FAMLI director, never above 1.2 percent | C.R.S. 8-13.3-507 |
| 2026 | 0.88 percent of wages | SB25-144 |
For 2026, the 0.88 percent total is typically split 0.44 percent paid by the employer and 0.44 percent paid by the employee. The director sets the rate for each year, so the rate for any year after 2026 must be confirmed with the FAMLI Division at famli.colorado.gov rather than carried forward from this page.
The wage base caps what you pay
Premiums apply only to wages up to the Social Security wage base. Under C.R.S. 8-13.3-507(6), that base is $184,500 for 2026. Any wages an employee earns above that amount do not generate FAMLI premium for the year. Because the base is tied to the Social Security figure, it changes over time. Confirm the base for each year before you set up payroll for it.
The 10-employee line: who pays what
The employer's obligation depends on whether you have 10 or more employees or fewer than 10. The rules are different, and the difference is the single most important point in this guide.
Employers with 10 or more employees may deduct up to 50 percent of the premium from employee pay, but they must remit 100 percent of the premium to the state. The employer absorbs whatever part of the premium it does not recover from employees. If you deduct the full 50 percent, your net cost is the other 50 percent.
Employers with fewer than 10 employees may deduct up to 50 percent of the premium from employee pay and remit only 50 percent. Because the employer does not owe a separate employer half, a small employer that deducts the maximum has no net premium cost of its own. The catch is that the small employer still has to remit the employee share. Fewer than 10 employees does not mean a business is exempt from FAMLI premiums, and it does not mean the premium disappears from your payroll. It means the premium you remit is the employee share, funded by the employee's deduction.
Two details matter here. First, the word "may" controls the deduction. If you choose to deduct less than the maximum, or nothing at all, the difference is your cost. Second, the deduction limit is 50 percent of the premium, not 50 percent of wages. Those two numbers are easy to confuse on a payroll sheet.
Counting employees also deserves care. The FAMLI Division sets how employees are counted for this line, including how part-time, seasonal and remote workers are treated. Check with the FAMLI Division before you decide which side of the line you are on, because the answer changes your remittance amount.
Worked examples
The examples below use the 2026 total rate of 0.88 percent and the $184,500 wage base for a single employee. They are illustrations of the arithmetic, not a substitute for confirming your own payroll setup with the FAMLI Division.
| Scenario | Total premium | Amount remitted | Maximum deduction from pay | Employer cost after maximum deduction |
|---|---|---|---|---|
| $60,000 wages, 10 or more employees | $528.00 | $528.00 | $264.00 | $264.00 |
| $60,000 wages, fewer than 10 employees | $528.00 | $264.00 | $264.00 | $0.00 |
| $250,000 wages, 10 or more employees | $1,623.60 | $1,623.60 | $811.80 | $811.80 |
| $250,000 wages, fewer than 10 employees | $1,623.60 | $811.80 | $811.80 | $0.00 |
The $250,000 example shows the wage base at work. Premium is calculated on the first $184,500 of wages only, which is $1,623.60 at 0.88 percent. The remaining $65,500 generates no FAMLI premium for the year. The employer's cost in each row assumes the maximum deduction is taken. Every dollar you choose not to deduct becomes an employer cost.
Remitting through My FAMLI+ Employer
FAMLI premiums are remitted quarterly through My FAMLI+ Employer, the state's employer portal. The practical sequence for a new employer looks like this:
- Register your business in My FAMLI+ Employer at famli.colorado.gov before your first covered payroll.
- Set up payroll so each covered paycheck calculates the total premium, the allowed employee deduction and the amount you owe.
- Track each employee's year-to-date wages so the premium stops when wages pass the wage base.
- Remit the quarterly premium through the portal. Check the program for current due dates rather than relying on a date you saw elsewhere.
Forming your LLC or corporation with the Colorado Secretary of State does not by itself set up FAMLI reporting. You register with FAMLI separately once you have employees. The Secretary of State's business information is at coloradosos.gov, and the two systems do not share a login or a filing.
Approved private plans
Employers that hold an approved private plan do not remit premiums to the state fund. A private plan is an alternative to the state program, and it has to be approved before you stop remitting to the state. Do not assume your existing insurance qualifies. Confirm the approval requirements and the approval status with the FAMLI Division, and keep paying the state until approval is in writing.
What covered employees can claim
FAMLI benefits provide up to 12 weeks of leave in a benefit year, with additional weeks available for pregnancy or childbirth complications. Eligibility, the benefit calculation and the claim process are set by the program, so review the current rules at famli.colorado.gov before you explain benefits to your staff. Your employees will ask about this, and an accurate answer protects you from giving advice the program does not support.
Confirm these with the state
Several parts of this topic depend on current program rules, and you should confirm each of them directly with the agency before you rely on the answer:
- Employee counting for the 10-employee line. Check with the FAMLI Division on how part-time, seasonal and remote workers are counted.
- Premium rate and employer split for any year after 2026. Check with the FAMLI Division, because the director sets the rate each year.
- The wage base for each year. Check with the FAMLI Division, because the base is tied to the Social Security figure and changes over time.
- Quarterly due dates in My FAMLI+ Employer. Check with the FAMLI Division before you calendar a remittance.
- Private plan approval. Check with the FAMLI Division before you stop remitting to the state fund.
Employer checklist
- Count your employees using the method the FAMLI Division confirms, and note which side of the 10-employee line you fall on.
- Confirm the total rate, the employer and employee split and the wage base for the current year.
- Register in My FAMLI+ Employer before your first covered payroll.
- Build the premium calculation into payroll software or your payroll provider's setup.
- Write down your deduction policy and tell employees how the premium appears on their pay stubs.
- Track wages against the wage base for each employee, especially higher earners.
- Remit quarterly on the due dates the program confirms.
- Review the rate, base and counting method each year, because all three can change.
Where to get help
The FAMLI Division is the authority on rates, due dates, employee counting and private plan approval, and its website at famli.colorado.gov is the place to start. For general business questions, the Colorado Small Business Development Center Network offers free and low-cost advising at sbdc.colorado.gov. If your payroll includes multiple states, high earners, contractor relationships or a mix of employees and owners, a CPA or payroll professional can help you set up the calculations correctly.
Reminder: this guide is informational only and is not legal or tax advice. Rates, wage bases, due dates and program rules are set by the state and can change, so confirm current figures with the agencies named above before you act on them.