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17832: CO - Paid Family Leave Program (DAS)


Colorado

Drake Accounting®: How do I set up the Colorado Paid Family Leave?  

 

The premiums for the Colorado Paid Family and Medical Leave are required to be calculated and remitted to the CO FAMLI Division starting on January 1, 2023. Per the CO government website:

"Employers and their employees are both responsible for funding the program and may split the cost 50/50. The premiums are set to 0.9% of the employee’s wage, with .45% paid by the employer and .45% paid by the employee. Employers may also elect to pay the full amount if they choose to offer this as an added perk for their employees. 

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Employers will start collecting FAMLI premiums for Paid Family and Medical Leave on January 1, 2023. The premium is 0.9% of each employee’s gross wages. Use the calculator to estimate your premiums. Premiums are capped at the Social Security Wage Base."

Employees will be able to claim benefits under the FAMLI program after January 1, 2024.

Summary of setup:

  1. Confirm the client’s state is CO.
  2. Set the appropriate CO rates for Family Leave Rate and Family Leave Wage Base.
  3. Set up the CO paid family leave as a deduction.
  4. Assign the CO deduction to employees.

Detailed setup steps:

  1. Confirm that the client’s state is CO in Client > Edit > Contact Information.
  2. Set the appropriate state rates and limits for CO on the State Setup tab under Firm > Rates & Withholding Setup.
  3. If you have not previously entered this information, these fields display the 0.00 default setting.
  4. Once you have entered the correct information for CO, click Save.

Set up the Paid Family Leave

Set up the Paid Family Leave deduction at Employees > Deductions & Benefits. Click on the Deductions tab and click New to add the PFL as a deduction.

  • Name – Enter the name of the deduction (such as "CO PFL").
  • Account – Necessary if you are using the Bookkeeping function.
  • Amount – Enter the same percentage as in the Family Leave Rate field on the Firm > Rates & Withholding Setup > State Setup.
  • Ceiling – Enter the max amount for the deduction.
  • Percent – Choose Percent in the Based on drop-list.
  • As appropriate, make selections in the Deduct After Tax and Exempt From sections.
    • Taxable settings must be determined by the preparer and the employer.
  • Apply to – check items as applicable. 
  • WH Code – Choose Family Leave Insurance Plan (Gross) or Family Leave Insurance Plan (FICA) in the drop-list.
  • Click Save to save changes.
  • Exit the screen if you are done adding deductions.

Assigning CO PFL to Employees

  • Assign the CO PFL deduction to employees on the Employees > Employee Setup > Deductions tab.
    • Complete this step for each employee.
  • Double-click or select the employee and click the Deductions tab. You will see the available deductions listed on the left column:
  • Click the CO PFL line item and click the blue arrow button to bring over the default deduction for the employee.
  • Verify the information is correct or edit as needed.
  • Click Save.

 


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