If you live or work in CO, this will go into effect on January 1st. 2023. If you do not live in CO, please check with us to see if your state has a similar program. Currently, there are 11 states with a similar requirement.
In November of 2020 Voters passed the FAMILI. This will start on January 1st, 2023. These effects all employees in CO including those who are self-employed or are independent contractors. This provides paid family leave and works similar to Unemployment insurance.
Employers will need to register. If you have 9 employees or fewer the employer will not pay a premium but is still required to register and withhold .45% of wages from employees’ wages. If you have 10 or more employees, then the premium is 0.45% of wages paid by both the employer and employee. Self-employed individuals can opt-in and pay the 0.45% as if they were an employee. Employers can opt to cover all or some of the .45% of the employee portion as a benefit for the employee
Although the premium payments will start on January 1st of 2023. Employees will not be able to take advantage of leave until January 1st, 2024. This will work like unemployment in that the employer must apply to the program to have leave approved not to their employer. The employer will be informed by the state when that leave is approved