Setting up Colorado Paid Family Leave (COPFL)

Beginning January 1, 2023, all businesses located in Colorado with 10 or more employees are subject to Colorado Family and Medical Leave Insurance. Employers and their employees are both responsible for funding the program and may split the cost 50/50. The premiums are 0.9% of the employee's wage. Both the employee and employer are responsible for half, or 0.45%. 

Businesses with 9 or fewer employees don’t have to contribute. However, they do need to remit their employees' share (0.45%) on behalf of the employees each quarter.

There are two possible scenarios.

Scenario 1: Employer with 10 or more employees

Both employer and employee must contribute. Premiums are 0.9% of the employees' wage. Both the employee and employer pay a premium of 0.45%.

1. Create the Paid Family Leave payroll field in employee defaults by clicking Maintain, Default Information, Employees.
2. On the Employee Fields tab, on the first blank line enter PFL_EE in the Field Name column. Select a GL account and check the Calc box.
3. Select the COPFL EE formula from the formula drop-down box, be sure to click the adjust button to the right of the PFL EE line and ensure that Gross is checked in the Use column on the Employee Field Names table. Click OK to close the adjust window.
   • You also need to check any other items that are pre-tax
4. Create the Paid Family Leave payroll field for the employer by clicking the Company Fields tab in the employee defaults window.
5. Scroll to the first blank line and enter PFL_ER in the Field Name column, select GL accounts for both liability and expense and check the Calc box.
6. Select the COPFL ER formula from the formula drop-down box, be sure to click the adjust button to the right of the PFL ER line and ensure that Gross is checked in the Use column on the Employee Field Names table. Click OK to close the adjust window.
   • You also need to check any other items that are pre-tax

Scenario 2: Employer with 9 or fewer employees

Only the employee must contribute. 0.45% to be withheld and remitted by the employer from the employee wages.

1. Create the Paid Family Leave payroll field in employee defaults by clicking maintain, default information, employees.
2. On the Employee Fields tab, on the first blank line enter PFL_EE in the Field Name column. Select a GL account and check the Calc box.
3. Select the COPFL EE formula from the formula drop-down box, be sure to click the adjust button to the right of the PFL EE line. Check Gross in the Use column on the Employee Field Names table. Click OK to close the adjust window.