Setting up Colorado Paid Family Leave (COPFL)

Beginning on January 1, 2023 all businesses located in the state of Colorado with 10 or more employees are subject to Colorado Family and Medical Leave Insurance Program (denoted hereto as paid family leave). 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 employees's wage, with 0.45% paid by the employer and 0.45% paid by the employee. Businesses with 9 or fewer employees do not have to contribute to the program but do need to remit their employees' share (0.45%) of the premium 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 set to 0.9% of the employees wage, with 0.45% paid by the employer and 0.45% paid by the employee.

1. Create the Paid Family Leave payroll field in employee defaults by clicking on 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.
   • Note: Need to also check any other items that may be pre-tax
4. Create the Paid Family Leave payroll field for the employer by clicking on 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 liabitiy and expense and check the Calc box.
6. Select the COPFL ER formula form 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.
   • Note: Need to also check any other items that may be 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 on 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.