Colorado employers must update their FAMLI headcount by February 28

Headcount must be entered each year

The total employee headcount impacts an employer’s premium rate. If an employer has employees outside of Colorado, the headcount should reflect their total nationwide headcount to include those out-of-state employees. If an employer has 10 or more employees, they are liable for sending 0.9 percent of wages to the FAMLI Division every quarter. If an employer has nine or fewer employees, they are liable for 0.45 percent of wages.

This means that if an employer had nine or fewer employees for 2024, they MUST update their headcount for 2025 to continue paying the lower rate. The FAMLI Division won’t carry over an employer’s total headcount from the previous year.

Determining employee headcount

Employee headcount will be calculated by counting the number of employees nationwide that Colorado employers have on their payroll for 20 or more calendar workweeks in the preceding calendar year. Colorado employers will report their headcount during the initial registration process and once a year thereafter during the first quarter of each year.

Businesses that report having 10 or more employees who worked during 20 or more weeks during the previous full calendar year will be responsible for sending in the full 0.9 percent premium for all four quarters.

All employees who worked 20 or more weeks during the previous calendar year, even if they worked only one day a week, need to be counted toward the total headcount.

Employers are responsible for deducting and remitting premiums for every employee as soon as they are hired. This 20-week concept should only be used to determine whether or not the company is categorized as having 10 or more employees and thus responsible for sending in the full 0.9 percent premium once a quarter.

If the employer has more than 10 TOTAL employees — even if they work outside of Colorado — the employer is still responsible for sending in the full 0.9 percent premium once a quarter. Employers with employees based all over the U.S. need to use their total employee headcount to determine their premium responsibility for their Colorado-based employees.

What is FAMLI?

FAMLI benefits became available to employees on January 1, 2024. Covered Colorado employees may take up to 12 weeks of leave per year to:

• Bond with a new child, including adopted and fostered children.
• Care for themselves, if they have a serious health condition.
• Care for a family member’s serious health condition.
• Make arrangements for a family member’s military deployment.
• Address the immediate safety needs and impact of domestic violence and/or sexual assault.

Those who experience pregnancy or childbirth complications may receive an additional four weeks for a total of 16 weeks per year.

Both employers and employees contribute premiums to the program. Premium contributions began in January 2023.

Key to remember: Employers in Colorado or those with employees in Colorado will need to update their employee headcount between December 10 and February 28.