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New FAMLI Rules on Wage Definitions and Local Governments Take Effect on January 1, 2024

By Community Manager posted 09-07-2023 01:35 PM

  

On January 1, 2024, Colorado employees can begin receiving benefits under the Family and Medical Leave Insurance Program (FAMLI). Also at that time, the FAMLI program will change its definition of wages for benefits and premiums.  

The recently announced amended premiums rules try to make it simpler for employers and employees to calculate premiums by simplifying the definition of “wages.” Instead of using the same definition used for unemployment insurance, the term will now be defined as “gross wages.” The rule will become effective on January 1, 2024. At that time, employers will need to update their systems to account for the new definitions to properly deduct and remit premiums. 

Gross wages will include the following post-tax amounts: 

  • Salary 

  • Hourly wage 

  • Overtime 

  • Tips 

  • Bonuses 

  • Commissions 

  • Piece rate 

  • Employer-provided paid leave (PTO, sick, vacation, etc.) 

  • Disability benefits paid by the employer and not by a third party 

  • Parental leave paid by the employer and not by a third party 

  • The value of lodging or meals used as a credit toward the minimum wage 

Gross wages will not include the following: 

  • Severance payments 

  • Deferred compensation contributions or payments 

  • Profit-sharing 

  • Pensions or retirement plan payments 

  • Expense reimbursements (mileage, travel, moving, per diems, etc.) 

  • Non-monetary payments (except lodging or meals to the extent they’re used as a credit toward the minimum wage) 

Also beware, the amended premiums rules establish the fine for non-payment. Under the new rule, employers or individuals can be fined up to $50 per individual whose premiums were not timely paid. 

Local Governments 

Another rule that got an update in August pertains to local governments in Colorado. 

The updated rule, which also takes effect in January, allows local governments to vote to opt out in the way that they typically conduct similar business. The tweak aims to make FAMLI compliance easier for local governments. The rule also does the following: 

  • Clarifies local government notification requirements 

  • Removes the FAMLI Division’s obligation to provide certain local governments with a quarterly list of their employees who have opted in, information that is readily available without assistance from the Division 

If you have questions about what to count as “wages” for FAMLI purposes or on the local government rules, contact Employers Council at info@employerscouncil.org or the FAMLI Division at 1-866-263-2654. To learn more about the program, access our FAMLI Resources Community page with links to resources from Employers Council and the state.  

 


#Leaves-Mandated
#FAMLI
#Colorado
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https://members.employerscouncil.org/blogs/community-manager/2023/09/07/new-famli-rules-on-wage-definitions-and-local-gove

Comments

Carrie Walker
12-20-2024 11:03 AM

Thank you for this article.  I came here to find out if Employers Council happened to have a list of states and what they consider wages when taxing for Unemployment.