PEOs: Navigating FAMLI Compliance and Supporting Your Workforce

Colorado FAMLI Program: Supporting Workers and Families

In 2020, Colorado voters approved the groundbreaking Family and Medical Leave Insurance (FAMLI) program. This initiative ensures that Colorado workers no longer have to choose between earning a paycheck and taking care of their families during critical life events. Whether it’s bonding with a new child, addressing health conditions, or supporting family members, FAMLI has you covered.

Let’s delve into the details of FAMLI, explore eligibility criteria, discuss premium contributions, and highlight the crucial role of Professional Employer Organizations (PEOs) in supporting employers. Whether you’re an employee seeking information or an employer navigating FAMLI compliance, this blog post is your go-to resource.

Stay tuned for insights, tips, and actionable steps to make the most of Colorado’s FAMLI program!?

Colorado FAMLI Program Overview

What Is FAMLI?

In November 2020, Colorado voters approved Proposition 118, establishing the State-run Paid Family and Medical Leave Insurance (FAMLI) program. FAMLI ensures that all Colorado workers can access up to 12 weeks of paid leave to take care of themselves or their families during life circumstances that pull them away from work.

Eligibility and Benefits

Covered Colorado workers became eligible for FAMLI benefits on January 1, 2024.

Eligible employees may receive up to twelve weeks of leave per year for the following reasons:

• Bonding with a New Child: This includes time off for new parents, whether through birth, adoption, or fostering.
• Serious Health Conditions: Employees can use FAMLI to care for themselves if they have a serious health condition.
• Family Member’s Health Condition: FAMLI covers leave to care for a family member with a serious health condition.
• Military Deployment Arrangements: Employees can take leave to make arrangements for a family member’s military deployment.
• Domestic Violence and Sexual Assault: FAMLI addresses immediate safety needs related to domestic violence and sexual assault.
• Pregnancy and Childbirth Complications: Those experiencing complications during pregnancy or childbirth may receive an additional four weeks, totaling up to 16 weeks per year.

Premium Contributions

• Both employers and employees contribute premiums to the FAMLI program.
• Premium contributions began in January 2023.
• To estimate the cost of premiums and potential benefit payments, you can use the FAMLI Premiums & Benefits calculator.

How Third-Party Administrators (TPAs) Can Help

Third-party administrators (TPAs) play a crucial role in ensuring Colorado employers comply with FAMLI requirements. Here’s what TPAs need to know:

1. Registration and Deadlines:

All employers must register and create an account with My FAMLI+ Employer before the first premium payments are due (April 30, 2023).

A 30-day grace period is offered before late payments are considered.

TPAs can register on behalf of their employer clients.

TPAs should notify the employers they serve about their registration status.

2. TPA Registration:

TPAs need to register a TPA account before registering multiple clients.

Visit the My FAMLI+ Employer page for how-to guides on TPA registration.

3. Manual Employer Registration:

Employers can also manually register their business on My FAMLI+ Employer.

If a client registers independently, TPAs must link their TPA account to the employer account.

TPAs can do this manually or through bulk upload.

4. Bulk Registration and User Access:

After bulk registering clients, TPAs should add them as users to grant account access.

TPAs should advise clients registering independently to notify them for bulk upload completion.

The TPA-employer link must be established for wage submissions and payments.

5. Payroll Deductions:

Employers (and TPAs) need to facilitate payroll deductions from employees starting January 1, 2023.

Payroll deductions cannot be made retroactively.

By supporting employers through these steps, TPAs contribute to the success of Colorado’s FAMLI program and ensure workers have the support they need during critical life events.

Important points for TPAs supporting local government employers regarding FAMLI opt-outs:

1. Local Government Opt-Outs:

Local governments that have voted to opt-out should not be included in a TPA Bulk Registration file.

The system does not allow bulk opt-outs for multiple local governments simultaneously.

2. Attorneys or TPAs Representing Local Governments:

Attorneys or TPAs representing local governments should register as if they are the company administrator of the local government.

This allows them to opt-out on behalf of the local government.

3. Attorneys’ Registration Process:

Attorneys should follow the steps outlined in the My FAMLI+ Employer User Guide.

Start a new registration, acting as if they are the local government.

Select “No” when asked if they are registering on behalf of an organization.

This recognition ensures the account functions as their own, allowing them to upload the required opt-out letter.

4. TPAs and Individual Registration:

TPAs can individually register local governments from their dashboard.

When registering, select “No” for the question about registering on behalf of an organization.

This recognition ensures the business functions as its own, granting the ability to upload the opt-out letter.

Employers in Colorado can benefit from the FAMLI program in several ways:

1. Employee Retention and Satisfaction: Offering paid family and medical leave helps retain valuable employees. When workers know they won’t have to choose between their job and family needs, they’re more likely to stay with the company.
2. Attracting Top Talent: Competitive benefits, including FAMLI, make your organization more attractive to potential hires. Job seekers often consider work-life balance and family support when evaluating job offers.
3. Compliance and Avoiding Penalties: TPAs play a critical role in ensuring employers comply with FAMLI requirements. By registering and facilitating payroll deductions, employers avoid penalties and legal issues.
4. Positive Workplace Culture: Supporting employees during significant life events fosters a positive workplace culture. It shows that your organization values its workforce beyond just productivity.
5. Reduced Absenteeism Costs: When employees have access to paid leave, they’re more likely to take time off when needed. This can reduce absenteeism costs associated with burnout or stress-related illnesses.

Remember, TPAs can guide employers through the registration process and help establish a smooth FAMLI experience for both employees and the organization.?

How PEOs Can Help Businesses

Professional Employer Organizations (PEOs) offer valuable services to businesses, especially when navigating complex programs like Colorado’s Family and Medical Leave Insurance (FAMLI). Here’s how PEOs can make a difference:

1. Compliance and Administration:

PEOs ensure that employers comply with FAMLI requirements, including timely registration and premium payments.

They handle administrative tasks, allowing businesses to focus on their core operations.

2. Guidance and Expertise:

PEOs provide expert guidance on FAMLI implementation, helping employers understand their responsibilities.

They keep businesses informed about deadlines, opt-outs, and employee payroll deductions.

3. Employee Support:

PEOs assist employees during critical life events by ensuring they have access to FAMLI benefits.

This support fosters a positive workplace culture and enhances employee satisfaction.

4. Cost Savings:

By streamlining processes and managing compliance, PEOs help businesses avoid penalties and reduce administrative costs.

With over 600 PEO companies, how do you choose? As your dedicated PEO broker, we take a holistic approach to finding the right PEO partner for your business, helping you maximize your savings potential and avoid any undue risks.

Ready to optimize your worker's comp, and employee benefit plans and streamline your HR processes? Contact [email protected] today for personalized assistance or schedule a chat with us.

Visit PEOfortheCEO.com to learn more.