Question

Will QB have the Colorado Family and Medical Leave Insurance payroll deduction available Jan 1, 2023?

Forum|Forum|3 years ago
December 6, 2022
17 replies
0 views

Employers are required to deduct 0.45% from employees and pay 0.45% out of pocket for this new program. How can we do this through QB payroll?

QuickBooks Online

Q

QueenC

I appreciate you for bringing this concern to the Community, @jeff147.

I've got some additional information for you.

As you've heard, yes, Colorado Paid Family Medical Leave Program will be effective on January 1, 2023. In preparation for the start date of January 1, QuickBooks is actively researching and adding these new tax items.

You can visit these articles for additional information about Colorado Paid Family Leave tax:

Pertaining to your question as to how to set this up, it isn't available as of now. Detailed articles on these new taxes, including instructions for setting this up in QuickBooks Online Payroll, will be rolled out once available.

Additionally, you may consider browsing through this reference on how to keep your payroll, finances, and whole business organized and compliant: 10 expert tips on how to stay payroll compliant.

If you have any other questions regarding payroll and taxes, please let me know. I'm looking forward to hearing back from you. Keep safe!

J

jeff147Author

Thanks for the feedback. Hopefully they will get it figured out in the next couple weeks so we can comply with the new law. Will it be done automatically or will QB tell us how to enable it once available?

K

KCADC

Hello Jeff;

Have you been able to add the Colorado FAMLI tax to your payroll? I've been working with QB for four months at it still is wrong. QB states the problem will be resolved by 3/31/2023; however, they said that about 12/31/2002 as well. When I chat with QB support the representative never knows there is a problem. When I reference a case number, the person looks up the case and states there will be resolution on 3/31/2023. Are you able to withhold the tax on your payroll?

JaeAnnC

Thanks for your response, @jeff147. I'm here to provide an update on Colorado's new Paid Family Leave program, which will implement in 2023.

This December, we will follow up with your company with in-depth articles about the Colorado Paid Family and Medical Leave insurance, along with guidelines on how to set it up.

Moreover, I'll be leaving you this article to ensure your business complies with payroll laws: Payroll laws and regulations. It also contains pointers you can practice in your workplace to help you stay on top of all the payroll regulations relevant to your state and industry.

Keep me posted if you have additional questions about Colorado Paid Family Medical Leave Program by leaving a reply below. We'll be here to answer them. Take care and have a good one!

J

jeff147Author

Thank you JAC.

Tori B

On behalf of my colleague, JaeAnnC, you're welcome, jeff147!

Please know that you can reach out to the QuickBooks Community at any time. We are always here to lend a hand. Have a good one!

A

angelarenee31

Please also reach out to me on this, we are already mid dec with no updates from QB

M

Mark_R

Hello there, @josey120, @LLCO, and @angelarenee31.

At this time, setting up a new payroll item for Colorado Paid Family Medical Leave Program is unavailable. QuickBooks is currently adding a solution to handle the unique taxation requirements. Intuit will send an email as soon as the instructions to set it up be available.

To know more about the Colorado Paid Family Leave tax, you can check out these resources:

Please know that the Community forum is always open if you have other concerns with QuickBooks Online payroll. Have a good one!

M

MishaAnn

Will this be a blanket email to all users?

A

anonymous_squirrel

It gets worse. Not only is it not fully functional yet, as of now you will be unable to pay any Colorado employee on or after January 1 2023. See error message in screenshot that occurs for any pay date on or after January 1 2023.

When can we expect this issue to be corrected?

K

Kris Colton

Hello;

I've been working with QB for the past six weeks trying to get the FAMLI tax created. The amounts defaulted in QB are incorrect and can't be changed. I was told last week they were working on it. Today I've been on two chats with screen shares and both disconnected after 45 minutes. I need to process paying within twenty minutes. Anyone have a solution? We have less the nine employees so the rate should be .45% for employees and 0% for employers. The rate defaults at 50% (not .50%) for employees. When I try to change the rate to .45%, it changes the employer's rate to 5%. And it's .45%, not 45%.

D

Director 1

@Kris Colton Please Reply if you get this figured out. I am having the same problem .

C

Cheri58

Today is January 2. I just prepared a payroll and the new Colorado Family Leave tax is not calculating at all. It also shows that both the employee and employer amounts should calculate at .9% which is incorrect. How do I get this to calculate properly?

JessT

update: The Colorado Family and Medical Leave Insurance Program (FAMLI) is already available in both QB Desktop Payroll and QBO Payroll. Just follow the steps in the mentioned article for detailed steps.

Hi Cheri58,

As of the moment, we're still working to finalize this tax, so stay tuned for some updates. If you haven't already, please contact our QBO Support, so they can add notes to your account about the Colorado Family Leave tax. In this way, they'll be aware that you've already run payroll this day.

If you have other questions in mind, feel free to go back to this thread.

B

BeckyMc

I GOT IT TO WORK!!
3 hours with support ( Thank you Rosabella!)

This is for QuickBooks online.
Payroll settings
Colorado Tax
Add FAMLI deduction and make sure it says active.

Now you need to update ALL employees. It's not like UITR where it auto populates all employees.

Select Employee
Tax Withholding
Just below State Assign Policy (This opens a tab with drop down) Select FAMLI
Save and Save again.

I ran a payroll and it showed for employee and employer

S

Sandi333

Becky -

I'm so glad you got it to work!

It's a DEBAUCLE that you have to go into each employee record for a withholding that is REQUIRED by the state (just like unemployment). You can't pick and choose a percentage for each employee. I have over 250 employees and it's going to take hours and hours. Can you imagine large companies with hundreds of employees? I guess those companies would be smart enough to not be using quickbooks.

M

marie20

I agree! This was not what I expected! I, too, have over 250 employees and had to go into each one separately. It took a full day!

J

Jandrew2020

Do new policies have to be created when the employee number fluctuates between 9 and 10 regularly? Some businesses have high turn over within the percentage calculated range. One payroll might be 8 employees and 4 payrolls later there could be 12 employees. Please describe how to handle these type of situations. Editing is not an option because the effective date is greyed out and changing the percentage could cause retro adjusting errors.

S

SirielJeaB

Welcome to the Community, @Jandrew2020. Thanks for reaching out to us.

The family and Medical Leave Insurance Program, a paid family medical leave policy, was implemented in Colorado (FAMLI). The program offers paid time off to employees so they can take care of themselves, sick family members, or a newborn baby.

Yes. The contribution rate will depend on the numbers of your employees. The premium for Colorado Paid Family Leave is 0.9% of each employee's gross wages, and it can be shared equally by the the employer and the employee. Businesses with nine employees or fewer are exempt from paying into the program. However, they still need to remit their employees' share (0.45%) of the premium on behalf of employees each quarter.

You can read this article for more details about how the program works: Colorado Family and Medical Leave Insurance Program (FAMLI).

Here's how to add Colorado FAMLI to your employees in QuickBooks Online Payroll:

Go to Settings ⚙, then select Payroll settings.
From Colorado tax, click Edit ✎.
Select Create Policy, then enter the number of employees used to determine your rate.
Enter your CO FAMLI Agency ID.
Select Define Rates. Enter your Policy Name.
Select the effective start date of the policy. then enter the percentages for you and your employees.
Click Save.

If you want to know how to ensure that your company complies with payroll rules and maintain compliance, you can read these articles:

You can also manage your taxes in QuickBooks by reading the article: Taxes.

Keep me posted if you have further questions about payroll-related concerns. I'm always here to help you. Keep safe!

R

RCV

Thanks for sharing some workarounds to resolve the Colorado Paid Family Leave rate hoofprints1d and Mophetmom.

If you want to know who is paying and filling your payroll taxes and forms, we can go to the Payroll settings to see the information. Here's how:

Click the Settings or Gear icon.
Select Payroll settings.
Go to the Taxes and forms section.
From there, you can review who is paying and filling.
Choose the Edit icon to make some changes.

You can visit these articles for additional information about Colorado Paid Family Leave tax: Colorado Paid Family Medical Leave Tax. Additionally, you may consider browsing through this reference on how to keep your payroll, finances, and whole business organized and compliant: 10 expert tips on how to stay payroll compliant.

Keep me posted if you have additional questions about Colorado Paid Family Medical Leave Program by leaving a reply below. We'll be here to answer them. Take care and have a good one!

K

krod2020

Quickbooks has the incorrect percentage listed in the download 1/12/23

Should be

.45 employer

and

.45 employee

Who is payment made to?