Colorado Paid Family Leave

Effective January 1, 2023

Starting January 1, 2023, most Colorado workers (full-time, part-time and seasonal) will see a new deduction on their paychecks of 0.45% of their wages.

For more information, visit the Colorado FAMLI website at https://famli.colorado.gov/employers/famli-toolkit-for-employers


To create a pay factor for this payroll tax, please follow these instructions:

  1. Backup your company data before making these changes.
  2. Go to Payroll/Configure/Tax Calculations and create a new Tax similar to the one shown below. You can name it whatever you like.
    3. Tax Calculations Oregon 2023
  3. Go to Payroll/Configure/Taxes and assign the tax to a Remittance Vendor, select relevant earnings, and assign Liability and Expense accounts similar to the following.
    4. Taxes Oregon 2023
  4. Click OK and Save changes.
  5. Assign the Tax to your relevant employees.
  6. After posting your payroll, review the amounts in the Payroll/Print Taxes Activity report.