Colorado § 8-13.3-507 - Premiums - rules.

§ 8-13.3-507. Premiums - rules.

(1) Payroll premiums shall be authorized in order to finance the payment of family and medical leave insurance benefits under this part 5, and administration of the family and medical leave insurance program.

(2) Notwithstanding the advance payment of premiums set forth in section 8-13.3-518 (4)(a), beginning on January 1, 2023, for each employee, an employer shall remit to the fund established under section 8-13.3-518 premiums in the form and manner determined by the division.

(3) (a) From January 1, 2023, through December 31, 2025, the premium amount is nine-tenths of one percent of wages per employee.

(b) From January 1, 2026, through December 31, 2026, the premium amount is eighty-eight hundredths of one percent of wages per employee.

(c) For the 2027 calendar year and for each calendar year thereafter, on or before September 1 of the preceding year, the director shall adopt by rule the premium rate for the following calendar year. The director shall set the rate in a manner such that:

(I) At the end of the calendar year during which the premium rate is effective, the balance of the fund is an amount not less than six months' worth of projected expenditures from the fund required for the performance of the functions and duties of the director;

(II) The volatility of the premium rate is minimized; and

(III) The premium amount does not exceed one and two tenths of a percent of wages per employee.

(d) The division shall provide public notice in advance of January 1 of any changes to the premium.

(4) (a) A self-employed individual who elects coverage under section 8-13.3-514 shall pay only 50 percent of the premium required for an employee by section 8-13.3-507 (3) on that individual's income from self-employment.

(b) An employee of a local government who elects coverage under section 8-13.3-514 shall pay only 50 percent of the premium required for an employee by section 8-13.3-507 (3) on that employee's income from that local government employment.

(c) An employee of a local government or a self-employed person who elects coverage under section 8-13.3-514 shall remit the premium amount required by this subsection directly to the division, in the form and manner required by the director by rule.

(5) An employer with 10 or more employees may deduct up to 50 percent of the premium required for an employee by section 8-13.3-507 (3) from that employee's wages and shall remit 100 percent of the premium required by section 8-13.3-507 (3) to the fund. An employer with fewer than 10 employees may deduct up to 50 percent of the premium required for an employee by section 8-13.3-507 (3) from that employee's wages and shall remit 50 percent of the premium required by section 8-13.3-507 (3) to the fund.

(6) Premiums shall not be required for employees' wages above the contribution and benefit base limit established annually by the federal social security administration for purposes of the Federal Old-Age, Survivors, and Disability Insurance program limits pursuant to 42 U.S.C. section 430.

(7) The premiums collected under this part 5 are used exclusively for the payment of Family and medical leave insurance benefits and the administration of the program. Premiums established under this section are fees and not taxes.

(8) An employer with an approved private plan under section 8-13.3-521 shall not be required to remit premiums under this section to the fund.

(9) Notwithstanding section 8-13.3-507 (2), if a local government has declined participation in the program in accordance with section 8-13.3-522:

(a) The local government is not required to pay the premiums imposed in this section or collect premiums from employees who have elected coverage pursuant to section 8-13.3-514; and

(b) An employee of the local government is not required to pay the premiums imposed in this section unless the employee has elected coverage pursuant to section 8-13.3-514.

Source: Initiated 2020: Entire part added, Proposition 118, L. 2021, p. 4231, effective upon proclamation of the Governor, December 31, 2020. L. 2022: (2) amended, (HB 22-1133), ch. 170, p. 1040, § 2, effective May 17. L. 2025: (3) amended, (SB 25-144), ch. 293, p. 1499, § 2, effective August 6.

Editor's note: This section was originally numbered as 8-13.3-407 in Proposition 118 but was renumbered on revision for ease of location.

Cross references: For the legislative declaration in HB 22-1133, see section 1 of chapter 170, Session Laws of Colorado 2022.