COLORADO – FAMLI Quarterly Reporting Reminder
As of January 1, 2023, Colorado employers are required to notify their employees of the new Family and Medical Leave Insurance program (FAMLI) through a variety of methods including paycheck stuffers, breakroom posters, and more. As of April 30, 2023, the first contributions to the FAMLI fund are due and for this quarter only, the state will offer a 30-day grace period for payments and wage reports before they are considered late. Employers and employees will make contributions to this fund throughout 2023, the first benefits will be available to employees who file a claim as of January 1, 2024.
The FAMLI premiums are set by law through 2025 and are currently set at 0.9% of wages. An employer will not be required to pay more than 0.45% (or half of the premium) into the program from their own business expenses. The remaining percentage is paid by the employee through payroll deductions. If you have less than 10 employees in all states, you are not required to pay the employer share. If you have more than 10 employees nationwide, you will be required to pay the employer’s premium but only on the headcount in Colorado. The upper limit of what an employer may be required to pay is capped at the same rate as social security withholding. The Federal Social Security Wage Cap is set at $160,200 earnings in 2023.
If you have Colorado employees, employers are required to register for an account number. Please reach out to Jeremy Muchnick (firstname.lastname@example.org) for more information on the registration services we offer. For more information on the FAMLI program, please visit https://famli.colorado.gov/employers/employer-faqs.
OHIO – Changes Coming to Claims Deadlines
New legislation was passed in Ohio under Senate Bill 302 that shortens the protest deadline for Requests for Separation Information to 10 calendar days. This change will take affect beginning in April. All requests you receive from Thomas & Company will reflect the new deadlines as it becomes effective. The current process allows for a response within 10 business days. Please take this into consideration and adjust your processes accordingly as you will see a quicker turn around time for OH requests at the beginning of next month.
Potential FUTA Credit Reductions for 2023
Five states had an outstanding Title XII loan balance as of January 1, 2023, and employers in California, Connecticut, New York, and the Virgin Islands may be subject to a FUTA reductions if the loans are not paid off by November 10, 2023. Illinois was originally included on the listing but has already paid their outstanding balance to avoid a FUTA Tax reduction for 2023. We will continue to monitor the advances on the Title XII loans throughout the year to assist in budgeting for the 2023 tax season.