Issue/Symptom/Question

How do I set up Colorado Paid Family Leave (CO-FML)?

Applies To

PENTA for Windows

Payroll > Setup > Taxes > Payroll Tax Maintenance

Resolution/Fix/Answer

This new tax type will be available with the 2022 EOY Tax Kit.

Colorado Paid Family and Medical Leave is a state mandated tax on employers and employees up to an annual limit. For details please visit Home | Family and Medical Leave Insurance (colorado.gov)

In order for PENTA to calculate the tax correctly and not have any errors during payroll processing the CO-FML tax needs to be set up:

• Navigate to the Payroll Tax Maintenance window and query CO-FML

• Review the General tab according to the tax regulation - see below:

• 

  Update the Rates tab

  • State/Province will be CO

  • Earnings limit and rates must be set. You need to look up the limit and rates and set appropriately. PENTA does not maintain the limit and rates. 

• 

  Update the Accrual and Expense Accounts tab with the appropriate information.

• Optionally, in the following windows set up taxability rules for Tax Type CO-FML:

  • Direct Burden Rules

  • Master Deductions

  • Master Reimbursements

  • Other Compensation Information

  • Payroll Classes

  • Employee Payroll Information