(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 e
Free access — add to your briefcase to read the full text and ask questions with AI
(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.