Managing payroll deductions accurately is critical, especially with new laws like the Colorado FAMLI Act in effect. If you’re wondering how to enter the Colorado FAMLI Act deduction in QBs (QuickBooks), you’re not alone. Many Colorado employers are seeking guidance to stay compliant while using QuickBooks Desktop or Online.
This guide walks you through the step-by-step process to set up and track the Colorado FAMLI deduction in QuickBooks. For direct help, don’t hesitate to call +1-866-409-5111 and talk to a payroll expert.
Learn how to enter the Colorado FAMLI Act deduction in QBs accurately. Follow this easy guide or call +1-866-409-5111 for expert payroll assistance.
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The Colorado Family and Medical Leave Insurance (FAMLI) Program provides paid leave to employees for family or medical reasons. As of 2023, both employers and employees contribute a small percentage of wages toward this program.
For payroll processing, it’s essential to:
Set up a deduction item for employee contributions.
Set up a company contribution item for employer payments (if applicable).
To make sure you’re in compliance, follow these steps carefully based on your version of QuickBooks.
Open QuickBooks Desktop.
Navigate to:
Employees > Payroll Item List > Payroll Item > New
Choose:
Custom Setup > Next > Deduction > Next
Name the item:
Example: CO FAMLI - Employee
Enter the tax tracking type:
Choose None, unless your accountant specifies differently.
Fill in the liability account:
Select or create a liability account, e.g., CO FAMLI Deductions Payable.
Enter default rate (currently 0.45% of gross wages for employees):
Adjust as needed for updated rates.
Click Finish.
Go to Payroll Settings > Deductions/Contributions
Select Add a Deduction/Contribution
Choose:
Deduction for employee portion
Company Contribution for employer portion
Name the deduction: CO FAMLI - Employee
Select type: Other Deduction or similar
Add the deduction rate: 0.45%
Assign the deduction to each employee under Employee > Payroll Info
Save and run payroll to verify the deduction is calculating correctly.
Colorado’s total contribution rate is 0.9%—split 50/50 between employer and employee (unless exempt).
Always verify current rates with the Colorado Department of Labor.
Consult a CPA if you're unsure about tax tracking or classification.
Backup your company file before making payroll changes in QuickBooks Desktop.
Here are common issues and how to fix them:
Deduction not showing? Double-check the employee’s profile to confirm the deduction is assigned.
Incorrect amount? Ensure the rate is entered as a percentage (0.45%) not a flat amount.
Liability account missing? You can create one under Lists > Chart of Accounts > New > Other Current Liability.
Failing to correctly enter the Colorado FAMLI Act deduction in QBs can result in:
Payroll tax errors
Penalties from the Colorado Department of Labor
Frustrated employees and compliance headaches
Getting it right the first time saves time, money, and stress. If you ever get stuck, just dial +1-866-409-5111—quick help is just a call away.
QuickBooks can make payroll simple—if configured correctly. By following this step-by-step guide, you’ll ensure that the Colorado FAMLI Act deduction is properly accounted for and your business stays compliant with state law.
Need assistance? Don’t risk costly mistakes. Call +1-866-409-5111 today to get expert help with your QuickBooks payroll setup.