2027 Premium Reduction and Employer Compliance Considerations

What Is Changing?

Effective January 1, 2027, Colorado’s Family and Medical Leave Insurance premium rate will decrease from 0.88% to 0.86% of taxable wages. Employers and employees will each contribute 0.43% of covered wages. Premiums apply up to the Social Security wage base. Employers with fewer than 10 employees remain exempt from the employer contribution.

Additional Administration Updates:

Employers and third party administrators may now include Individual Taxpayer Identification Numbers in bulk wage files for employees without Social Security numbers.

Employer action: Review payroll settings, leave policies and employee communications before January 1, 2027

As leave and compliance requirements continue to evolve, having the right partner matters. If you have questions about this update or would like guidance tailored to your organization, contact Spring Consulting Group at insight@springgroup.com. Our expert consultants are ready to help you proactively manage compliance and optimize your leave programs.