The FAMLI line in Box 14 of your Colorado W-2 shows what your employer withheld from your paychecks during the year for the state’s Paid Family and Medical Leave Insurance program. It’s 0.44% of your covered wages, taken out after taxes are calculated, which means it doesn’t reduce your federal or state taxable income and doesn’t need any special treatment when you file.
Where the Amount Appears and What the Label Means
Box 14 of Form W-2 is the catch-all “Other” section employers use for information that doesn’t fit anywhere else on the form. The IRS doesn’t assign a standard code for state paid leave programs, so the exact label depends on your employer’s payroll system. Colorado’s FAMLI Division tells employers to use “FAMLI” as the label.1Family and Medical Leave Insurance (FAMLI). Employers You might also see “CO FAMLI,” “COFAMLI,” or a similar variant.
The dollar amount should match the sum of the FAMLI deductions on your pay stubs for the year. If it doesn’t, start with your pay stubs rather than your W-2, since the stub detail is what the Box 14 total is built from.
How to Categorize CO FAMLI in Tax Software
Most tax software asks you to pick a category for anything in Box 14. For FAMLI, choose “Other deductible state or local tax” if that option appears, or “Other — not classified” if you’re unsure. The choice doesn’t change your federal tax. FAMLI premiums are already withheld on a post-tax basis, so there’s no federal deduction or credit tied to them. Colorado doesn’t offer a state deduction for premiums you paid in either.
If the software flags the label as unrecognized, re-enter it as “CO FAMLI” or just “Other.” The Box 14 amount is informational for federal purposes, and a generic classification won’t affect your return.
Why It Doesn’t Lower Your Taxable Wages
The full 2026 FAMLI premium is 0.88% of covered wages, split evenly between employer and employee at 0.44% each.2Family and Medical Leave Insurance (FAMLI). Premium and Benefits Calculator On a $70,000 salary, the employee share works out to about $308 for the year, or roughly $25.67 a month.
Those premiums come out after federal and state income taxes are figured, similar to union dues or after-tax life insurance. That’s why the wages shown in Boxes 1, 3, and 5 of your W-2 are the same whether FAMLI was withheld from your check or your employer covered the whole premium. Your taxable income doesn’t move either way.
Premiums apply to the same compensation Social Security taxes do: hourly wages, salary, tips, bonuses, commissions, and vacation pay. For 2026, they’re only collected on wages up to $184,500, which matches the federal Social Security wage base.2Family and Medical Leave Insurance (FAMLI). Premium and Benefits Calculator3Social Security Administration. Contribution and Benefit Base Once your year-to-date earnings pass that ceiling, the deduction stops. The maximum possible employee contribution for 2026 is about $811.80 ($184,500 × 0.44%). If that’s roughly the number in your Box 14, you hit the wage cap.
Colorado law caps the combined premium at 1.2% and requires the FAMLI Division Director to recalculate the rate every year after 2025.1Family and Medical Leave Insurance (FAMLI). Employers If the rate shifts, next year’s Box 14 figure will reflect it.
If Box 14 Is Blank or the Amount Looks Wrong
A blank Box 14 doesn’t necessarily mean a mistake. Colorado law lets employers pay the full 0.88% themselves without charging the employee share, as long as they don’t charge you more than half the total.1Family and Medical Leave Insurance (FAMLI). Employers If your employer covers the whole premium, there’s nothing to report in Box 14.
Small employers follow a different split. Businesses with nine or fewer employees aren’t required to pay the employer’s 0.44% share. They still remit the employee’s 0.44% each quarter, so your Box 14 figure should look the same as a larger employer’s employee: 0.44% of your covered wages.1Family and Medical Leave Insurance (FAMLI). Employers
Some employers meet their FAMLI obligations through an approved private plan instead of the state program. Private plans can’t deduct more from your paycheck than the state plan would.4Family and Medical Leave Insurance (FAMLI). Private Plans The label and amount in Box 14 may look different depending on the insurer’s reporting conventions, but the tax treatment is identical: post-tax premiums, no federal adjustment, no Colorado deduction for what you paid in.
If You Also Received FAMLI Benefits That Year
Premiums and benefits are reported separately. If you actually took leave and received FAMLI payments, those don’t show up on your W-2 at all. The state issues a Form 1099-G, with the benefit amount in Box 1 (labeled “unemployment compensation”), whenever your total FAMLI benefits for the year reach $10 or more.5Family and Medical Leave Insurance (FAMLI). My FAMLI+ User Guide: Next Steps
FAMLI benefits are taxable on your federal return. Colorado treats them differently: to the extent the benefits are included in your federal taxable income, you can subtract the full amount on your Colorado return.6Cornell Law Institute. Colorado Regulation 39-22-104(2)-1 – Modification to Federal Taxable Income for FAMLI Benefits The subtraction covers benefits from both the state plan and an approved private plan, so you owe no Colorado state income tax on the payments themselves.7Family and Medical Leave Insurance (FAMLI). IRS Tax Guidance
Because the federal side is taxable, you can opt into having 10% of each benefit payment withheld for the IRS through your My FAMLI+ dashboard. You can turn the setting on or off at any time, but you can’t recover amounts already withheld.8Family and Medical Leave Insurance (FAMLI). Individuals and Families FAQs If you skip withholding and your benefits are large, estimated tax payments may be worth considering to avoid an underpayment penalty.
One warning: if a 1099-G arrives for FAMLI benefits you never applied for, treat it as a possible fraudulent claim filed in your name. Colorado’s FAMLI Division has a fraud reporting form for this.9Family and Medical Leave Insurance (FAMLI). Report FAMLI Fraud Don’t ignore it. The IRS will expect you to either report the income or explain why it isn’t yours.