Colorado FAMLI Headcount Reporting: The Annual Task Your Payroll Provider Can’t Do for You

One missed HR task could cost a four-person business more than $700 in a year.

Not because they hired anyone. Not because wages increased. Because they missed an annual headcount update.

I recently saw a Colorado business owner share that their business had four team members but was being charged FAMLI premiums under the 10-or-more-employee category. They hadn’t realized their third-party administrator couldn’t complete the annual headcount update for them.

Their actual payroll and extra costs weren’t shared. But the situation is a good example of how an easily missed requirement can become an unnecessary expense.

Here’s what Colorado small business owners need to know.

Your payroll provider may handle FAMLI, but this task still belongs to you

A third-party administrator, or TPA, may help submit your FAMLI wage reports and premium payments.

The annual employee headcount update is a separate task. Colorado’s FAMLI Division says employers must complete it themselves; TPAs cannot submit it on their clients’ behalf or include it in a bulk upload.

Your previous headcount also doesn’t automatically carry forward. Even if your team hasn’t changed, you still need to complete the annual update. Without it, your account can default to the 10-or-more-employee category and the full premium rate.

Why that matters, even with only four team members

For 2026, the total FAMLI premium rate is 0.88%. Businesses with nine or fewer employees generally don’t owe the employer half, but must still remit the employee portion of 0.44%.

Let’s use a simple example:

• Four team members.
• Each working 40 hours per week.
• Each earning $20 per hour.
• Working all 52 weeks.

That’s $166,400 in annual payroll. An additional 0.44% employer contribution would equal $732.16 over a full year, using 2026 rates.

This is an illustration, not the actual cost reported by that business owner. The higher category changes the premium rate applied to covered wages; it doesn’t mean the business is paying premiums on six imaginary employees.

On the surface, $700 might not seem like much. But it could be one of several avoidable expenses adding up throughout the year.

Small business owners already wear enough hats. Knowing which tasks remain yours, even when you pay someone to handle payroll, shouldn’t require learning the hard way.

Your headcount may be different from today’s team roster

For this annual update, Colorado instructs employers to count payroll employees nationwide who worked at least 20 calendar workweeks during the preceding calendar year. Both full-time and part-time employees count.

The requirement also applies to employers with approved private FAMLI plans. Being a small employer doesn’t remove the annual reporting task.

What to do now

1. Log in to My FAMLI+ Employer. Review your headcount information, messages, and outstanding tasks.
2. Confirm who owns the annual update. Assign someone within your business to complete it and save the confirmation.
3. Check the current year’s instructions and deadline. As you prepare for 2027, watch for the new annual task and official guidance.
4. Coordinate with your payroll provider. Confirm that your payroll setup reflects the appropriate contribution category.

If you missed an update or think your account is being charged incorrectly, contact FAMLI about the steps needed to review and correct it.

Put the next HR deadline on your radar

This is exactly why I created Colorado HR Deadlines and Reminders.

It’s a free, practical calendar and checklist to help small business owners keep track of common HR deadlines, required tasks, and headcount thresholds as they prepare for 2027.

I’ll also share blog posts like this one explaining what applies, what to do, and where to go, along with email reminders before important deadlines arrive.

Download the free calendar and sign up for HR updates and deadline reminders here:

A little preparation now can help keep an overlooked task from becoming next year’s unnecessary expense.

Information reviewed October 15, 2026. The cost illustration uses 2026 rates. Check current FAMLI guidance for the applicable year’s rates, deadlines, and requirements.