Paid Family and Medical Leave (PFML) is a state-mandated insurance program that funds employee leave for qualifying medical and family events.
R365 Payroll supports PFML contribution calculations for employers operating in Colorado, Delaware, and Minnesota. R365 creates the PFML tax jurisdictions on the payroll company's behalf. Payroll administrators configure contribution settings for each state's PFML jurisdiction from the Company Tax Profile page.
Supported States
R365 currently supports PFML for the following state programs. Additional states will be added as their programs launch.
State | Program Name | Notes |
|---|---|---|
Colorado | Family and Medical Leave Insurance (FAMLI) | Employer and employee contributions. Employer may elect to cover a portion of the employee's share. Employee count certified annually in Q4. |
Delaware | Paid Family and Medical Leave | Employer and employee contributions. Per-employee waiver option available. Employee count calculated automatically by R365. |
Minnesota | Paid Leave | Employer and employee contributions. Qualified small employer option available. Employee count calculated automatically by R365. |
Setting Up PFML Contributions
PFML contribution settings are configured per jurisdiction on the Company Tax Profile page. Each state has a PFML - Employer jurisdiction (tax type ER_FLI) with its own setup panel. For a full description of each field in the panel, see the Company Tax Profile article.
Click steps to expand for additional information and images.
1) Navigate to the Company Tax Profile page.
2) In the Tax jurisdiction set up section, locate the PFML - Employer row for the applicable state.
3) Click the edit button (pencil icon) in the Actions column to open the Tax Jurisdiction Setup panel.
This button will only be enabled for specific states, and only the PFML tax type jurisdictions can be edited.
4) Configure the contribution settings for the jurisdiction and click Save.
A confirmation dialog appears: "You're about to save changes to this jurisdiction's setup. This might change the tax calculations in payment." Click Save changes to confirm or Discard changes to exit without saving.
State-Specific Requirements
Each state's PFML program has its own contribution rules and setup options.
Colorado (FAMLI)
Colorado's FAMLI program splits the premium between employer and employee at a rate set by state law. The contribution split fields in the setup panel reflect the current state-mandated percentages.
Employers may elect to cover a portion of the employee's share voluntarily by entering a value in the Employer elected percentage field.
Colorado requires employers to certify their employee count annually in Q4 in the Year-end reporting section of the setup panel. This count takes effect the following calendar year. If not updated by December 31, R365 carries forward the current year's count.
When the Colorado year-end employee count has not been updated for the upcoming year, a notification appears on the Payroll Hub page. Navigate to the Company Tax Profile page to update the count.
Minnesota (Paid Leave)
Minnesota Paid Leave splits the premium between employer and employee. R365 calculates the employee count automatically — the Number of employees field in the setup panel is read-only.
Employers with fewer than 30 employees may qualify for reduced premiums as a small employer. Check the Qualified as a small employer checkbox in the setup panel to apply this status.
Important Note About the Small Employer Setting
Changing the Qualified as a small employer setting affects tax calculations. A confirmation dialog appears when this checkbox is changed. Before saving, verify the value matches the current rate from the Minnesota Department of Employment and Economic Development (DEED) for the active tax year.
Delaware (PFML)
Delaware's PFML program splits the premium between employer and employee. R365 calculates the employee count automatically.
Delaware supports a per-employee waiver that excludes individual employees from the employer's PFML headcount calculation. See Per-Employee Waiver (Delaware) for details.
Per-Employee Waiver (Delaware)
Delaware is the only state with a per-employee waiver for PFML. When enabled for an employee, R365 excludes that employee from the employer's Delaware PFML headcount calculation.
To update the waiver status, reach out to your CSM or payroll support and request to exclude an employee from the Delaware Paid Family Leave employer headcount calculation.