If you own a business in Colorado and you’re planning a baby, these are the questions I get most. Every number here comes from the Colorado FAMLI Division and reflects 2026 rates.
Planning your leave
How do I plan a maternity leave if I work for myself in Colorado?
High level, I’d start with three critical pieces:
- A financial plan for how you’ll get paid while you’re out.
- A client plan for who handles your clients and what they’re told.
- A business plan for what keeps running without you.
Colorado FAMLI covers part of the first piece if you opt in early. The other two you build yourself, ideally 6 to 12 months before your due date.
How far ahead should I start planning?
Opt into FAMLI as soon as you know you want a baby. You have to pay premiums for at least one full quarter before you can collect benefits. Start the business side of your plan 6 to 12 months before your due date, so you have time to document processes, adjust client contracts, and build up savings.
Colorado FAMLI for the self employed
Does Colorado FAMLI cover self employed people?
Yes, if you opt in. Participation is optional for self employed Coloradans. If you do nothing, you aren’t covered and you owe nothing. To qualify, you must live and work in Colorado. I break down the entire program here in this article.
How much does FAMLI cost if I’m self employed?
You pay 0.44% of your gross income from self employment. Here’s what that looks like:
- $50,000 a year: about $220 a year
- $80,000 a year: about $352 a year
- $120,000 a year: about $528 a year
Premiums stop at the federal Social Security wage cap, which is $184,500 in 2026. The rate is reviewed every year, and state law caps it at 1.2%.
How much will FAMLI pay me during maternity leave if I work for myself?
FAMLI uses a sliding scale based on your average weekly income from the previous five quarters. In 2026:
- It replaces 90% of the first $735.67 of your average weekly wage.
- It replaces 50% of everything above that.
- The maximum is $1,381.45 per week.
*Remember, your income needs to be reported in order to qualify. The state will want to see a previous year’s tax return, W2 if you employ yourself, or some other documentation to determine that you have been paying yourself a taxable wage.
Estimated weekly benefits by annual self employment income:
- $50,000 a year: about $775 per week, or about $9,300 over 12 weeks
- $80,000 a year: about $1,064 per week, or about $12,760 over 12 weeks
- $120,000 a year: $1,381.45 per week (the maximum), or about $16,580 over 12 weeks
These are estimates. For your own numbers, use the premiums and benefits calculator on the FAMLI website: select “salary” and enter your gross self employment income.
Is FAMLI worth it for a business owner?
Run your own numbers, but here’s the math at $80,000 a year. You’d pay about $1,056 in premiums over the required three years. One 12 week leave would pay about $12,760. That’s roughly 12 times what you put in. Colorado has one of the most competitive family leave programs in the country for self-employed women.
How many weeks of paid leave can I get?
- Bonding leave: up to 12 weeks after your baby arrives.
- Pregnancy or childbirth complications: up to 4 more weeks, for 16 total.
- NICU stay: starting January 1, 2026, up to 12 weeks of Neonatal Care Leave while your baby is in neonatal care, followed by up to 12 weeks of bonding leave once your baby comes home.
How do I opt in?
- Register in the My FAMLI+ Employer portal. Self employed people use the employer portal.
- Upload your most recent IRS tax transcript and any W-2s you received.
- Report your income and pay premiums every quarter.
- Submit your annual tax documents by December 1 each year.
Your coverage starts the day you file your election. You can collect benefits after you’ve reported and paid premiums for at least one quarter.
What are the deadlines?
Quarterly premiums and wage reports are due January 31, April 30, July 31, and October 31. Annual tax documents are due December 1. Every wage report needs supporting documentation, or it may be treated as late and fined.
How long do I have to stay in the program?
At least three years. You agree to that when you opt in.
What if my income drops to zero while I’m on leave?
You still file your quarterly wage report, and it can show zero. Set a reminder before you go out so this deadline doesn’t slip.
I have an LLC or an S Corp. Am I self employed or an employer?
Your business structure doesn’t decide it. What matters is whether your business has qualifying employees. If you’re a sole proprietor or own a business with no employees, you’re treated as self employed and opting in is your choice. If you own 25% or less of a business, the FAMLI Division won’t assume you’re self employed, and you’ll need to show your work is independent. If you want support navigating your options, you can apply to work with me 1:1.
Are FAMLI benefits taxable?
FAMLI benefits aren’t subject to Colorado income tax. FAMLI sends you a 1099-G, and you can choose a flat 10% federal withholding. Whether the benefits are federally taxable depends on your situation, so confirm it with your tax professional.
If you have employees
I have employees. What do I owe under FAMLI?
Any business with at least one qualifying employee must register with FAMLI. The total premium is 0.88% of each employee’s wages.
- 9 or fewer employees: you send in the employee’s 0.44% share each quarter. You don’t owe the employer share.
- 10 or more employees: you send in the full 0.88%.
You can choose to pay the employee’s share yourself instead of deducting it from his or her paycheck. Update your employee headcount in My FAMLI+ by February 28 each year. If you miss that date, FAMLI assumes you have 10 or more employees and bills you the full premium.
What happens when an employee goes on maternity leave?
FAMLI pays her benefit directly. You don’t pay her wages from your payroll while she’s out. Your job is covering her work and keeping her in the loop on what she wants to hear about while she’s gone.
Beyond FAMLI
Is FAMLI enough to fund my maternity leave?
For most business owners, it covers a large share but leaves a gap. At $80,000 a year, you earn about $6,670 a month, and FAMLI pays about $4,600 a month. That leaves roughly $2,000 a month to cover from savings or ongoing revenue, before business expenses like software, contractors, and rent. Calculate your gap early, so you know how much to save.
What else do I need besides FAMLI?
A client plan and a business that runs without you. That means:
- Deciding which work pauses, which gets automated, and which gets handed off
- Writing down how the work you hand off gets done
- Telling clients your dates and their point of contact well before your leave
Who can help me plan maternity leave as a Colorado business owner?
I’m Alyson Caffrey, a Colorado FAMLI Certified maternity leave planner and the founder of Master Maternity Leave. I help self employed women and small business owners in Colorado plan their leave: FAMLI, private insurance, client plans, and team coverage. Apply to work with me 1:1 at mastermaternityleave.com/colorado. To build your plan on your own, Planned gives you every task with a due date, built from your due date and your last workday: https://mastermaternityleave.com/planned
Sources: Colorado FAMLI Division, famli.colorado.gov: Self Employed Workers, Employers, Neonatal Care Leave, and the Premiums and Benefits Calculator. Figures verified October 12, 2026.
