What Is COPL on Your W2 in Colorado?

A W2 form summarizes an employee’s annual wages and taxes withheld. For Colorado workers, an entry labeled “COPL” or a similar designation often appears. This article clarifies what COPL represents on your W2 and its relation to tax filing responsibilities.

Colorado Paid Leave

COPL on your W2 refers to contributions to the Colorado Paid Family and Medical Leave (FAMLI) program. This state-mandated social insurance provides paid leave benefits to eligible Colorado workers for various life events. The program allows employees to take time away from work for significant personal or family health needs without losing their income.

The FAMLI program covers an employee’s own serious health condition, caring for a family member with a serious health condition, or bonding with a new child after birth, adoption, or foster care placement. It also extends to military exigencies and safe leave for issues from domestic violence, sexual assault, or stalking. Eligibility requires earning at least $2,500 in Colorado wages during a specified base period.

The FAMLI program is jointly funded by employer and employee contributions. For 2023, 2024, and 2025, the total premium rate is 0.9% of an employee’s wages, up to the Social Security wage base. This rate is split evenly, with employees and employers each contributing 0.45%.

Employers with nine or fewer employees are not required to pay the employer’s share but must collect and remit the employee’s 0.45% contribution. Contributions began on January 1, 2023, with benefits available starting January 1, 2024. Employee contributions are deducted from wages on an after-tax basis.

Locating COPL on Your W2

The COPL entry, or its equivalent, is most commonly found in Box 14, labeled “Other.” This box is used by employers to report additional tax or income information that does not fit into other designated boxes on the form. Employers report employee contributions to the FAMLI program in this section.

The specific label in Box 14 for these contributions may vary by employer. While “COPL” is a common abbreviation, you might also see “CO PFML,” “FAMLI,” or “CO FAMLI” followed by the amount of your contribution. The IRS does not provide standardized codes for Box 14, allowing employers to use descriptive labels. If the label is unclear, contact your employer for clarification.

The amount reported in Box 14 next to the COPL designation represents your total contributions to the FAMLI program throughout the tax year. This amount reflects the payroll deductions taken from your wages to fund your share of the paid leave insurance.

How COPL Affects Your Tax Filing

The contributions you make to the Colorado FAMLI program, as reported on your W2, have implications for your tax filing. For federal income tax purposes, employee contributions to state-mandated paid family and medical leave programs, including FAMLI, are not deductible if you claim the standard deduction. If you itemize deductions, these contributions might be deductible as state and local taxes (SALT), but they are subject to the overall SALT deduction limitation, which can reduce their federal tax benefit.

The Internal Revenue Service (IRS) has provided guidance on the tax treatment of these state programs, indicating that employee contributions are included in taxable wages on Form W-2. The amount you contributed to FAMLI does not reduce your federal taxable income. Therefore, while the deduction appears on your W2, it typically does not reduce your federal tax liability unless you meet itemization criteria and limitations.

Regarding Colorado state income tax, the FAMLI premiums deducted from your pay are considered post-tax deductions and do not reduce your state taxable income. However, any benefits you receive from the FAMLI program are not subject to Colorado state income tax. If FAMLI benefits are included in your federal taxable income, Colorado law allows you to subtract this amount when calculating your state income tax liability.