National Paid Leave Credit Takes Effect with Tax Cuts and Jobs Act – E&Y Webcast
On Dec. 22, 2017 the President signed the GOP-backed Tax Cuts and Jobs Act into law. While it’s most known for the sweeping tax cuts it’s aptly named for, the bill also includes a number of provisions, including a tax credit related to paid leave. This makes it the first paid leave measure at a national level.
Unlike other recently proposed paid leave bills this provision does not actually require employers to roll out paid leave to their workforce. Rather, starting this year, it will provide a tax credit to those employers that offer at least two weeks of leave and compensate their workers at a minimum of 50 percent of their regular earnings. To qualify for the credit employers must offer both full-time and part-time workers paid leave if they have been employed at the organization for at least a year. This overall effort can be viewed as a trial as it will end after 2019, unless extended by Congress.