S 1628 — Paid Family Leave Pilot Extension Act

Summary

Paid Family Leave Pilot Extension Act This bill extends through 2022 the tax credit for employers who provide employees with paid family and medical leave. The bill also requires the Government Accountability Office to (1) examine the effectiveness of the tax credit for paid family and medical leave, (2) recommend ways to modify or enhance the tax credit to further promote access to paid family and medical leave for qualifying employees, and (3) suggest alternative policies that federal and state governments could implement to increase access to paid family and medical leave.

Bill Text

• Introduced Introduced in Senate Current html May 23, 2019

AI-generated reading aid from the bill's amendatory text — verify against the official bill.

The bill extends the employer credit for paid family and medical leave through December 31, 2022, and makes several amendments to existing provisions regarding the credit.

• Section 45S(i)

  December 31, 2019 → December 31, 2022

  The expiration date for the employer credit is extended to allow for additional time for employers to utilize the credit.

• Section 45S(c)(1)(B)

  For purposes of determining the rate of payment under the program, any family and medical leave which is paid by a State or local government or required by State or local law, determined as a percentage of the wages normally paid to such employee for services performed for the employer, shall be taken into account. → For purposes of determining the rate of payment under the program, any family and medical leave which is paid by a State or local government or required by State or local law, determined as a percentage of the wages normally paid to such employee for services performed for the employer, shall be taken into account.

  Clarifies the inclusion of state or local paid leave in the calculation of the rate of payment under the employer credit.

• Section 45S(c)(4)

  For purposes of this section, any → Any

  Removes introductory language for simplification and clarity.

• Section 45S(c)(4)

  amount of paid family and medical leave provided by the employer → wages taken into account under subsection (a)

  Updates terminology to align with the new calculations for determining the credit amount.

• Section 45S(b)(1)

  credit allowed → wages taken into account

  Changes the reference from 'credit allowed' to 'wages taken into account' to clarify the basis for the credit.

• Section 45S(c)(3)

  credit allowed; all persons which are treated as a single employer under subsections (b) and (c) of section 414 shall be treated as a single employer. → Aggregation rule.-- Except as provided in subparagraph (B), all persons which are treated as a single employer under subsections (b) and (c) of section 414 shall be treated as a single employer.

  Introduces a subheading for the aggregation rule for clarity.

• Section 45S(c)(3)

  the operation of a separate line of business, the rate of wages or category of jobs for employees (or any similar basis), or the application of State or local laws relating to family and medical leave, but may include the grouping of employees of a common law employer. → the operation of a separate line of business, the rate of wages or category of jobs for employees (or any similar basis), or the application of State or local laws relating to family and medical leave, but may include the grouping of employees of a common law employer.

  Clarifies the conditions that allow for exceptions to the aggregation rule.

• Section 45S(d)(2)

  compensation → compensation, as determined on an annualized basis (pro-rata for part-time employees),

  Refines the definition of compensation to include provisions for annualization and part-time calculations.

Action History

1. May 23, 2019

   Introduced in Senate

2. May 23, 2019

   Read twice and referred to the Committee on Finance.

Sponsors

• Deb Fischer · Primary
• King, Angus S., Jr. · Cosponsor
• Susan M. Collins · Cosponsor
• Kyrsten Sinema · Cosponsor
• Jerry Moran · Cosponsor

Subjects