Bill > S400

This bill amends the Internal Revenue Code to enhance the Paid Family and Medical Leave Tax Credit, providing employers with two options for claiming the credit: either a percentage of wages paid to employees on family and medical leave or a percentage of premiums paid for an insurance policy covering such leave. The bill expands eligibility by allowing employers to claim the credit for policies covering employees for at least 6 months (previously 1 year), and clarifies that employees must typically work at least 20 hours per week. The bill introduces new aggregation rules for determining employer eligibility, specifying that businesses cannot use separate lines of business or wage categories as reasons for not providing a written leave policy. Additionally, the bill requires the Small Business Administration and its resource partners to conduct outreach about the credit, and mandates that the Internal Revenue Service provide targeted communications to employers, payroll services, and tax professionals. The bill also prevents employers from claiming a double tax benefit by disallowing deductions for premiums that generate the tax credit. These changes will apply to taxable years beginning after the date of enactment.

Budget and Finance

https://www.congress.gov/bill/119th-congress/senate-bill/400/all-info