PL 115–97 takes effect Jan­u­ary 1, 2020.  There are sev­er­al pro­vi­sions that affect com­pa­nies and indi­vid­u­als as of that date

  • Paid Leave – if an employ­er offers at least two weeks of paid leave to employ­ees which amount to at least 50% of wages, the employ­er is offered a tax cred­it relat­ing to those employ­ees who earned less than $72,000 for the year. The tax cred­it is 12.5 to 25% of the amount paid to the employee.
  • Paid Short Term Dis­abil­i­ty wages can be count­ed as paid leave (either self fund­ed or ful­ly insured plan)
  • The Tax Cred­it will only be giv­en an employ­er with direct employ­ment respon­si­bil­i­ties and not to any employ­er using co employ­ment arrange­ments through a PEO