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