Fischer, King Urge Administration to Raise Awareness of Proven Paid Family and Medical Leave Tax Credit

Fischer & King Led the Effort to Enact First Nationwide PFML Policy in 2017
U.S. Senators Deb Fischer (R-Neb.) and Angus King (I-Maine) recently sent a letter to the Biden administration urging the U.S. Department of Labor (DOL) to raise awareness of the proven, bipartisan Paid Family and Medical Leave (PFML) tax credit.

Senators Fischer and King led the effort to establish the country's first ever nationwide PFML policy, which was included in the 2017 Tax Cuts and Jobs Act and implemented in 2018.

Senator Fischer secured language in the recent FY 2024 funding legislation encouraging DOL to carry out a campaign to raise awareness of the PFML tax credit under Section 45S of the Internal Revenue Code. A recent survey conducted by the National Federation of Independent Business found that only 22% of small business owners had heard of the credit.

"The Section 45S PFML tax credit provides employers with a tax credit up to 25% of wages paid to employees while on PFML. In order to claim the credit, an employer must offer all qualifying employees at least two weeks of PFML, have a written PFML in place, and pay at least 50% of an employee's normal wages while on PFML," the Senators wrote.

In their letter, the Senators state that many employers remain unaware of the credit and its benefits due to delays in government-issued guidance and the COVID pandemic.

"We believe that there is a significant opportunity to help close this awareness gap and increase employee's access to PFML by working to promote the availability of the credit," the Senators continued. "Time is of the essence to carry out these efforts. We stand ready to work with you and the Department to help carry out these awareness efforts in order to help more employees gain access to PFML."

Read the full letter here or below. The Honorable Julie Su
Acting Secretary
U.S. Department of Labor
200 Constitution Avenue NW
Washington, D.C. 20210

Dear Acting Secretary Su:

We write today to respectfully request that the Department's Women's Bureau (WB) expeditiously carry out the report language included in the Fiscal Year 2024 Departments of Labor, Health and Human Services, Education, and Related Agencies Appropriation Bill report¹encouraging the WB to coordinate a campaign to raise awareness of the Paid Family and Medical Leave (PFML) tax credit under Section 45S of the Internal Revenue Code.

The Section 45S PFML tax credit provides employers with a tax credit up to 25% of wages paid to employees while on PFML. In order to claim the credit, an employer must offer all qualifying employees at least two weeks of PFML, have a written PFML in place, and pay at least 50% of an employee's normal wages while on PFML.

Unfortunately, due to the delay in issuing guidance for the credit along with the confusion of temporary paid leave credits associated with the COVID-19 pandemic, many employers remain unaware of the availability of the credit. A recent survey conducted by the National Federation of Independent Business found that only 22% of small business owners had heard of the credit.

As a result, we believe that there is a significant opportunity to help close this awareness gap and increase employee's access to PFML by working to promote the availability of the credit.

With the late enactment of the FY 2024 appropriations bills, time is of the essence to carry out these efforts. We stand ready to work with you and the Department to help carry out these awareness efforts in order to help more employees gain access to PFML.

Sincerely,

Public link

Please use the above public link if you want to share this noodl on another website.