(SBA) - When a family welcomes a newborn into the world or a medical condition leaves someone unable to work, it’s important that employees of businesses both large and small have access to paid family and medical leave. Paid family and medical leave – known as PFML for short – ensures that workers can take needed paid time off to spend with their families when a new baby arrives or, in the event of a medical emergency, allows employees to take the time that they need to heal and recover without missing a paycheck. But, right now, there is still uncertainty for both businesses and their employees because a tax credit – created through the Tax Cuts and Jobs Act – to help employers offer PFML expires next year.
According to the Bureau of Labor Statistics, more than 41% of employees at businesses with more than 500 employees have access to PFML while just 20% of workers at businesses with fewer than 99 employees have access to PFML. While larger corporations have more resources to offer PFML, we cannot leave our main-street businesses and their workers behind and allow this important tax credit to disappear because of congressional inaction.
That’s why I introduced the Paid Family and Medical Leave Tax Credit Extension and Enhancement Act to help small businesses offer PFML to their employees. My legislation delivers a real solution by making this credit permanent and more accessible for small businesses so that they can more easily offer up to 12 weeks of PFML for their employees every year. This credit will help our businesses offset the large cost of offering PFML while keeping employees on payroll and their doors open.
More specifically, this legislation improves the 45S tax credit available to small businesses that provide PFML, expanding it to include PFML provided through an insurance company or in a state with a mandate. The bill also reduces the minimum time a worker must be employed to claim the credit from one year to 6 months to more quickly support young employees who are starting their families and planting their roots.
In addition to the looming expiration of the Tax Cuts and Jobs Act, we also face another challenge. Per a recent survey by the National Federation of Independent Business, only 22% of small business owners had heard of this important tax credit. This legislation ensures that the Small Business Administration takes greater action to educate small businesses about the use of this credit so that they can better accommodate the needs of their employees in a financially viable manner, make a profit, and invest in our communities.
Our main streets and small businesses power our economy and keep our rural communities strong. By making this important tax credit permanent for our main-street employers, we can deliver certainty for our small businesses, keep our workers healthy and employed, and support our economy and rural communities. As a member of the House Ways and Means Committee, I will continue to advocate for policies that benefit our families, farmers, and businesses.
We are government together, and your thoughts and opinions matter to me. Please contact my office at Feenstra.House.Gov or by phone at 202-225-4426 if I can ever be of assistance. I am proud to represent our families, farmers, main street businesses, and rural communities in Congress.
