Posted on March 7, 2019 by jpheasant
HARTFORD – State Representative Robin Green (R-55) has recently co-sponsored a similar bill to one she introduced last session, designed to provide a tax credit to employers who voluntarily provide paid family and medical leave benefits to their employees in addition to creating a Family and Medical Leave Accounts Program.
“This bill, unlike others being proposed this session, supports businesses around the state by offering incentives instead of taking a one size fits all approach,” Rep. Green said. “Additionally, it doesn’t rely on mandatory reductions to the paychecks of taxpayers in order to fund an account that may or may not become insolvent.”
HB-5407, An Act Establishing a Tax Credit for Employers that Provide Paid Family and Medical Leave Benefits and a Family and Medical Leave Accounts Program, serves as an alternative to two other proposals, one from the governor and another from legislative Democrats that require mandatory enrollment, reductions, and no opt out clause.
Under H.B. 5407, individuals will be able to open their own savings account that can be used specifically for family and medical leave expenses. Not only can the individual contribute to their account, other individuals or businesses may contribute after filling out a participation agreement set up through the Office of the Treasurer. Individuals can choose to fund their account through a payroll deduction, transfer from their bank, or any means they see fit. The funds deposited into the account will be tax exempt and not counted as an asset or income when determining eligibility for state programs.
Under current state law, Family Medical Leave eligibility requirements apply to those companies who employ at least 75 people. Employees have to work 1,000 hours during the 12 months preceding their leave and are eligible for up to 16 weeks of unpaid leave during a 24 month period.
The Finance, Revenue & Bonding Committee held a public hearing earlier this week to listen to testimony on HB-5407. To date, the bill has received backing from the Connecticut Business Industry Association.