LINCOLN – A bill proposing a paid family tax leave is getting guidance from The Department of Treasury and the IRS.
The bill created by Nebraska Senator Deb Fischer, will allow up to 12 weeks of paid family maternity or paternity leave.
In exchange for offering the leave, employers will receive as much as a 25 percent tax credit for the amount of wages replaced. Employees who participate cannot make more than $72,000 per year.
The leave program was originally a two-year tax credit, intended to give Congress the opportunity to determine its effectiveness. But the new plan will extend for three more years.
If passed by lawmakers, the Paid Family Leave Pilot Extension Act would be granted through 2022 to determine the effectiveness of the program.
This extension would give businesses more time to implement a program and expand paid family leave for employees.
