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May 19, 2023
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Paid Leave Bill Introduced – A Costly, Burdensome Mandate for Small Business
- New overall payroll tax of 0.7% to 1.0% on wages and salaries (up to Social Security tax cap) shared equally by employees and employers;
- Employers with 15 or more workers have to pay at least 50% of the tax (smaller employers would be exempt from the employer share);
- Allowing self-employed people to voluntarily participate and pay 50% of the tax;
- Allowing employees and self-employed people to take 12 weeks of leave annually;
- Allowing leave to be taken in increments as small as 8 hours; and,
- Uses consisting of family and medical leave, safe leave, and “exigency” leave for family members of those with active military duty status.
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