Jul 03, 2024
Most workers have access to unpaid, job-protected leave through the federal Family and Medical Leave Act. The FMLA, which became law in 1993, was intended to offer some stability for employees who needed to take time away from work to deal with a major medical issue. Previously, there had been no federal protection for workers. The FMLA guarantees up to 12 weeks of leave, but the time is unpaid.
Companies with fewer than 50 employees are exempt from the FMLA. Many states have thus decided to require employers to provide employees with some income while they are out on leave. Most of this funding is paid through taxes collected from the employee, the employer or both; it is typically remitted to the state by the employer.
Most current paid leave is restricted to extended time off for an employee to bond with a new child or recover from a serious illness.
Trends to watch
As their workforces are increasingly mobile and diverse, employers are expanding existing programs and exploring alternative models. Among paid leave trends to watch is paid leave for any reason. In the future, paid leave might extend to organ donation, family bereavement, and miscarriage and other pregnancy loss. In Illinois, Maine and Nevada, private employers must offer five days paid time off for any reason. California increased its offer from three days to five.
It's not surprising then that the majority of U.S. employers — 84% — plan to add to their paid leave programs within the next two years. A WTW survey ("Leave, Disability and Time-off Trends") says that employers are investing in their leave programs as a way to attract and retain workers, recognizing the importance of flexible leave programs that accommodate employees' evolving work styles.
Among changes that WTW sees coming:
One consideration is that it is often hard for large employers operating in multiple states to create compliant PTO programs because differences in state laws make compliance and administration particularly challenging.
Be sure to reach out to your accountant or payroll service provider to see how they can help make sure you're getting paid leave deductions right. Constant administration, monitoring, assessment, coordination, communication and proactive action are essential.
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Jul 03, 2025
When you provide workers with additional benefits on top of their regular pay, some may be taxable. As the rules can get complicated, it pays to familiarize yourself with the requirements. Read through for an overview of which benefits are taxable.
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Disputes over unpaid work time often arise from tasks performed outside official hours — for example, answering emails, traveling between jobsites or changing into work clothes. Employers must understand when these activities count as compensable work. Read through to learn how exempt and nonexempt statuses affect wage obligations.
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Have you heard of key person insurance? This is a type of life insurance policy that may positively benefit your business’s continuity, though it has both tax and financial implications. Read through to see whether key person insurance is right for your company.
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Do you have questions about the tax treatment of payments for part-time and seasonal help? These employees are subject to the same rules that apply to all employees — with some twists. Read through for some help on tax rules regarding part-time and seasonal help.
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