Page 13 - Metro Record April 2021 filea

THE METRO RECORD - APRIL 2021 13
Narrative is Everything - Control It LEGISLATION

Senate Passes COVID-19 Emergency Paid Sick Leave

Comprehensive bill also includes updates to Unemployment Insurance and

Paycheck Protection Program loans, extends tax filing deadline

(BOSTON–03/19/21) Ten weeks many members of the Senate who Under this legislation, employees long-term costs of both loans and "With the tax filing season upon
after Senate President Karen E. reached out to me directly and are eligible for up to five days of bonds. Bonding our trust fund us, the inclusion of language from
Spilka promised swift action on provided invaluable input on the paid leave, at their regular rate of debt is necessary now to avoid myPPP loan forgiveness billwill
COVID-19 Emergency Paid Sick bill, including Senators Jehlen, pay, capped at $850 per week— short term shockingly high tax ensure that thousands of
Leave, the Massachusetts State Lewis and Lesser. Time is of the which is the same maximum increases during a recession. But it businesses won't be hit hard with a
Senate passed a comprehensive essence, so I look forward to this weekly benefit provided for in the will cost employers more over the significant, potentially
bill that would guarantee five paid comprehensive relief package Massachusetts Paid Family long run. A balanced commission insurmountable, tax burden
days off for every employee in the becoming law." Medical Leave (PFML) law. can help find a long term, amidst the COVID-19 pandemic,"
Commonwealth. The bill also seeks Employers covered by federal responsible and fair way to support stated Senator Eric P. Lesser (D-
to stabilize the state's "I have seen firsthand the legislation providing for paid leave our unemployment system." Longmeadow), Senate Chair of the
Unemployment Insurance (UI) devastating impact COVID-19 has will have the cost of providing such Joint Committee on Economic
trust fund, provides substantial tax had on businesses, families, and leave paid for through the federal The bill also provides much- Development and Emerging
relief to businesses and workers, the economy in the Hampden tax credit. For all other employers, needed UI-related relief to Technologies. "Over 140,000
and delays the state tax filing District," said Senator Adam the bill creates a $75 million businesses and employees. For businesses across the
deadline. Gomez (D-Springfield)."This COVID-19 Emergency Paid Sick businesses, the bill prevents Commonwealth have received
legislation will provide relief for Leave Fund to reimburse eligible increases in the UI rate schedule Paycheck Protection Program
"In January, I declared that we business owners and individuals employers for providing their for 2021 and 2022, providing loans from the Small Business
must act quickly to provide our during tax filing season. I hope that employees with emergency paid employers with needed stability Administration, and have been
workers with COVID-19 these provisions, as well as the sick leave. The state requirement and relief as the Commonwealth asked to be patient, flexible, and
Emergency Paid Sick Leave, and extension of the tax filing deadline, for paid leave would extend until continues to recover. For resilient in order to keep their
today the Senate has delivered on provide families in the state some September 30, 2021 or until the unemployed workers, some lights on. It's unfair for our state to
that promise," stated Senate breathing room so that they can fund is exhausted. navigating the UI system for the hit them with an unexpected tax.
President Karen E. Spilka (D- get back on their feet. I am grateful first time, the bill waives tax This is a critical measure for
Ashland). "I am proud of the for the leadership of Senate The COVID-19 public health crisis penalties on UI benefits in 2020 speedy economic recovery. I am
collaboration that brought about President Spilka and Chairman has created a surge of pandemic- and 2021. It also mirrors federal grateful to Senate President Karen
this agreement, which will provide Rodrigues, as well as the two related unemployment claims, tax provisions included in the Spilka, Senate Ways & Means
needed relief for both businesses amendments I cosponsored, filed which has depleted the recent American Rescue Plan and Chair Michael Rodrigues, and our
and workers. I am grateful to by Senator Jehlen." Commonwealth's unemployment excludes $10,200 of partners in the House for
Senators Rodrigues, Lewis, Lesser trust fund, necessitating unemployment compensation prioritizing our small businesses,
and Jehlen for their contributions To help protect employees on the borrowing from the federal received by an individual with a and for including provisions to
to this legislative package, and I front lines, and prevent the further government to pay out those household income of less than surge immediate relief to
am also thankful for our partners spread of COVID-19, this bill benefits. The bill therefore 200% of the federal poverty level unemployed and sick workers."
in the House, especially Speaker ensures that all workers in authorizes up to $7 billion worth of from gross income for tax
Mariano and Chair Michlewitz, for Massachusetts have access to paid borrowing to replenish the UI trust purposes, putting up to $500 into Finally, to align state tax deadlines
their willingness to work quickly to leave if they are unable to work as fund and to repay all federal UI the hands of lower income with federal tax deadlines, the bill
get this done. As we continue to a result of a COVID-19 infection or loans, funded by an employer unemployed individuals. This extends the Commonwealth's tax
recover from the COVID-19 a quarantine order. Significantly, charge, and creates a separate would apply to individuals making filing deadline from April 15, 2021,
emergency, these measures will given the state's push to increase time-limited employer assessment $25,760 or under, or a total to May 17, 2021. This tax flexibility,
provide stability to our economy, vaccination rates, employees will to repay interest on federal UI income of $53,000 for a family of similar to a delay authorized last
and keep workers safe." be able to use this paid leave time loans by their due dates to ensure four. year by the Legislature, will
to take time off to receive the the solvency of the UI trust fund. provide stability and ensure
"As we slowly emerge from the vaccine. In addition, the legislation Further relief for businesses comes residents have time to prepare and
COVID-19 pandemic, I am proud provides for leave if the worker The Senate accepted an in the form of a change in state tax file taxes as the state continues to
of the collective action taken by the needs time to care for a family amendment from Senator Patricia policy regarding PPP loans. In weather the impacts of the COVID-
Senate and House to pass this member unable to work because of D. Jehlen (D-Somerville) to Massachusetts, corporate excise, 19 pandemic.
comprehensive bill that strikes a COVID. establish a commission on the but not personal income tax, is tied
balance to help businesses, solvency of the UI trust fund to to the current federal Internal The bill now goes to the House for
workers, and jumpstart an "No worker should have to choose pursue long-term solutions for Revenue Code. As a result, further action.
equitable recovery for our between staying home if they risk solvency. The commission Massachusetts' tax law treats
Commonwealth," stated Senator spreading COVID-19 and earning a convenes a balance of business and forgiven Paycheck Protection
Michael J. Rodrigues (D- paycheck to support their family, advocacy interests with the Chairs Program loans differently
Westport), Chair of the Senate but unfortunately this impossible of the Joint Committee on Labor depending on whether the
Committee on Ways and Means. choice faces many workers who do and Workforce to report on recipient small businesses is
"With more people getting not have adequate job-protected changes required to ensure a organized as a pass-through entity
vaccinated by the day, and our paid sick leave during this solvent trust fund. or a c-corp. This bill conforms to
economy re-opening, this bill will pandemic, especially low-income federal law and ensures that all
bring much needed relief to small essential workers," saidSenator "The commission on the long-term forgiven PPP loans, advance
businesses, keep our essential Jason Lewis (D-Winchester). "I'm solvency of the Unemployment Economic Injury Disaster Loans
front line workers safe, and target very pleased that emergency paid Insurance Trust Fund is extremely and payments made under the
tax relief to lift up low-income sick time is included within this important," stated Senator Jehlen. federal Small Business Debt Relief
families who lost jobs during this legislation, and grateful to my "Massachusetts' fund is rated the are excluded from gross income,
pandemic. I want to thank Senate colleagues, the Raise Up coalition fifth worst in solvency in the regardless of how the business is
President Spilka for her and business leaders for working country. Our program solvency organized.
leadership, Speaker Mariano and collaboratively to make this was less than half the federal
Chair Michlewitz for their ongoing possible." standard which would allow us to
partnership, and especially the get interest free loans, avoiding the