Imagine bringing a new child into the world, knowing you’ll have to choose between caring for them or keeping your job. For millions of working parents in the U.S., that’s the reality. Unlike most other developed countries, America has no federal guarantee for paid family and medical leave (PFML). Paid parental leave is one of the most highly desired and impactful policies available to today’s workforce, yet available options are very limited. Without a federal paid leave program, employers are responsible for providing paid leave, which is difficult for small and medium-sized employers to fund. That’s why we’re advocating for the PFML Tax Credit extension to expand access to paid parental leave, and we invite you to join us.
The Paid Family and Medical Leave Tax Credit Extension and Enhancement Act (S.400 for the Senate and H.R.996 for the House) is a bipartisan bill introduced in the U.S. Senate on January 30, 2024, by Senators Deb Fischer (R-NE) and Angus King (I-ME), with an equivalent bill introduced in the House. Its goal is to provide tax credits for paid parental and family leave insurance, critical to expanding access to paid parental leave.
This proposed legislation would expand and extend a tax credit that covers up to 25% of the cost of offering paid leave. For small businesses in particular, this could be transformational to helping level the playing field. We know paid parental leave helps families stay healthy and financially secure and this tax credit makes it easier for companies of all sizes, not just large corporations, to support working parents and caregivers.
At Parento, our mission has always been clear: make paid parental leave more affordable, accessible, and equitable for all working families. We were founded on the belief that insurance is the best mechanism to make child bonding leave widely available, especially for small and mid-sized businesses (SMBs) that often want to offer it but struggle with the cost Today, budget concerns are the number one reason businesses hesitate to offer paid leave. State-run programs provide some coverage, but only in a handful of states. That’s why the PFML Tax Credit Extension and Enhancement Act (S.400/H.R.996) is so important. But to make this a reality, we need your voice.
Businesses and Americans will benefit immensely from the extension of this tax credit by making paid parental and family leave more affordable and accessible. But these policies won’t move forward without the voices of people like you who know firsthand how critical paid family leave is. Here’s how to get started advocating and showing lawmakers that paid parental leave is a fundamental need for working families and businesses across the country.
First, identify your House Representatives and Senators. Use the list in the Toolkit, or enter your address here: https://www.congress.gov/members/find-your-member. Here are a few helpful tips for contacting them:
Help bring awareness to this Tax Credit by sharing that you support the tax credit, or share your own story. Personal experiences resonate! Whether it's through social media, local news, or community groups, sharing how paid leave (or the lack of it) has impacted you or your family can make a big difference. You can also share this toolkit. Here are a few talking points:
Without federal action, many families face financial instability during some of life’s most important moments, and businesses struggle to provide consistent benefits across their workforce. To help you take action, we created the Power Paid Leave Forward: An Advocacy Toolkit for Expanding Access for Paid Parental Leave. Whether you are a small business owner, HR leader, working parent, or advocate, you’ll find ready-to-use templates, talking points, and guidance to reach out to policymakers who need to hear from you.
Thank you for standing with us and championing the future of paid family and medical leave. If you’re interested in learning how you can bring paid parental leave to your business, chat with our team!
