New California Legislation Impacting Small Employers
California Governor Gavin Newsom recently signed several new bills into law that impact small businesses. To ensure compliance, make sure you and your clients are familiar with these new laws:
- SB 1383 significantly expands employee job-protected leave under the California Family Rights Act and New Parent Leave Act. Effective January 1, 2021, the new law requires California employers with as few as five employees (previously 50) to provide family and medical leave to their employees. The employer must maintain and pay for the employee’s coverage under a group health plan for the duration of the leave at the level and under the coverage that would have been provided if the employee had continued in employment continuously for the duration of the leave.
The new law also expands the definition of “family member” to include the employee’s children (including adult children, whether dependents or not), spouse, parents, siblings, grandparents, grandchildren, and domestic partners. (Fisher Phillips)
- AB 1577 allows small businesses to exclude Paycheck Protection Program (PPP) loans from gross income for state taxes. Additionally, the measure would deny businesses the ability to deduct expenses from those forgiven loans. (Law 360)
- SB 1447 allows businesses with fewer than 100 employees to claim a tax credit of $1,000 for every full-time employee hired by the end of November, up to $100,000. (Bloomberg Tax)
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