New Haven Register (New Haven, CT)
New 0.5% payroll tax takes effect
Paid Family and Medical Leave Act funding begins in Conn.
“People are paying a premium, but it is also an investment, and if and when you need it, there is a big return.”
State Sen. Julie Kushner, D-Danbury, on the 0.5% payroll tax for paid family leave
A new 0.5 percent payroll tax for residents to help fund Connecticut’s Paid Family and Medical Leave program tops the list of new laws that took effect on Jan. 1.
Workers won’t be able to cash in on the program until at least January of 2022, when the administrating authority will begin making payments of up to 12 weeks for people, even enrolled freelancers and the self-employed, to care for loved ones, or themselves.
It’s among the small list of new state laws that took effect Jan. 1, including the six-year-long phase-out of taxes on pension and annuity incomes for many elderly residents.
Jan. 1 was the deadline for the state’s major utilities to report on their staffing response to Tropical Storm Isaias, which knocked out power for hundreds of thousands of people for several days, as state regulators investigate how to make United Illuminating and Eversource more accountable.
State Sen. Julie Kushner, D-Danbury, who as cochairman of the legislative Labor and Public Employees Committee with state Rep. Robyn Porter, D-New
Haven, was instrumental in the passage of the legislation, said in a Wednesday interview that if paid leave
was in place a few years ago, tens of thousands of people might have been
helped this year in the pandemic, which affected the health and employment status of tens of thousands, most notably those employed in the hospitality industry.
“The effects would have been huge and families would have been saved anxiety, stress and food insecurity,” said Kushner, a former regional laborunion leader recently elected to her second term in the General Assembly. Once funded, benefits will range from about $300 to $900 a week for people caring for newborns, ailing family members or themselves, while assuring that they will be able to return to their jobs after the leave.
“The value of having job retention can’t be underestimated,” Kushner said. “I think people recognize the importance of the paid-leave program. It was a major motivator for my run for the state senate. People are paying a premium, but it is also an investment, and if and when you need it, there is a big return.”
She said that while about 13,000 employers have registered with the authority, the self-employed and freelancers can also join in, with the obligation for a three-year commitment to the program. Businesses with one employee or more must have registered by Dec. 31.
Employees of companies with at least 75 workers have to provide up to 16 weeks of either paid or unpaid leave. Under federal rules on family leave, companies with 50 or more workers have to offer 12 weeks of paid or unpaid absence.
Another bill that originated in the legislative Labor Committee is the continued phase-out of taxes on retirees’ income under $75,000 for singles and $100,000 for couples. On Jan. 1, the percentage of their tax exemption increased from 28 percent, to 42 percent. By 2025, barring changes by state lawmakers, such retirement income for seniors will be tax-free, in the state’s attempt to make Connecticut more attractive for retirees.
"Simply stated, this puts money back in the hands of seniors who need it most," Kushner said.
State Rep. David Arconti, D-Danbury, co-chairman of the legislative Energy & Technology Committee, said the Jan. 1 deadline for the electric utilities to report on their staffing from the August storm will be contrasted with the active investigation by the staff of the Public Utilities Regulatory Authority.
The agency will then have six months to confirm a process for compensating customers for storm-related credits on monthly bills and for lost food and medicine after multi-day power outages.
“Because utilities are writing it, I expect them to show how the status quo is working for the ratepayers,” Arconti said in an interview. “The reason for the report is for us to have something to contrast with the PURA investigation, which will end in April. I am trying to get the business community to contribute to the public-comment section.” Arconi is hopeful that within the first few weeks after the legislature convenes on Jan. 6, lawmakers can work on any needed improvements to the bill, which was approved during the September special session of the General Assembly.”