The Kentucky Association of Counties

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The Kentucky Association of Counties

Covid-19 Newsroom

NACo launches effort to make counties eligible for paid leave payroll tax credits

The National Association of Counties has launched an initiative to develop legislation that would make state and local governments eligible for emergency paid leave payroll tax credits.

The Association is actively seeking co-sponsors for bipartisan federal legislation to support state and local governments facing unprecedented fiscal pressures due to the outbreak of COVID-19. The legislation would make state and local governments eligible for payroll tax credits for emergency paid sick and family leave.

The Families First Coronavirus Response Act (P.L. 116-127) requires public employers to provide paid sick and family leave, yet the law excludes these same employers from receiving payroll tax credits made available to private employers.

This legislation would remove this exclusion to help state and local governments cover the costs associated with these programs. Specifically, the bill would strike Sec. 7001(e)(4) and Sec. 7003(e)(4) from P.L. 116-127 and provide much needed assistance to state and local governments experiencing economic difficulties during this public health crisis.

The deadline to become an original cosponsor is Monday, April 13 at 12:00 PM.