Hill staffers who are District residents could see a new line on their tax forms if D.C.’s proposed paid leave plan becomes law: a special tax for residents whose employers, such as the federal government, are not paying into D.C.’s Family and Medical Leave Fund.
The additional tax would not be more than 1 percent of a individual's salary, according to Jeffrey Hayes, a study director with the Institute for Women's Policy Research, who has studied the costs and benefits of paid leave for workers, employers and communities. Hayes added that the proposal anticipates contributions will drop below 1 percent once the program is up and running, and that evidence suggests it is possible to have a self-sustaining family and medical leave insurance system at that level. Contrary to initial information provided about the nascent proposal, District residents who are employed by the federal government, including on Capitol Hill , do not need to opt-in to receive the 16 weeks paid family and medical leave. Rather, up to 1 percent of a district resident’s income would be collected as part of an income tax calculation if their employer, such as the federal government, is not making a contribution.