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District of Columbia Enacts New Payroll Tax to Fund Paid-Leave System

On February 17, 2017, the District of Columbia enacted the Universal Paid Leave Amendment Act of 2016 (UPLAA), which will impose a 0.62 % payroll tax on employers to fund a paid-leave system for individuals employed in the District. While the tax will not have to be paid by employers until July 1, 2019, the passage of the UPLAA is a significant development that will need to be considered by businesses that employ personnel in the District, both from a financial and administrative perspective.