2022-42: Wildfire settlement exclusion and paid supplemental sick leave bills enacted

Yesterday the Governor signed legislation that:

  • Excludes from California taxable income any amounts received by wildfire victims from settlement claims resulting from the 2015 Butte Fire, the 2017 North Bay Fires and Thomas Fire, and the 2018 Woolsey and Camp Fires (AB 1249 and SB 1246);
  • Extends the mandate for employers with more than 25 employees (both full and part-time) to provide up to 80 hours of COVID-19 supplemental paid sick leave through December 31, 2022 (the mandate was previously scheduled to expire on September 30, 2022) (AB 152); and
  • Authorizes California Small Business and Nonprofit COVID-19 Supplemental Paid Sick Leave Grants of up to $50,000 to qualified businesses and certain nonprofits that have between 26 to 49 employees to compensate them for their costs of providing the COVID-19 supplemental paid sick leave to their employees during 2022. (AB 152) Like the earlier COVID-19 Relief Grants of up to $25,000 provided by the state, these grants are “excludable” from California gross income. However, the legislation does not allow for expenses paid with these grants to be deducted.

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