Tax credit benefits employers providing paid family and medical leave

 

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Updated: May 3, 2019

December 13, 2018

Under tax reform, employers providing paid family and medical leave might qualify for a tax credit.

Here are some facts about the credit.

An employer must have a written policy that provides:

  • At least two weeks of paid family and medical leave annually to full-time employees, prorated for part-time employees.
     
  • Family and Medical Leave pay that is at least 50 percent of employee’s wages.

Other facts:

  • For tax year 2019, the employee must earn $72,000 or less to qualify.
     
  • The credit ranges from 12.5 percent to 25 percent for qualifying employees.
     
  • Some employers are eligible to claim the credit retroactively.

For more information visit the Tax Reform for Businesses page.