Tax credit benefits employers providing paid family and medical leave
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.
- 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 IRS Tax Reform for Businesses page.