Tax Credit for Employers Providing Paid Family and Medical Leave

We would like to remind you that eligible employers who provide paid family and medical leave to their employees during tax years 2018 and 2019 might qualify for the new business tax credit.

To claim the credit, eligible employers must have a written policy in place with certain requirements, including:

  • At least two weeks of paid leave to full-time employees (prorated for part-time employees), and
  • The paid leave must be at least 50 percent of the wages normally paid to the employee.

The credit is generally equal to 12.5 to 25 percent of paid family and medical leave for qualifying employees.

Additional information can be found on IRS website at https://www.irs.gov/newsroom/new-credit-benefits-employers-who-provide-paid-family-and-medical-leave

Be sure to let us know if you are offering this employee benefit so we can assist you with taking advantage of the tax credit.

Westbrook CPA