Family & Medical Leave Credit for Employers

Buried in the deep dark depths of the tax law passed in December 2017 was a great little benefit for those employers that are offering paid family or medical leave to workers annually. To be eligible, you must meet these requirements:

  • You (the employer) must have a written policy that requires at least 50% pay for the leave (and, of course, you must have paid the leave per policy)
  • The employee must earn less than $72,000 per year, and have been employed by you for at least one year
  • Leave must be for benefits that aren’t required by law, such as the below:
    • Serious health conditions, including pregnancy
    • Parental leave/bonding leave
    • Care of a family member with a serious health condition
    • Certain situations that arise when a family member is deployed abroad on active military duty
  • The credit is available for 2018 and 2019, and ranges 12.5%-25%, based upon percentage of full wage paid, and is available for up to 12 weeks of paid leave. 
Paid-Family-Leave Credit
image credit: www.paydayonesource.com

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