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.