Eligible employers who provide paid family and medical leave to their employees during tax years 2018 and 2019 might qualify for a new business tax credit. This new employer credit for family and medical leave is part of tax reform legislation passed in December 2017. To be eligible, an employer must:
- Have a written policy that meets several requirements, as detailed in Notice 2018-71.
- At least two weeks of paid family and medical leave to full-time employees.
- A prorated amount of paid leave for part-time employees.
- Pay for leave that is at least 50 percent of the wages normally paid to that employee.
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