Employers Receive Tax Credit For Providing Employees Family and Medical Leave

~ Author – Kaitlyn Krinock, Deluzio & Company, Staff Accountant I ~

The 2017 Tax Cuts and Jobs Act provides a new tax credit to employers who provide at least two weeks of paid family and medical leave at 50 percent of wages to qualified employees in tax years 2018 and 2019.

You must have a written policy in effect that satisfies a few requirements to claim the credit. In order to qualify in 2018, the policy needs to be in effect by December 31, 2018.

The credit is based on a minimum of 12.5 percent (maximum of 25 percent) of qualified wages paid while an employee is on leave. Additionally, the qualified employee’s wages are subject to limitations and there are length of service requirements.

Please contact our office at your earliest convenience to discuss the credit and the written policy requirement.