Employers who provide paid Family and Medical Leave may qualify for a new federal tax credit included in the Tax Cuts and Jobs Act. This credit of 12.5% (or more) of paid leave wages is subject to meeting certain criteria including, but not limited to, the following:
- Providing paid leave for at least two weeks for qualifying full-time employees and a pro-rated amount for qualifying part-time employees
- Paying leave of 50% of wages or more
- Having a written policy specific to the qualifying leave
It is important to note that vacation, personal leave and medical/sick leave do not qualify; nor does leave that is mandated by law.
For details about this tax credit including the definition of a qualifying employee, calculation of the annual allowable amount, and how to qualify – please see our Compliance Bulletin below.
If you have any questions, contact your S.S. Nesbitt Benefits Consultant.
This newsletter has been prepared and published for informational purposes only and is not offered or intended to be construed as legal advice. For legal advice, contact an attorney.