The Tax Cuts and Jobs Act (TCJA) brought a new tax credit for employers who offer their employees paid family and medical leave. The employer is required to have a written policy in place that provides at least two weeks of paid qualified leave. The paid leave has to be provided to qualified employees and must allow for paid leave for the same reasons as FMLA (birth of a child, adoption, care for a spouse, child, or parent, serious health condition, etcetera).
While some employers may already offer some types of paid family leave, the tax credit itself is new and available to employers of all sizes. Even employers who previously had a policy in place would be wise to evaluate and confirm that they qualify for this particular tax credit.
Download our credit calculator to estimate the amount of the potential tax credit available for your company: