New Tax Credit For Paid Family and Medical Leave

New Tax Credit For Paid Family and Medical Leave

As part of the Tax Cuts and Jobs Act passed in 2017, employers who provide paid family and medical leave during the 2018 and 2019 tax years may be eligible for additional tax credits.

Leave can be for any, or all, of the reasons in the Family and Medical Leave Act including:

  • Birth or care of an employee’s child
  • Placement of a child with an employee for adoption or foster care
  • Serious health condition that makes an employee unable to perform functions of their position
  • Any qualifying difficulty due to an employee’s spouse, child, or parent being on covered active duty – or having been notified of an impending call or order to covered active duty – in the Armed Forces
  • Care for a service member who is the spouse, child, parent or next of kin of the employee

For eligible employers, the credit applies to wages paid in taxable years after December 31, 2017 and before January 1, 2020. The credit is generally equal to 12.5 to 25 percent of paid family and medical leave for qualifying employees; however, special rules and limitations apply. For details, see Rudler PSC e-Tip New Tax Credit For Paid Family and Medical Leave.

Contact us today for to learn more about how you or your business can take advantage of this tax credit, or for assistance with changes brought by the Tax Cuts and Jobs Act taking effect in the 2018 tax season by calling (859) 331-1717.