Tax Credit Enhancement for Employers Providing Paid Family and Medical Leave.
This law extends and enhances the tax credit available to employers who offer paid family and medical leave benefits. The changes aim to incentivize more businesses to provide these crucial benefits, directly supporting employees who need time off for care or medical reasons. Employers gain flexibility, including the option to calculate the credit based on insurance premiums paid, rather than just wages paid during leave.
Key points
Employers can now choose to calculate the tax credit based on insurance premiums paid for leave policies, not just the wages paid to employees on leave.
The minimum employment period required for an employee to qualify for the credit is reduced from one year to six months (at the employer's discretion).
The credit cannot be claimed for leave mandated or funded by state or local governments.
Federal agencies (SBA and IRS) are required to conduct outreach to inform small businesses about the availability and requirements of this credit.
Expired
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