The Tax Cuts and Jobs Act created a federal tax credit for
employers that provide qualified paid family and medical leave to employees.
However, it’s subject to numerous rules and is only available for the 2018 and
2019 tax years. An eligible employer can claim a credit equal to 12.5% of wages
paid to qualifying employees who are on family and medical leave, if the leave
payments are at least 50% of the normal wages paid to them. For each 1%
increase over 50%, the credit rate increases by 0.25%, up to a maximum credit
rate of 25%. Contact us for more information.