Blog
Blog
๐ฅ๐ถ Paid Family Leave Tax Credit May Soon Be Permanent โ Hereโs What Employers Should Know ๐ถ๐ฅ
๐ฅ๐ถ Paid Family Leave Tax Credit May Soon Be Permanent โ Hereโs What Employers Should Know ๐ถ๐ฅ
The Employer Credit for Paid Family and Medical Leave (IRC ยง45S) has been an underused but powerful incentive for businesses offering paid leave โ and itโs about to get a serious upgrade.
๐น Current Credit (through 2025):
Employers can claim a 12.5%โ25% tax credit for wages paid to qualifying employees during family and medical leave.
But hereโs whatโs on deck for 2026:
โ๏ธ The credit becomes permanent
โ๏ธ Employers can choose to apply it:
- (a) based on wages paid during leave, or
- (b) toward paid family leave insurance premiums
This flexibility could make ยง45S significantly more accessible, especially for small and midsize businesses trying to offer meaningful benefits in a competitive hiring landscape.
#TaxCredits #FamilyLeave #IRC45S #SmallBusiness #EmployeeBenefits #CPA #PaidLeave #WageCredits #BusinessTaxPlanning #WorkplacePolicy
