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🏥👶 Paid Family Leave Tax Credit May Soon Be Permanent – Here’s What Employers Should Know 👶🏥

🏥👶 Paid Family Leave Tax Credit May Soon Be Permanent – Here’s What Employers Should Know 👶🏥

The Employer Credit for Paid Family and Medical Leave (IRC §45S) has been an underused but powerful incentive for businesses offering paid leave — and it’s about to get a serious upgrade.

🔹 Current Credit (through 2025):
Employers can claim a 12.5%–25% tax credit for wages paid to qualifying employees during family and medical leave.

But here’s what’s on deck for 2026:
✔️ The credit becomes permanent
✔️ 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 §45S 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