🏥👶 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

Video Script
Under new tax law, the Paid Family Leave Tax Credit is here to stay, and employers should pay attention. This means businesses can claim a tax credit of 12.5% to 25% on wages paid during family and medical leave. Here’s the game-changer: employers will get flexibility. You’ll be able to apply the credit either to wages paid during leave or to premiums for paid family leave insurance. This shift could make the credit far more accessible, especially for small and midsize companies competing for top talent. Smart planning today could mean big savings tomorrow. This has been a tax saving tip from Accounting Solutions. Book a time to learn more.

Disclaimer: This content is provided for educational purposes only and is not legal, tax, accounting, or financial advice. Every situation is unique, so consult your own attorney, CPA, or financial advisor before making decisions based on this information.