New Tax Credit For Small Business Owners

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Image of small business owner hanging up open sign in shop

Starting in 2018, employers can take advantage of a new credit for paid family and medical leave created by the Tax Cuts and Jobs Act.

Employers may claim the credit based on wages paid to employees while they are on leave for the birth of a child, a serious health condition, and other family and medical events.

The Employer Credit for Paid Family and Medical Leave is a percentage – ranging between 12.5% and 25% – of the amount of wages paid to an employee while on family and medical leave for up to 12 weeks.

The credit is set to expire after the 2019 tax year, so keep this in mind for long-term planning.

 

Have questions about this credit? Let’s talk!