New tax credit rewards companies that offer paid FMLA leave

Employers that offer paid family and medical leave may get an unexpected tax benefit next year at tax time. The tax reform law that passed earlier this year contains a little-noticed tax credit for employers that provide qualifying types of paid leave to their fulland part-time employees. The credit is available to any employer, regardless of size, if:

  • It provides at least two weeks of qualifying leave annually for employees who have been with the company for at least 12 months; and
  • The paid leave is at least 50% of the wages normally paid to the employee.