Employers who pay employees when they take time off for family and medical purposes may now qualify for a tax credit.
A couple quick examples include taking time off after the birth of the employee’s own child and/or taking time to care for a spouse, parent or child with a serious health condition. For employers, paying employees during these times can be a worthwhile investment. The Employer Credit for Paid Family and Medical Leave is based on wages paid to qualifying employees while on family and medical leave, and is subject to certain conditions.
When employees can take time to give care and be healthy themselves, employers may win their loyalty and with that, a competitive edge. And, capturing tax credits reduces tax bills.