There’s a new business tax credit that partially reimburses employers for providing paid family and medical leave for select employees. But small businesses should be break.informed before they try to use this new Family and Medical Leave Act (FMLA) tax
Basics of the new credit
Employers who provide at least two weeks of paid family and medical leave to employees who earn $72,000 a year or less can claim the FMLA credit to offset some of the cost of that paid leave . some details:
The credit ranges between 12.5 percent to 25 percent of the cost of the leave, depending on whether it pays 50 percent salary to a full salar
At least 50 percent of salary must be paid during the leave for employers to claim the credit
Employees must have worked for at least a year.
Up to 12 weeks of leave are eligible for the credit.
The $72,000 salary cap in 2018 will rise with inflation every year.