Employers giving paid leave getting tax credits in new law
WASHINGTON (AP) — Employers who offer paid family and medical leave to their workers earning up to $72,000 a year can receive tax credits under the new tax law, the government has affirmed.
The Treasury Department issued guidelines Monday for the tax credit, which is available to employers for leave paid this year and next. The credit was part of the $1.5 trillion package of individual and corporate tax cuts that Republicans in Congress enacted and President Donald Trump signed into law in December. It expires in 2020.
The idea behind the credit was to encourage companies to offer paid time to their employees for family responsibilities, relieving some financial pressure. Under the guidelines, employers can get a tax credit equivalent to a percentage of the wages paid to employees while on leave.