Did you know that Employers may claim a credit based on the wages they pay to qualified employees while these employees are on family and medical leave? To claim the credit, employers must have a written policy that meets certain requirements:
* Employers must provide at least two weeks of paid family and medical leave annually to all qualifying employees who work full time. This can be prorated for part time employees.
* The paid leave must be not less than 50% of the wages normally paid to the employee
A qualifying employee is anyone who:
* Has been employed for one year or more
* The employee had compensation for the preceding year that did not exceed a certain amount. For 2018, that amount is $72,000
For purposes of the credit, “family and medical leave” is for the following reasons:
* Birth of a child to care for the newborn
* Placement of a child with the employee for adoption or foster care
* To care for the employee’s child, spouse, or parent with a serious health issue
* A serious health issue of the employee
* Called to military duty
The credit is a percentage of the amount of the wages paid to the employee while on leave up to 12 weeks per year. The employer must reduce the deduction for wages by the credit. Call our office if there are questions.