Providing extended time off and support for your employees to focus on their health and family may be part of your business culture, but it could also help you increase your cash flow and reduce federal income tax liability.
Businesses that voluntarily provide a paid family and medical leave benefit to employees could be eligible for the employer-paid family and medical leave tax credit—IRC Section 45S—a nonrefundable credit that may be used to offset federal income tax.
Determining your eligibility and accurately calculating and claiming the credit can be a complex process. Confidently pursue the credit and put money back into your business with guidance from our professionals.
To claim the credit, your business and employees who take advantage of paid leave must meet certain requirements.
Your organization must have policies in place that provide a minimum of:
Policies must also include leave that covers one or more of the following:
Employees who use leave programs must meet at least the following criteria:
Credit calculations are based on the percent of wages paid during family and medical leave and can’t be calculated with the same wages used to calculate another general business credit.
Depending on the percent of wages your business pays during an employee’s leave, you may be eligible for the following credit amounts.
Using the industry-leading digital tool MaxCredits®, we’ll determine your company’s eligibility and guide you through each step of the claims process including:
Your engagement team will include professionals from a range of backgrounds—such as CPAs, attorneys with JD-LLM certifications, and enrolled agents—with deep experience analyzing, documenting, and helping businesses claim wage-based tax credits.
Engagements are customized to your unique needs while contextualizing how credits could impact and benefit your whole business.
In addition to calculating the family and medical leave credit, we can conduct a holistic survey of your business to determine if your business qualifies for other federal hiring credits.
Receive a preliminary estimate of your potential tax savings from the employer-paid family and medical leave tax credit by filling out a complimentary benefit estimate request form.
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