What is the Section 45S employer paid leave credit?
The Section 45S paid family leave credit is a federal employer tax credit covering 12.5% to 25% of wages paid during qualifying family or medical leave. OBBBA Sec. 70304 made the credit permanent starting in 2026. Qualifying employees must have one year of tenure and compensation below approximately $96,000. Employers must have a written policy with anti-retaliation protections. Combine with Employee achievement awards for a complete employer tax benefit package.
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