More U.S. employers could have an incentive to provide paid family and medical leave for their employees.
The Treasury Department issued guidelines for a new business tax credit Monday as part of the Trump administration's Tax Cuts and Jobs Act.
It applies to the 2018 and 2019 tax years, and there are some restrictions.
Here's how it works: Employers can get a tax credit relative to the amount they would usually pay the worker while he or she is on leave for up to 12 weeks. That worker must make $72,000 a year or less. And the business needs to have a written leave policy and meet some other requirements.
During the leave, the employer has to pay the employee at least 50 percent of their usual wages. The more the employer pays during that period, the more tax credit it can receive.
The move aims to encourage more companies to offer paid leave time to workers for fulfilling family obligations. Those circumstances include a birth or adoption, caring for an immediate family member with a serious illness, having a serious health condition or an emergency related to a family member on active military duty.
The credit is set to expire in 2020.
