Paid Family and Medical Leave Credit Changes for 2026

There’s no federal law requiring employers to provide paid family or medical leave (unpaid leave is required only if there are 50 or more employees). But paying for such leave may entitle employers to a federal tax credit. New for 2026 is the ability to base the credit for providing paid leave to eligible employees through insurance. A draft of Form 8994 (with a revision date of December 2026) for this federal tax credit reflects this change. #IdeaoftheDay

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