--- title: Employers Who Provide Paid Family and Medical Leave Might Qualify for a Credit to Reduce Taxes description: If your company provides paid family and medical leave to your employees, you might qualify for a credit that can reduce the taxes you owe. image: https://www.huntercpa.com/hubfs/Images/Images/Employers-Who-Provide-Paid-Family-and-Medical-Leave.jpeg --- [![huntercpa-logo-62020](https://www.huntercpa.com/hs-fs/hubfs/Images/huntercpa-logo-62020.png?width=250&height=130&name=huntercpa-logo-62020.png "huntercpa-logo-62020")](https://www.huntercpa.com) - [Planning](https://www.huntercpa.com/articles/topic/planning) - [Design Engineers](https://www.huntercpa.com/articles/topic/design-engineers) - [Professional Services Firm](https://www.huntercpa.com/articles/topic/professional-services-firm) ## [Becoming a Top Engineering Firm – Zoom Like a Rocket Ship!](https://www.huntercpa.com/articles/becoming-a-top-engineering-firm-zoom-like-a-rocket-ship) **Lewis Hunter** | Jul 23, 2020 7:15:00 AM A professional service firm such as an engineering design firm or construction engineering and inspection firm can be thought of as a rocket ship. Looking at the business as a rocket ship, it gets easier to remember and share the elements of developing a successful business. Like a rocket ship a business has two basic parts, the engines that power the ship, and the guidance systems to set course. Our rock ship has five engines and four guidance systems. Thinking back to when you first started your firm, if you did not go through the checklist you see below formally, you did so informally. - [Taxes](https://www.huntercpa.com/articles/topic/taxes) ### [Employers Who Provide Paid Family and Medical Leave Might Qualify for a Credit to Reduce Taxes](https://www.huntercpa.com/articles/employers-who-provide-paid-family-and-medical-leave-might-qualify-for-a-credit-to-reduce-taxes) - [**](https://www.facebook.com/sharer/sharer.php?u=https%3A%2F%2Fwww.huntercpa.com%2Farticles%2Femployers-who-provide-paid-family-and-medical-leave-might-qualify-for-a-credit-to-reduce-taxes) - [**](https://www.twitter.com/share?url=https%3A%2F%2Fwww.huntercpa.com%2Farticles%2Femployers-who-provide-paid-family-and-medical-leave-might-qualify-for-a-credit-to-reduce-taxes) - [**](http://www.linkedin.com/shareArticle?mini=true&url=https://www.huntercpa.com/articles/employers-who-provide-paid-family-and-medical-leave-might-qualify-for-a-credit-to-reduce-taxes) [All Posts](https://www.huntercpa.com/articles/all) # Employers Who Provide Paid Family and Medical Leave Might Qualify for a Credit to Reduce Taxes - [Tweet](https://twitter.com/share) ![Employers-Who-Provide-Paid-Family-and-Medical-Leave](https://www.huntercpa.com/hs-fs/hubfs/Images/Images/Employers-Who-Provide-Paid-Family-and-Medical-Leave.jpeg?width=1200&name=Employers-Who-Provide-Paid-Family-and-Medical-Leave.jpeg) If your company provides paid family and medical leave to your employees, you might qualify for a credit that can reduce the taxes you owe. It’s called “The Employer Credit for Family and Medical Leave.” Here are some facts about the credit to help you learn whether you can claim it. ### **To be eligible, an employer must:** - Have a written policy that [meets several requirements](https://www.huntercpa.com/hubfs/Docs/HA-Content/Employer-credit-for-paid-family-and-medical-leaven-18-71.pdf). - Provide: ### **Applicable dates:** It’s available for wages paid in taxable years beginning after Dec. 31, 2017, and before Jan. 1, 2020. ### **The amount of the credit:** The credit is generally equal to 12.5% to 25% of paid family and medical leave for qualifying employees. The percentage is based on how much employers pay each employee for family and medical leave. ### **Qualifying leave:** The leave can be for any or all the reasons specified in the Family and Medical Leave Act: - Birth of an employee’s child. - Care for the child. - Placement of a child with the employee for adoption or foster care. - To care for the employee’s spouse, child, or parent who has a serious health condition. - A serious health condition that makes the employee unable to perform the functions of their job. - Any qualifying emergency due to an employee’s spouse, child, or parent being on covered active duty in the Armed Forces. This includes the taxpayer being notified of an impending order to covered active duty. - To care for a service member who is the employee’s spouse, child, parent, or next of kin. ### **Claiming the credit:** To claim the credit, employers will file two forms with their tax return. These are [Form 8994](https://www.irs.gov/forms-pubs/about-form-8994), Credit for Paid Family and Medical Leave, and [Form 3800](https://www.irs.gov/forms-pubs/about-form-3800), General Business Credit. More Information about other [Tax Reform Provisions that Affect Businesses here >](http://links.govdelivery.com:80/track?type=click&enid=ZWFzPTEmbXNpZD0mYXVpZD0mbWFpbGluZ2lkPTIwMTkwODIyLjkzNjI4NTEmbWVzc2FnZWlkPU1EQi1QUkQtQlVMLTIwMTkwODIyLjkzNjI4NTEmZGF0YWJhc2VpZD0xMDAxJnNlcmlhbD0xNjc4MjQ1MiZlbWFpbGlkPWFza0BtaWNoYWVsaGFydHplbGwuY29tJnVzZXJpZD1hc2tAbWljaGFlbGhhcnR6ZWxsLmNvbSZ0YXJnZXRpZD0mZmw9Jm12aWQ9JmV4dHJhPSYmJg==&&&131&&&https://www.irs.gov/newsroom/businesses) This is only one of the many tax credit opportunities and emphasized the importance of tax planning. We welcome your call for any tax planning questions you may have. **[Take a moment to  contact us!](https://www.huntercpa.com/contact-us)** --- If you are interested in learning more about the opportunities from tax reform, be sure to [download the whitepaper](https://www.huntercpa.com/irs-tax-reform-whats-new-for-your-business-pub5318): [![tax-reform-white-paper](https://www.huntercpa.com/hs-fs/hubfs/Images/Images/tax-reform-white-paper.jpg?width=1728&name=tax-reform-white-paper.jpg)](https://www.huntercpa.com/irs-tax-reform-whats-new-for-your-business-pub5318) ![Hunter & Associates](https://www.huntercpa.com/hubfs/Images/hunterassociateslogob.png) ###### ABOUT THE AUTHOR | Hunter & Associates At Hunter & Associates, P.A., we are driven by the belief that within each of us is the power to achieve greatness. This belief is not just for us, but for our clients as well. In fact, our client roster includes a great many small businesses with aspirations for greatness. We have even been recognized as an award-winning firm for client diversity. ![](https://cdn2.hubspot.net/hub/2558854/hubfs/DreamPack/letter%20Icon.png?t=1496817989590&width=86&name=letter%20Icon.png) ## Subscribe Subscribe now and receive regular updates! ** #### Subscribe Below! 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Loo... [Read more](https://www.huntercpa.com/articles/becoming-a-top-engineering-firm-zoom-like-a-rocket-ship) - [Business Transition Planning](https://www.huntercpa.com/articles/topic/business-transition-planning) - [Exit Planning](https://www.huntercpa.com/articles/topic/exit-planning) - [Sell Business](https://www.huntercpa.com/articles/topic/sell-business) ## [Selling Your Business? The Next Buyer Could Already Work for You](https://www.huntercpa.com/articles/selling-your-business-the-next-buyer-could-already-work-for-you) #### There is nothing easy about deciding to sell the company you have poured much of your time and money into over the years. Your business was the center... 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