US to Expand Incentives for Employers Offering Paid Family Leave
The guidance lets employers claim the credit when they pay insurance premiums, a change the White House hopes to promote as a midterm-election win.
- On Wednesday, the U.S. Treasury Department issued new guidance expanding employer tax credits for paid family and medical leave, allowing businesses to qualify by paying insurance premiums instead of direct wages.
- This permanent expansion stems from the Working Families Tax Cuts legislation and President Donald Trump's One Big Beautiful Bill Act, relying on tax incentives to encourage voluntary business participation rather than federal mandates.
- Employers can now claim the credit for part-time staff working at least 20 hours weekly and employees with six months of service, with credits ranging from 12.5% to 25% of wages paid annually.
- Treasury Secretary Scott Bessent, House Speaker Mike Johnson, and Arizona Representative Juan Ciscomani are visiting Phoenix to promote the policy, rallying behind vulnerable incumbents like Ciscomani ahead of November's midterm elections.
- The United States remains the only 38-nation Organisation for Economic Co-operation and Development member without a federal leave requirement, though public comments on the new guidance are due by October 16, 2026.
12 Articles
12 Articles
Treasury Expands Pro-Family Incentives
The U.S. Department of the Treasury announced new guidance that expands incentives for employers to offer paid family leave for children and the ill. The new guidance, rooted in the Working Families Tax Cuts (WFTC), provides employers with greater incentives to “offer up to 12 weeks of paid leave,” the Treasury’s announcement read. “Employees may use the leave to recover from a serious health condition or to care for certain family members with …
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Treasury Expands Tax Credit to Encourage More Employers to Offer Paid Family Leave
New federal guidance broadens eligibility for a business tax credit covering paid family and medical leave, with the Trump administration seeking to increase access without ... The post Treasury Expands Tax Credit to Encourage More Employers to Offer Paid Family Leave first appeared on [your]NEWS.
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