Employers offering their workers paid family leave in 2026 will generally be able to claim a business tax credit. Following changes by the One Big Beautiful Bill Act, your organization can calculate the credit based on 12.5% to 25% of actual wages paid to employees on leave for up to 12 weeks or of what you pay for a qualifying insurance policy. The premiums-paid method may appeal to employers that aren’t self-insuring or that have fewer employees. Note that if your state or local government mandates different leave policies, these laws affect the amount of paid leave required but not the calculation of the federal tax credit. Contact us for details.
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