10/16/2026
Good news for employers who offer paid leave.
The federal Paid Family and Medical Leave Tax Credit is now permanent, and the IRS just released new guidance (Notice 2026-28) on how to claim it.
Businesses that offer qualifying paid leave can earn a tax credit of 12.5% to 25% of wages paid for up to 12 weeks of family and medical leave per year.
What’s new starting in 2026:
✔️Employees qualify after just 6 months of service
✔️Part-time employees working 20+ hours/week now count
✔️You can claim the credit on PFML insurance premiums, not just wages
✔️State-mandated leave (like NY Paid Family Leave) can count toward eligibility
This is a great opportunity for small businesses to support their teams while saving at tax time.
Read the full guidance at IRS.gov (Notice 2026-28) for eligibility details, and talk with your tax advisor to see if this credit is right for your business