Employer Credit for Paid Family and Medical Leave (45S) Article

Starting in 2026, the One Big Beautiful Bill Act (OBBBA) makes the Section 45S tax credit permanent, expands eligibility, allows credit for insurance premiums, and integrates state-mandated leave into policy compliance—though not into credit calculations. Employers should reassess their leave policies to maximize tax benefits under the new rules.

Source: KPMG report: OBBBA changes to section 45S employer credit for paid family and medical leave

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