Unlock the Paid Family Leave Credit Dont Leave Money on the Table
Автор: George Ghazarian, CPA
Загружено: 2025-11-13
Просмотров: 27
Описание:
Most contractors have never even heard of the Employer Credit for Paid Family & Medical Leave — but starting in 2026, this credit becomes permanent and gets expanded, making it one of the most valuable tax breaks available to construction businesses with employees.
In this episode, George breaks down exactly how the credit works, what’s changing, and how contractors can use it to retain good workers, offer better benefits, and cut their tax bill at the same time.
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Format
Intro
Hook: IRS will reimburse contractors for paid leave
What the credit is
What changes in 2026
Why contractors should care
Quick tax credit example
What to do next
Outro
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📌 Key Takeaways
✔ The IRS will reimburse you 12.5%–25% for paid family or medical leave
If you pay your crew while they take time off for:
• A new baby
• Medical recovery
• Caring for a family member
You can qualify for a federal tax credit on the wages you paid.
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✔ Starting in 2026, the credit becomes PERMANENT
No more temporary extensions. No more guessing whether Congress will renew it.
It’s locked in long-term — you can plan around it.
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✔ Two ways to qualify beginning in 2026
You can now claim the credit by either:
1️⃣ Paying your employees during leave (the current method), or
2️⃣ Paying premiums for a paid family leave insurance plan
This second option is huge for contractors who want benefits without large cash outflow for wages.
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✔ Why contractors should care
• Helps retain good operators, foremen, and laborers
• Lets small contractors offer big-company-style benefits
• Gives you a federal tax break for taking care of your crew
• Strengthens recruiting and retention in a competitive labor market
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✔ Example: How much money are we talking?
If you pay an employee $6,000 during a six-week medical recovery leave, the IRS may give you back up to $1,500 as a tax credit.
This isn’t a deduction — it’s a dollar-for-dollar credit.
Real cash savings.
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🧰 What Contractors Should Do Now
To prepare for 2026:
1. Draft a written paid leave policy (required to claim the credit).
2. Decide between paying leave wages or using paid leave insurance.
3. Train your office staff or bookkeeper on the upcoming rules.
4. Use this benefit as a hiring and retention advantage.
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👷♂️ For Contractors Only
If you run a construction company and want more tax strategies for:
• Cash flow
• Payroll
• Energy credits
• Depreciation updates
• Job costing
• Entity structure
Subscribe — and drop your questions in the comments.
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🔗 Connect with Me
• 🌐 accountingsolutionsllp.com
• 💼 LinkedIn: / george-ghazarian-asllp
• Book a Strategy Call: https://accountingsolutionsllp.com/ap...
Disclaimer: This content is provided for educational purposes only and is not legal, tax, accounting, or financial advice. Every situation is unique, so consult your own attorney, CPA, or financial advisor before making decisions based on this information.
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