Form 8994, Employer Credit for Paid Family and Medical Leave
Form 8994 is how eligible employers figure the section 45S tax credit for wages paid to employees on family and medical leave. Fill in the official IRS PDF below and download it.
This is the genuine IRS PDF, unmodified. Source: IRS official page.
What is 8994?
Form 8994, Employer Credit for Paid Family and Medical Leave, computes the general business credit available to employers that provide paid family and medical leave under a written policy meeting the section 45S requirements. The credit is a percentage of wages paid to qualifying employees while they are on leave, and the percentage rises with the rate of pay the policy provides.
To qualify, the written policy must provide at least two weeks of annual paid leave at no less than half of normal wages, and only wages paid to employees under a compensation threshold count. The credit flows into Form 3800, General Business Credit.
Who files 8994?
- Employers with a written paid family and medical leave policy that meets section 45S requirements
- Businesses claiming the credit for wages paid to qualifying employees on covered leave
- Pass-through entities that compute the credit and pass it to partners or shareholders
- Employers aggregating this credit with others on Form 3800
How to fill out 8994
- Enter the employer’s name and identifying number at the top of the form.
- Answer the yes or no questions confirming your written policy meets the leave, payment rate, and other section 45S conditions.
- Enter the credit computed for wages paid to qualifying employees on family and medical leave.
- Add any credit amounts received from partnerships or S corporations.
- Download the finished PDF and attach it to your return, carrying the total to Form 3800.
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Frequently asked questions
Does leave required by state law count for the credit?
Generally no. Leave paid or required by a state or local government is not taken into account when figuring the credit. The policy must provide the paid leave on top of any legally mandated leave.
Which employees are qualifying employees?
Broadly, employees who have worked for you for at least a year and whose prior-year compensation was below the threshold in the instructions. The threshold changes over time, so check the current Form 8994 instructions at irs.gov.
Is this the same as the COVID-era paid leave credits?
No. Those were separate payroll tax credits claimed on employment tax returns. Form 8994 is the ongoing section 45S general business credit for employer-provided paid family and medical leave.