Support your people
Benefits can cover bonding, family care and an employee’s serious health condition, depending on the policy.
Paid family & medical leave insurance
PFML insurance could fund $6,646 of leave pay.
A $96,000 salary per employee. Six payable weeks at 60% pay. Explore coverage for your business and federal tax credits that may reduce the cost.
Free · No loginAbout 1 minuteNo employee names
Keep a leave claim from becoming a payroll surprise.
Insurance exchanges a recurring premium for covered wage payments when leave happens. The right choice depends on your whole workforce and the benefit you want to offer.
Plan the cost
Compare a carrier’s premium with the cost of funding the same leave benefit yourself.
Check the credit
Eligible employers may claim 12.5%–25% of qualifying wages or premiums under Section 45S.
Follow the money
Same leave benefit. Two ways to fund it.
Compare an employer paying leave wages directly with an employer buying insurance. Switch the example to see why a claim year and a year without leave look different.
Six weeks of covered leave. Employer outlay before credits: $6,646 paying directly; $1,200 with insurance. Potential gross credits: $997 paying directly; $997 with insurance.
Employer pays directly
The business funds the promised leave wages.
- Total gross leave benefits
- $6,646
- Leave wages funded by employer
- $6,646
- Annual insurance premium
- $0
- Potential gross wage credit
- $997
Employer outlay before credits
$6,646
Before tax deduction effects and other leave costs.
Employer buys PFML insurance
The insurer funds the covered leave benefit.
- Total gross leave benefits
- $6,646
- Leave benefit funded by insurer
- $6,646
- Annual employer-paid premium
- $1,200
- Potential gross wage credit
- $997
Employer outlay before credits
$1,200
Before tax deduction effects and other leave costs.
Wage method shown for insurance. This example compares a $997 wage credit with a $180 premium credit. The larger gross credit is shown for the whole illustrated group; the credits cannot be added for the same insured benefit.
Potential savings before tax credits
$5,446
Lower employer outlay with insurance versus paying the same leave benefit directly, in this scenario. Before deductions and other costs; not guaranteed annual savings.
Illustrative premium, not a quote. Amounts before tax deduction effects and other leave costs.
Premiums are paid across the covered workforce each year, including years without claims. These scenarios are not estimates of annual return. Waiting periods, benefit caps, exclusions, and offsets can change the insurer’s actual payment.
If no tax credit is available, the illustrated employer outlay is $6,646 paying directly or $1,200 for insurance, before tax deduction effects and other leave costs.
Assumptions behind these figures
This 2026 illustration assumes every covered employee is ordinary full-time with preceding-year compensation of no more than $96,000, the required service, and no annualization or part-time adjustment. Current salary alone does not establish eligibility.
The employer and its written policy meet all Section 45S requirements, including coverage for all qualifying employees, minimum leave, qualifying purposes, wage replacement, and required employee protections. The leave payments qualify as FUTA wages and contain no state-required, government-funded, or otherwise noncreditable amounts. The employer fully pays the illustrative premium, which is entirely allocable to creditable coverage. All employees are assumed to have the same salary, benefits and eligibility; actual group pricing and claims will differ.
At 60% wage replacement, the gross credit rate is 15%. Both paths assume the employer can use the full credit; deduction reductions and tax-credit limitations can change the actual tax benefit. A tax adviser must confirm eligibility and the method election. These figures exclude replacement staffing, payroll taxes, administration, and other costs. Dollar amounts are rounded.
Where the $6,646 comes from
$96,000 annual salary ÷ 52 weeks × 6 payable weeks × 60% = $6,646.15. This assumes the full benefit is covered, with no waiting-period reduction, benefit cap or other offset. It is a benefit amount; your premium and other costs still need to be paid.
All credits shown assume a qualifying employer, written policy, employee and voluntary leave benefit. For this full-time 2026 example, prior-year total compensation is also assumed to be $96,000. A carrier quote and tax review establish what applies to your business. IRS rules for premiums and method selection.
Before counting on a credit
Does your plan qualify?
Buying insurance alone does not establish tax eligibility. The quick check looks at the basics and points out what still needs a closer review.
Your written leave policy
Generally at least two weeks of qualifying paid family and medical leave, at 50% or more of normal pay, with the required employee protections.
Your qualifying employees
Hours, service and prior-year compensation matter. This 2026 full-time example uses a $96,000 prior-year ceiling; other employment patterns need review.
Your state and funding
Mandatory or government-paid leave is excluded from the credit amount. Only the eligible employer-paid portion of a premium counts.
Have no policy or quote yet? You can still check what a qualifying plan would need. Talk to Truscott about coverage. Insurance may have value even when a tax credit is unavailable.
Get a useful answer before sharing contact details.
- 1
Answer a few simple questions
Tell us how leave is funded and what you know about your plan. No documents or exact figures needed. “Not sure” is always an option.
- 2
See your result
See whether your answers suggest a credit opportunity, a few details to check, or a future paid-leave plan. No pass/fail verdict from incomplete information.
- 3
Choose your next step
Talk with Truscott about coverage, or open the optional detailed calculator when you’re ready for numbers. You decide how far to go.
Start free assessment
About 1 minute. No documents, login or employee names needed.
A clear division of expertise
Insurance review from Truscott. Tax confirmation from your adviser.
Truscott explores coverage, pricing and policy terms where appropriately licensed and appointed. Your tax professional confirms the credit election, available tax liability, deductions and filing. The quick check gives a starting point; the optional detailed calculator provides estimates based on your answers.
View agency licensingCheck the sources behind the example
Page reviewed September 5, 2026 · Assessment rules dated September 4, 2026
Questions employers ask
Is $6,646 the tax credit or my guaranteed savings?
It is the potential insurance benefit in one example: $96,000 annual salary ÷ 52 × six payable weeks × 60% wage replacement = $6,646.15. The insurer must approve the claim, and the policy must cover the leave without limits or offsets reducing that amount. Your business still pays premiums. The benefit is not a tax credit, a quote, or a prediction of annual savings.
How much does PFML insurance actually cost?
The $1,200 annual premium per covered employee is an illustration, not a carrier quote or a typical market rate. Real pricing depends on the group, state, benefit amount, waiting period, claims experience, participation and other coverage. Premiums usually cover a workforce, including employees who do not take leave. Ask Truscott to check availability and obtain a quote for your business.
Can I receive a credit if nobody takes leave?
Potentially. Beginning with tax years starting after December 31, 2025, qualifying employer-paid PFML premiums may support a credit even without a claim. In this example, a policy replacing 60% of wages gives a 15% credit rate: $1,200 × 15% = $180. The premium must fund qualifying coverage for qualifying employees. The premium method can also be used in a claim year, subject to the election rules.
What changes if the employee takes covered leave?
Qualifying leave wages may support the wage method whether the employer or its insurer funds them. The $6,646 example illustrates a $997 gross wage credit. With insurance, compare that against the $180 premium credit; do not add them for the same insurance-funded benefit. A separately employer-funded top-up may support a wage credit alongside a credit for the insurance premium. Your tax adviser confirms the allocation and election.
Does every employee earning $96,000 qualify?
Salary alone does not determine eligibility. For a full-time, non-annualized calendar-year 2026 case, the compensation ceiling is $96,000 of total preceding-year compensation. Current salary is a separate fact. The employee must also meet hours and service rules, and the employer must have a qualifying written policy. Part-time, part-year and variable-hour cases need additional review. An employee may be insurable even if their coverage does not support a tax credit.
How do state programs and disability insurance fit in?
Short-term disability generally covers the employee’s own disabling condition. Family leave can add bonding and caregiving benefits; carriers may combine the products. State-required or government-paid leave can help satisfy the federal duration requirement, but those benefits and the premiums funding them are excluded from the credit calculation. A private plan replacing a state program is not automatically tax-credit eligible.
Can I buy coverage after someone has already taken leave?
A new policy generally will not cover leave that occurred before coverage began. Effective dates, enrollment rules, waiting periods and claim terms matter. Existing qualifying leave wages may warrant a tax review, but buying insurance now does not retroactively create coverage or repair a missing written policy for that earlier leave.
Does the assessment file the credit or give me an insurance quote?
No. The free check asks up to five simple questions and points to a potential credit opportunity, details to review, or a future plan. It is not a full qualification or a dollar estimate. No documents, login or contact details are needed. An optional detailed calculator is available if you want estimates using your policy and payroll records. Truscott reviews insurance options where appropriately licensed and appointed; your tax adviser confirms eligibility and filing.
See what paid-leave coverage could mean for your business.
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