8994

Employer Credit for Paid Family and Medical Leave

Agency
IRS
Revision
Rev. January 2021
Fillable fields
13
Pages
1
Official source
IRS form page
Checked
October 21, 2026
Fill 8994 online
Page 1 of form 8994

Form 8994: Employer Credit for Paid Family and Medical Leave

Form 8994, Employer Credit for Paid Family and Medical Leave, is used by eligible employers to figure the credit for paid family and medical leave. The IRS About page says it covers tax years beginning after 2017. The instructions say the credit ranges from 12.5% to 25% of certain wages paid to a qualifying employee while the employee is on family and medical leave.

The form opens with four yes or no questions about the employer's written leave policy and the leave paid during the year. For a No answer, the form says to stop and not file, with an exception that may apply to a partnership or S corporation. Lines 1 to 3 then total the credit figured for the employer's own qualifying employees and any credit received from partnerships and S corporations.

The form says to attach it to the tax return. You can fill out Form 8994 free in your browser on this page and download the PDF without an account.

Top of page 1 of Form 8994: Employer Credit for Paid Family and Medical Leave, as printed by IRS

What's on Form 8994

Name and identifying number

The name or names shown on the return and the identifying number.

Questions A and B: the written policy

Whether the written policy provides at least 2 weeks of annual paid family and medical leave (prorated for part-time employees), and leave of at least 50% of the wages normally paid.

Questions C and D: leave paid and non-interference

Whether leave was paid to at least one qualifying employee during the year, and whether the policy includes and the employer complies with "non-interference" language when an employee is not covered by the Family and Medical Leave Act.

Line 1: credit figured

The total credit for wages paid during the tax year to qualifying employees while on family and medical leave, such as the column (d) total of the Paid Family and Medical Leave Credit Worksheet.

Line 2: credit from pass-through entities

Employer credit for paid family and medical leave from partnerships and S corporations.

Line 3: total

Lines 1 and 2 added. The form says partnerships and S corporations report it on Schedule K, and all others on Form 3800, Part III, line 4j.

How to fill out Form 8994

  1. 1

    Answer questions A to D

    Check Yes or No for each. For a No answer, the instructions say not to file Form 8994 unless it is filed for a partnership or S corporation that received a credit from another entity to report on line 2.

  2. 2

    Find the applicable percentage

    The instructions' Applicable Percentage Worksheet starts at 12.5% for a 50% rate of payment and adds 0.25 percentage points for each point above 50%, up to 25%.

  3. 3

    Complete the credit worksheet

    List each qualifying employee, the family and medical leave wages paid during the year and the applicable percentage, then multiply. The instructions say no more than 12 weeks of leave per employee per tax year count.

  4. 4

    Line 1

    Enter the worksheet total. The instructions say that, in general, the deduction for salaries and wages is reduced by the line 1 amount.

  5. 5

    Line 2

    Enter credits from Schedule K-1 (Form 1065), box 15 (code BB), or Schedule K-1 (Form 1120-S), box 13 (code BB).

  6. 6

    Line 3

    Add lines 1 and 2 and carry the total to Schedule K or to Form 3800, Part III, line 4j, as the form says.

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Where it goes, timing and records

Where it goes

The form says to attach it to the tax return.

Time to claim

The instructions say the credit can be claimed, or not claimed, any time within 3 years from the due date of the return, on an original or amended return.

Which revision

The instructions say to use the January 2021 revision of Form 8994 for tax years beginning in 2020 or later, until a later revision is issued.

Records to keep

The instructions list each qualifying employee's name and social security number, wages paid, each employer's name and EIN, the applicable percentage, and the leave policy.

State paid leave

The instructions say leave paid by a state or local government or required by state or local law is not taken into account when figuring the credit.

Related forms

Who files Form 8994?

  • Eligible employers

    An employer whose written policy meets the requirements in questions A, B and D and that paid family and medical leave to at least one qualifying employee during the tax year.

  • Partnerships and S corporations

    The instructions say partnerships and S corporations file this form to claim the credit. The form says they report the line 3 amount on Schedule K.

  • Partners and shareholders

    The instructions say other taxpayers whose only source for this credit is a partnership or S corporation do not complete this form and report the credit directly on Form 3800, Part III, line 4j.

  • Controlled groups

    Each member of a controlled group or of businesses under common control generally makes a separate election to claim or not claim the credit. For a consolidated group, the group's agent makes it.

  • Employees appear only in the records

    The form is the employer's. The instructions say the employer keeps records such as each qualifying employee's name, social security number and wages paid.

Employers complete Form 8994, not employees. The instructions describe an eligible employer as one with a written policy in place that provides paid family and medical leave and meets the minimum paid leave requirements.

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Questions about Form 8994

Who fills out Form 8994?

Employers. The About page says eligible employers use it to figure the credit for paid family and medical leave.

How much is the credit?

The instructions say it ranges from 12.5% to 25% of certain wages paid to a qualifying employee while on family and medical leave, based on the rate of payment under the policy.

Who is a qualifying employee?

The instructions say an employee employed for 1 year or more whose compensation for the preceding year does not exceed 60% of the amount under section 414(q)(1)(B)(i). Their table lists a prior year compensation limit of $90,000 for 2024, $93,000 for 2025 and $96,000 for 2026.

Does vacation or sick leave count?

The instructions say paid vacation, personal, or medical or sick leave (other than leave specifically for one or more FMLA purposes) is not family and medical leave.

The credit came only from a partnership. Is Form 8994 needed?

The instructions say taxpayers other than partnerships and S corporations whose only source for the credit is a partnership or S corporation report it directly on Form 3800, Part III, line 4j.

Can the credit be claimed on an amended return?

The instructions say it can be claimed or not claimed any time within 3 years from the due date of the return, on either an original or an amended return.