Maryland Legislature approves tax credit for small business paid sick leave

At the end of its session this month, the Maryland Legislature approved $5 Million in tax credits for those small businesses that provide benefits under the Mandatory Paid Sick Leave Law to employees earning less than earn 250% of the annual federal poverty guideline.

Steve Lewicky
June 06, 2018

 

At the end of its session this month, the Maryland Legislature approved $5 Million in tax credits for those small businesses that provide benefits under the Mandatory Paid Sick Leave Law to employees earning less than earn 250% of the annual federal poverty guideline.  A small business may receive a tax credit equal to the lesser of $500 for each qualified employee, or the total amount of paid time off provided in accordance with the Paid Leave Compromise Act (SB 135/HB 98 of 2018) to qualified employees. Only businesses with 14 or fewer employees are eligible for this credit.  The credit is to be provided on a first-come-first-credited basis, until the $5 Million aggregate credit amount is reached.  If signed by Governor Hogan as expected, this law will take effect on July 1, 2018, but will apply retroactively to the entire 2018 tax year.

If you have questions about the Mandatory Paid Sick Leave Law, contact the Law Office of Steven J. Lewicky.

About The Author
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Following graduation from law school, I served as a judicial law clerk to the Hon. John McAuliffe on Maryland’s highest appellate court, the Maryland Court of Appeals. I entered private practice and went on to became a partner with the law firm of Furey, Doolan & Abell in Chevy Chase, where my ...

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