Some employers offer their own, non-government-funded versions of paid family leave for employees who need to care for seriously ill or injured family members or bond with minor children.

The Tax Cuts and Jobs Act of 2017 (TCJA) provides a credit (IRC Sec 45S) for employers who provide paid family and medical leave. Initially only for 2018 and 2019, the Appropriations Act of 2020 extended the provision through 2020. The Taxpayer Certainty and Disaster Tax Relief Act of 2020 extended the credit through 2025. The leave pay would be fully taxable to the employee. For details of that program see chapter 9.17.