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Indiana Military Family Leave
Photo: Jeffrey Lin

Indiana’s military family leave law generally applies to employers with at least 50 employees. Under the law, employers must grant eligible employees up to 10 days of unpaid leave per calendar year during one or more of the following periods:

  • During the 30 days before active duty orders are in effect
  • During a period in which the person ordered to active duty is on leave while active duty orders are in effect
  • During the 30 days after the active duty orders are terminated

An eligible employee is an employee who:

  • Has been employed by an employer for at least 12 months;
  • Has worked at least 1,500 hours during the 12 month period immediately preceding the day the leave begins; and
  • Is the spouse, parent, grandparent, child, or sibling of a person who is ordered to active duty (full-time service on active duty orders in the U.S. Armed Forces or the National Guard for a period that exceeds 89 consecutive calendar days).

An eligible employee may elect, or an employer may require the employee, to substitute any earned paid vacation leave, personal leave, or other paid leave, except for paid medical or sick leave, available to the employee for any part of the 10 day period of military family leave.

An employee must provide at least 30 days’ notice before the date on which he or she intends to begin the leave, unless the active duty orders are issued less than 30 days before the date the requested leave is to begin. The employer may require verification of eligibility for the leave.

Upon return from leave, an employee generally must be restored to the position held before the leave or an equivalent position with equivalent seniority, pay, benefits, and other terms and conditions of employment.

For more information on Indiana's military family leave law, please click here.

Note: The state laws summaries featured on this site are for general informational purposes only. In addition to state law, certain municipalities may enact legislation that imposes different requirements. State and local laws change frequently and, as such, we cannot guarantee the accuracy or completeness of the information featured in the State Laws section. For more detailed information regarding state or local laws, please contact your state labor department or the appropriate local government agency.

Eligible employers who provide paid family and medical leave (FMLA) to their employees during tax years 2018 and 2019 might qualify for a new business tax credit. This new employer credit for family and medical leave is part of tax reform legislation passed in December 2017. Here are some facts about the credit to help employers find out if they might be able to claim it.

To be eligible, an employer must:

  • Have a written policy that meets several requirements, as detailed in Notice 2018-71.
  • Provide:
    • At least two weeks of paid family and medical leave to full-time employees.
    • A prorated amount of paid leave for part-time employees.
    • Provide pay for leave that is at least 50 percent of the wages normally paid to that employee.

The credit applies to these dates:

  • It is available for wages paid in taxable years beginning after Dec. 31, 2017, and before Jan. 1, 2020.

The amount of the credit:

  • The credit is generally equal to 12.5 to 25 percent of paid family and medical leave for qualifying employees.

Here’s what kind of leave qualifies:

  • The leave can be for any or all of the reasons specified in the Family and Medical Leave Act:
    • Birth of an employee’s child.
    • Care for the child.
    • Placement of a child with the employee for adoption or foster care.
    • To care for the employee’s spouse, child, or parent who has a serious health condition.
    • A serious health condition that makes the employee unable to perform the functions of his or her position.
    • Any qualifying exigency due to an employee’s spouse, child, or parent being on covered active duty – or having been notified of an impending call or order to covered active duty – in the Armed Forces.
    • To care for a service member who is the employee’s spouse, child, parent, or next of kin.
  • However, leave paid by a state or local government, or that is required to be provided by state or local law, does not count toward the 50 percent.

Some employers are eligible to claim the credit retroactively to the beginning of their taxable year:

  • Normally employers can only claim the credit based on eligible leave taken after their new or amended policy goes into effect.
  • Read Notice 2018-71 for a description of special rules for when an employer can claim the credit retroactively.

To claim the credit, employers will:

  • Attach Form 8994 to their return. The IRS expects to have this new form available later in 2018.

The Notice sets out special rules and limitations that apply:

  • For example, only paid family and medical leave provided to employees whose prior-year compensation was at or below a certain amount qualify for the credit.
    • Generally, for tax-year 2018, the employee’s 2017 compensation from the employer must be $72,000 or less.

More Information:
Tax Reform Provisions that Affect Businesses

Short-Term Health Insurance Soon Available For Up To 36 Months
Photo: Rawpixel

New Rule Loosens Current Restrictions

Effective October 2, 2018, a new rule will allow individuals to purchase short-term, limited-duration health insurance coverage for a period of less than 12 months, and renew such coverage for up to 36 months. Under current law, the maximum coverage period for short-term, limited-duration health insurance is less than 3 months, and these policies cannot be renewed.

Notably, short-term, limited-duration health insurance is:

  • Not required to comply with the Affordable Care Act's ban on pre-existing condition exclusions and lifetime and annual dollar limits.
  • Not required to comply with the Affordable Care Act's essential health benefits requirement, which requires individual health insurance policies to cover, among other things, hospitalizations, emergency services, and maternity care.
  • Not "minimum essential coverage," meaning that policyholders may remain liable for an individual mandate penalty for any month in 2018.

View the new rule and download the fact sheet.

Check out our Health Care Reform section for more on the Affordable Care Act.

Form Instructions Also Released

The IRS has released the Forms 1094-C1095-C1094-B, and 1095-B that employers will use in early 2019 to report on the group health insurance coverage they offered in the 2018 calendar year. Instructions on how to complete Forms 1094-C and 1095-C and Forms 1094-B and 1095-B have also been released.

As a reminder, employers with 50 or more full-time employees (including full-time equivalent employees) generally must furnish a Form 1095-C to all full-time employees by January 31, 2019, and file Form 1094-C and all Forms 1095-C with the IRS by February 28, 2019 (or March 31, 2019, if filing electronically). Meanwhile, self-insured employers with fewer than50 or more full-time employees (including full-time equivalent employees) generally must furnish a Form 1095-B to all responsible individuals by January 31, 2019, and file Form 1094-B and all Forms 1095-B with the IRS by February 28, 2019 (or March 31, 2019, if filing electronically).

For more information, check out our Information Reporting section.

Policies Renewed Under Extended Transitional Policy Must End by December 31, 2019.

A previously extended transitional policy which allows health insurance issuers, at their option, to continue group coverage that would otherwise be terminated or cancelled has been further extended to policy years beginning on or before October 1, 2019, provided that all policies end by December 31, 2019. Health insurance issuers that renew coverage under the extended policy are required to provide standard notices to affected small businesses for each policy year.

Policies subject to the transitional relief will not be considered to be out of compliance with key Affordable Care Act provisions, including:

  • The requirement to cover a core package of items and services known as essential health benefits;
  • The requirement that any variations in premiums be limited with regard to a particular plan or coverage to age, tobacco use, family size, and geography;
  • The requirements regarding guaranteed availability and renewability of coverage; and
  • The requirements relating to coverage for individuals participating in approved clinical trials.

Click here to review the extended transitional policy.

Members Only: Visit our ACA by Year & Company Size section for an overview of other requirements related to Health Care Reform.

If you have questions about coverage or payroll concerns for your business, give us a call. We work with small- to mid-sized businesses in Indiana, Kentucky, and Ohio.

RBSK Payroll
RBSK Payroll Partners