The Tax Cuts and Jobs Act added into law a general business credit for employers who provide paid family and medical leave to their employees. The credit equals 12.5% of the amount of wages paid to qualifying employees during any period in which the employees are on Family and Medical Leave.

The IRS has recently issued questions and answers on this credit to provide guidance with regard to an employer’s ability to take the credit.

Briefly, to claim the credit, an employer must have a written policy that satisfies four requirements:

The IRS Notice applies to tax years 2018 and 2019. If you have questions pertaining to your ability to utilize and take this credit, please feel free to call our office.

~ Debby Jacobs, CPA

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