Employers who provide paid family and medical leave can take advantage of a new tax credit!!

The credit will be available from the 2017 tax year and be phased out currently in the year 2020.

To be eligible for the credit, there must be a written policy that includes at least two weeks of paid family and medical leave for full time employees and pay for the leave must be at least 50% of the wages normally paid to the employee.

With respect to the 2018 tax year, the 2017 employee’s compensation must be $72,000 or less to qualify for the credit.

It ranges from 12.5% to 25% of the wages paid during the leave.

For more details, see IRS Notice 2018-71. You can follow the link here: https://www.irs.gov/pub/irs-drop/n-18-71.pdf

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