Last week the IRS issued questions and answers on the new general business credit to for employers who provide paid family and medical leave to their employees. This is a new credit that was formed as part of the Tax Cuts and Jobs Act of 2017.
Generally, employers must have a policy that pays for at least 50% of the employees' wages and the employees must not earn more than $72,000 in 2017. Employers can receive a credit equal to 12.5 to 25 percent of paid leave which is calculated pro-rata from paying a minimum of 50% of qualifying wages up to 100% of qualifying wages.
To learn more about this credit, see IRS Tax Tip 2018-149 or the Journal of Accountancy's recent article on the subject.
To learn more about this credit, see IRS Tax Tip 2018-149 or the Journal of Accountancy's recent article on the subject.
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