Eligible employers who provide paid family and medical leave to their employees may qualify for a new business credit for tax years 2018 and 2019. The Internal Revenue Service (IRS) released information on the new credit, including how to calculate the credit as well as rules and limitations, in Notice 2018-71. 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 have been $72,000 or less.
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