New tax credit for employer-paid family and medical leave available for 2018 and 2019
IR-2018-191SP, September 24, 2018
WASHINGTON – The Internal Revenue Service announced today that eligible employers who provide paid family and medical leave to their employees can qualify for a new commercial credit for tax years 2018 and 2019.
In addition, eligible employers to establish qualified paid family leave or amend existing for December 31, 2018 programs will be eligible to claim the credit of the employer for family and medical leave with pay, retroactive to the beginning of the taxable year 2018 the employer to qualified license provided.
In Notice 2018-71 (in English) published today on IRS.gov, the IRS provided detailed guidance on the new credit in a question and answer format. The loan was issued by the Employment Law and Tax Reduction (TCJA).
The notice published today, explains how to calculate credit, including the application of special rules and limitations that apply. Only paid family and medical leave to employees whose compensation last year was equal to or less than a certain amount qualifies for the credit. Overall, for the tax year 2018, the employee’s compensation for 2017 by the employer must be $ 72,000 or less.
You can find updates on the implementation of TCJA on the page Tax Reformof IRS.gov.
Refer USA IRS News