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Capture new family leave credit

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in Small Business Tax

The Tax Cuts and Jobs Act (TCJA) provides a new tax break to businesses that give workers time off for family matters.

Strategy: Set up a written family and medical leave program. As long as certain requirements are met, your business can claim a tax credit for up to 25% of the wages paid to employees while out on leave for up to 12 weeks.

The IRS has spelled out the key rules in new Tax Tip 2018-69 at www.irs.gov/newsroom/how-the-employer-credit-for-family-and-medical-leave-benefits-employers.

Here’s the whole story: Generally, employers with 50 or more employees are required to provide unpaid leave to workers for family or medical leaves. But there’s no requirement to pay workers while they are away from the job. Under the TCJA, the new credit is available to employers of all sizes who pay workers while on family or medical leave.

For purposes of the credit, a “family and medical leave” occurs for one or more o...(register to read more)

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