Wagner Law Group is a nationally recognized practice in the areas of
ERISA and employee benefits, estate planning, employment, labor and
human resources and investment management.
in 1996, The Wagner Law Group is dedicated to the highest standards
of integrity, excellence and thought leadership and is considered to
be amongst the nation's premier ERISA and employee benefits law
firms. The firm has seven offices across the country, providing
unparalleled legal advice to its clients, including large, small and
nonprofit corporations as well as individuals and government entities
worldwide. The Wagner Law Group's 34 attorneys, senior benefits
consultant and five paralegals combine many years of experience
in their fields of practice with a variety of backgrounds. Seven
of the attorneys are AV-rated by Martindale-Hubbell
and six are Fellows of the American
College of Employee Benefits Counsel, an invitation-only
organization of nationally recognized employee benefits
lawyers. Seven of the firm's attorneys have been
named to the prestigious Super
Lawyers list for 2017, which highlights outstanding
lawyers based on a rigorous selection process.
Wagner Law Group
Connecticut Avenue, N.W.
Fax: (561) 293-3591
7108 Fairway Drive
Palm Beach Gardens, FL 33418
East Kennedy Boulevard
Tampa, FL 33602
Francisco, CA 94104
25 W. Moody Avenue
St. Louis, MO 63119
IRS FAQs Provide
About the Paid Family and
Medical Leave Tax Credit
The IRS has issued FAQs that provide guidance to employers on the
Paid Family and Medical Leave Tax Credit which was created by the Tax
Cuts and Jobs Act of 2017.
Background. The FMLA Tax Credit, as provided under
Internal Revenue Code Section 45S, enables eligible employers to
claim a general business tax credit of up to 25 percent of the wages
paid to qualifying employees while they are on family and medical
leave, subject to certain conditions.
FAQs. Among other things, the FAQs provide the
following information about the FMLA Tax Credit:
Employer. To qualify for the FMLA Tax Credit, the employer
must have adopted a written leave policy that meets certain
of at least two weeks of paid family and medical leave
(annually) to all qualifying employees who work full-time
(prorated for employees who work part- time); and
- paid leave
that is not less than 50 percent of the wages normally paid to
Employee. A qualifying employee is any employee under the
Fair Labor Standards Act who has been employed by the employer
for one year or more and who, for the preceding year, had
compensation of not more than a certain amount. For an employer
claiming a credit for wages paid to an employee in 2018, the
employee must not have earned more than $72,000 in 2017.
and Medical Leave. The FAQs clarify that, for purposes of
the FMLA Tax Credit, "family and medical leave" is
leave for one or more of the following reasons:
- Birth of
an employee's child and to care for the child.
of a child with the employee for adoption or foster care.
- To care
for the employee's spouse, child, or parent who has a serious
- A serious
health condition that makes the employee unable to perform the
functions of his or her position.
qualifying exigency due to an employee's spouse, child, or
parent being on covered active duty (or having been notified of
an impending call or order to covered active duty) in the Armed
- To care
for a service member who is the employee's spouse, child,
parent, or next of kin.
One difference between the rules for the tax
credit and for FMLA leave in general is that, if an employer provides
paid vacation leave, personal leave, or medical or sick leave (other
than paid leave specifically for one or more of the purposes stated
above), that paid leave is not considered family and medical leave
for purposes of the tax credit. Moreover, any leave paid by a state
or local government or required by state or local law will not be
taken into account in determining the amount of the tax credit.
Date. The FMLA Tax Credit is generally effective for wages
paid in taxable years of the employer beginning after December
31, 2017. It is not available for wages paid in taxable years
beginning after December 31, 2019.
- Impact on
Eligible Employer's Other Deductions and Credits. An
employer must reduce its deduction for wages or salaries paid or
incurred by the amount determined as a credit. Also, any wages
taken into account in determining any other general business
credit may not be used in determining this credit.
The IRS intends to release additional FAQs
concerning the FMLA Tax Credit to address the following issues:
- When the
written leave policy must be in place.
- How paid
family and medical leave relates to an employer's other paid
- How to
determine whether an employee has been employed for one year or
- The impact
of state and local leave requirements.
members of a controlled group of corporations and businesses
under common control are treated as a single taxpayer in
determining the credit.
are available by clicking