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 eight 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 35 attorneys, senior benefits
consultant and seven paralegals combine many years of experience in
their fields of practice with a variety of backgrounds. Nine 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. Five of the firm's attorneys have been named to the
prestigious Super Lawyers list for 2018, which highlights outstanding
lawyers based on a rigorous selection process. The Wagner Law Group
is certified as a woman-owned and operated business by the Women's
Business Enterprise National Council.
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 Provides Additional
Guidance on Paid Family and Medical Leave
has issued Notice 2018-71 which provides additional guidance on the
paid Family and Medical Leave Act ("FMLA") tax credit which
was created by the Tax Cuts and Jobs Act of 2017.
Background. The FMLA tax credit enables eligible
employers to claim a general business tax credit of up to 25% of the
wages paid to "qualifying employees" while they are on
family and medical leave, subject to certain conditions.
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.
- Placement of
a child with the employee for adoption or foster care.
- Care of the
employee's spouse, child, or parent who has a serious health
- 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 Forces.
- Care of a
service member who is the employee's spouse, child, parent, or
next of kin.
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.
Among other things, Notice 2018-71 provides that:
- An employer
need not be subject to the FMLA to claim the tax credit.
"qualifying employee" is an employee who has been
employed by the employer for one year or more, and whose
compensation is no more than $72,000 in the prior year (as
indexed). The employee does not have to be subject to the
FMLA, and does not have to have worked a specified number of
- For an
employer to be eligible to claim the credit, the employer must
have a written leave policy that:(a) provides at least two weeks
of annual paid family and medical leave to all qualifying
employees who are not part-time employees, and at least a
proportionate amount of paid family and medical leave to
qualifying employees who are part-time employees; (b) requires a
rate of payment that is not less than 50 percent of wages; and,
(c) includes specified "non-interference" language for
employees who are not subject to FMLA protections. For
purposes of the tax credit, a part-time employee is an employee
who is customarily employed for fewer than 30 hours per week.
- For an
employer's first taxable year beginning after December 31, 2017,
the written leave policy or an amendment to a policy will be
considered to be retroactively in place as of the effective date
of the policy (or amendment), rather than a later adoption date,
if: (a) the policy is adopted on or before December 31, 2018;
and, (b) the employer brings its leave practices into compliance
with the terms of the retroactive policy for the entire period
covered by the policy.
- Paid leave
provided under an employer's short-term disability program,
whether self-insured by an employer or provided through a
short-term disability insurance policy, may be characterized as
paid family and medical leave. However, 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
- The policy
may not exclude any classification of employees (for example,
collectively bargained employees) if they are qualifying
- Wages paid
to an employee for family and medical leave taken before an
employee becomes a qualifying employee are excluded in
determining the employer's credit.
Notice 2018-71 is available