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The Wagner Law Group

The 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.

 

 

Established 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. 

 

 

 

Contact Info

The Wagner Law Group

 

  Integrity | Excellence

  

Boston 

Tel: (617) 357-5200 

Fax: (617) 357-5250 

99 Summer Street 

13th Floor

Boston, MA 02110

 

Washington, D.C.

Tel: (202) 969-2800

 

Fax: (202) 969-2568

 800 Connecticut Avenue, N.W.

Suite 810

Washington, D.C. 20006

 

Chicago

Tel: (847) 990-9034

Fax: (847) 557-1312

190 South LaSalle Street

Suite 2100

Chicago, IL 60603

 

  

Palm Beach Gardens 

Tel: (561) 293-3590
Fax: (561) 293-3591
7108 Fairway Drive
Suite 125
Palm Beach Gardens, FL 33418

   

Tampa

Tel: (813) 603-2959

Fax: (813) 603-2961

101 East Kennedy Boulevard

Suite 2140
Tampa, FL  33602 

  

San Francisco

Tel: (415) 625-0002

Fax: (415) 358-8300

300 Montgomery Street

Suite 600

San Francisco, CA 94104

  

St. Louis

Tel: (314) 236-0065

Fax: (314) 236-5743
25 W. Moody Avenue
St. Louis, MO  63119 

 

Lincoln, MA

Tel: (617) 532-8080

Fax: (617) 532-9090

55 Old Bedford Road

Lincoln, MA 01773

 

 

www.wagnerlawgroup.com

 

 

 

 IRS Provides Additional Guidance on Paid Family and Medical Leave

Tax Credit

  

October 4, 2018

 

 

 

 

The IRS 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. 

 

 

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.
  • 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 condition.
  • A serious health condition that makes the employee unable to perform the functions of his or her position.
  • Any "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.

 

 

Notice 2018-71.  Among other things, Notice 2018-71 provides that:

 

  • An employer need not be subject to the FMLA to claim the tax credit.
  • A "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 hours.
  • 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 tax credit.
  • The policy may not exclude any classification of employees (for example, collectively bargained employees) if they are qualifying employees.
  • 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 at: https://www.irs.gov/pub/irs-drop/n-18-71.pdf

 

 

 

 

 

This Newsletter is protected by copyright. Material appearing herein may be reproduced with appropriate credit.

 

This Newsletter is provided for information purposes by The Wagner Law Group to clients and others who may be interested in the subject matter, and may not be relied upon as specific legal advice.  This material is not to be construed as legal advice or legal opinions on specific facts. Under the Rules of the Supreme Judicial Court of Massachusetts, this material may be considered advertising.