New Tax Credit for Providing Paid Family and Medical Leave


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I’ve talked a lot about new Tax Act strategies with C Corporations and pass-through tax structures. There are dozens and dozens of more little changes in this new pervasive tax change that took effect, for the most part, on 1/1/18.

Over the next few weeks, I will feature some of the less known changes. One of those is the new paid family and medical leave tax credit.

With the new law, an employer that offers at least two weeks of annual paid family and medical leave may receive a tax credit. The leave must be offered to all “qualifying” full-time employees and provide for at least 50% of the wages normally paid to the employee. “Family and medical leave” does not include leave provided as vacation, personal leave, or other medical or sick leave.

A “qualifying employee” is an employee who has been employed by the employer for at least one year, and whose compensation for the preceding year did not exceed 60% of the compensation threshold for highly compensated employees (i.e., compensation did not exceed $72,000).

My new book, “Taxmaggedon 2018” is coming out within the next month. In it I’ll cover strategies you can use to take advantage of all of these new tax changes. The new Tax Act means more tax for a lot of people, but for those that are willing to make some changes, it provides a huge opportunity.

Are you willing to make a change if it means a lot more money in your pocket?



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