Page 34 - Tax Reforms - Businesses

Employer Credit for Paid Family and

Medical Leave (2/3)

A general business credit employers may
claim, based on wages paid to qualifying
employees while they are on family and
medical leave, subject to certain
conditions.

The employer credit for paid family and
medical leave was extended to Dec. 31,

ECPFML 2020, from Dec. 31, 2019, under
the Further Consolidated Appropriations
Act, 2020 H.R. 1865 (Pub.L.116-94).

Eligible employers who set up qualifying
paid family leave programs or amend
existing programs by Dec. 31, 2020 will be
eligible to claim the employer credit for

paid family and medical leave, retroactive
to the beginning of the employer’s 2018
tax year, for qualifying leave already
provided. Notice 2018-71 provides
detailed guidance on the new credit in a
question and answer format.
https://lentcpa.com