The Treasury Department introduced that as a part of the 2017 Tax Cuts and Jobs Act, eligible employers who present paid household and medical depart to their workers throughout tax years 2018 and 2019 might qualify for a brand new business credit score.
Treasury additionally mentioned employers organising or updating a depart policy might also be eligible for retroactive credit score.
“Delivering relief to hardworking taxpayers and their families was a central goal of the Tax Cuts and Jobs Act. We expanded and strengthened paid family and medical leave, which are investments in the future of our workers, families and country,” mentioned Secretary Steven T. Mnuchin in ready remarks.
Eligible employers who arrange qualifying paid household depart applications or amend present ones might also be eligible to claim the employer credit score for paid household and medical depart, retroactive to the start of the employer’s taxable year, for qualifying depart already supplied.
The steering launched right this moment clarifies tips on how to calculate the credit score, including the applying of particular guidelines and limitations. Generally, solely paid household and medical depart supplied to workers whose prior-year compensation was $72,000 or much less qualify for the credit score.
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