IRS Issues Tax Guidance on PFML

The IRS’s recently released Revenue Ruling 2025-4 provides significant guidance on the employment tax treatment of contributions to and benefits paid under state paid family and medical leave (PFML) programs and highlights important distinctions among the treatment of contributions and benefits for FICA, FUTA, and income tax withholding purposes.

Littler:
IRS Ruling Clarifies Employment Tax Implications of Paid Family and Medical Leave Programs