{"id":2778,"date":"2026-09-28T14:51:23","date_gmt":"2026-09-28T18:51:23","guid":{"rendered":"https:\/\/iiicareer.com\/eng\/?p=2778"},"modified":"2026-09-28T14:50:25","modified_gmt":"2026-09-28T18:50:25","slug":"irs-issues-paid-leave-tax-credit-guidance","status":"publish","type":"post","link":"https:\/\/iiicareer.com\/eng\/2026\/09\/28\/irs-issues-paid-leave-tax-credit-guidance\/","title":{"rendered":"IRS Issues Paid Leave Tax Credit Guidance"},"content":{"rendered":"<div class=\"wp-block-image\">\n<figure class=\"alignright size-full is-resized\"><img loading=\"lazy\" decoding=\"async\" width=\"800\" height=\"533\" src=\"https:\/\/iiicareer.com\/eng\/wp-content\/uploads\/2025\/01\/IRS-Resized-01.png\" alt=\"\" class=\"wp-image-1801\" style=\"width:300px;height:auto\" srcset=\"https:\/\/iiicareer.com\/eng\/wp-content\/uploads\/2025\/01\/IRS-Resized-01.png 800w, https:\/\/iiicareer.com\/eng\/wp-content\/uploads\/2025\/01\/IRS-Resized-01-300x200.png 300w, https:\/\/iiicareer.com\/eng\/wp-content\/uploads\/2025\/01\/IRS-Resized-01-768x512.png 768w\" sizes=\"auto, (max-width: 800px) 100vw, 800px\" \/><\/figure>\n<\/div>\n\n\n<p class=\"wp-block-paragraph\">The Internal Revenue Service (IRS) and the Treasury Department issued guidance that addresses the employer tax credit for paid family and medical leave, which Congress made permanent and expended under the Working Families Tax Cuts Act (WFTC), a part of the comprehensive omnibus budget reconciliation bill of 2025.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">An employer may qualify for the credit if it has a written policy in place that meets three core conditions:&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Minimum leave duration: At least two weeks of annual paid family and medical leave for full-time qualifying employees, with a proportionate amount for part-time employees.\u00a0<\/li>\n\n\n\n<li>Minimum rate of payment: A rate of payment of at least 50 percent of the wages normally paid to the employee (excluding overtime and discretionary bonuses).\u00a0<\/li>\n\n\n\n<li>Noninterference protections: The policy must include language ensuring the employer will not interfere with employees\u2019 FMLA rights under the policy or retaliate against employees who exercise their FMLA rights.<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">Beginning in 2026, a qualifying employee must meet three criteria: (1) employed by the employer for at least one year (or at least six months at the employer\u2019s discretion), (2) earned pay that did not exceed $96,000 or 60 percent of the highly compensated employee threshold under federal law in the prior year, and (3) customarily worked at least twenty hours per week.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The credit applies only to leave taken for purposes described in the FMLA.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><em>Ogletree Deakins:<\/em><br><em><a href=\"https:\/\/ogletree.com\/insights-resources\/blog-posts\/irs-guidance-answers-questions-on-employer-tax-credit-for-paid-leave\/\" target=\"_blank\" rel=\"noopener\">IRS Guidance Answers Questions on Employer Tax Credit for Paid Leave<\/a><\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Internal Revenue Service (IRS) and the Treasury Department issued guidance that addresses the employer tax credit for paid family and medical leave, which Congress made permanent and expended under the Working Families Tax Cuts Act (WFTC), a part of the comprehensive omnibus budget reconciliation bill of 2025. An employer may qualify for the credit [&hellip;]<\/p>\n","protected":false},"author":1003,"featured_media":1801,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"sns_share_botton_hide":"","vkExUnit_sns_title":"","_vk_print_noindex":"","sitemap_hide":"","_veu_custom_css":"","veu_display_promotion_alert":"","vkexunit_cta_each_option":"","header_top_description":"","footnotes":""},"categories":[16],"tags":[463,461,82,464,462,465,466],"class_list":["post-2778","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-legal","tag-employer-tax-credit","tag-internal-revenue-service","tag-irs","tag-paid-family-and-medical-leave","tag-treasury-department","tag-wftc","tag-working-families-tax-cuts-act"],"aioseo_notices":[],"aioseo_head":"\n\t\t<!-- All in One SEO 5.0.2 - aioseo.com -->\n\t<meta name=\"description\" content=\"The Internal Revenue Service (IRS) and the Treasury Department issued guidance that addresses the employer tax credit for paid family and medical leave, which Congress made permanent and expended under the Working Families Tax Cuts Act (WFTC), a part of the comprehensive omnibus budget reconciliation bill of 2025. An employer may qualify for the credit\" \/>\n\t<meta name=\"robots\" content=\"max-image-preview:large\" \/>\n\t<meta name=\"author\" content=\"editor 1\"\/>\n\t<link rel=\"canonical\" href=\"https:\/\/iiicareer.com\/eng\/2026\/09\/28\/irs-issues-paid-leave-tax-credit-guidance\/\" \/>\n\t<meta name=\"generator\" content=\"All in One SEO (AIOSEO) 5.0.2\" \/>\n\t\t<meta property=\"og:locale\" content=\"en_US\" \/>\n\t\t<meta property=\"og:site_name\" content=\"PEOPLE\u2022WORK\u2022COMMUNITY iiicareer.com - Job Agency in US &amp; Japan | Job Navigator\u00ae\" \/>\n\t\t<meta property=\"og:type\" content=\"article\" \/>\n\t\t<meta property=\"og:title\" content=\"IRS Issues Paid Leave Tax Credit Guidance\" \/>\n\t\t<meta property=\"og:description\" content=\"The Internal Revenue Service (IRS) and the Treasury Department issued guidance that addresses the employer tax credit for paid family and medical leave, which Congress made permanent and expended under the Working Families Tax Cuts Act (WFTC), a part of the comprehensive omnibus budget reconciliation bill of 2025. 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