Pennsylvania Tax Officials State that Teleworkers Will Not Create Nexus for State Taxes
Stay-at-home orders in effect across the country have forced a large portion of the American work force to work from home. Businesses transitioning their ...
The Tax Cuts and Jobs Act ("TJCA") provides a general business credit to qualifying employers that provide paid leave pursuant to the Family Medical and Leave Act ("FMLA"). Currently, the FMLA does not require employers to compensate employees while they take FMLA leave. The TCJA, however, offers a new incentive for paid family and medical leave.
The TJCA provides a general business credit in an amount equal to the applicable percentage of the wages paid to a qualifying employee during any period in which the employee is on family and medical leave. The applicable percentage starts at 12.5% of wages paid to a qualifying employee during the period in which the employee is on family and medical leave, provided that wages paid under the program are at least 50% of the wages normally paid to the employee. The 12.5% applicable percentage increases by .25% for each percentage point by which the rate of wages paid to the employee on leave exceeds 50% of the employee’s normal wages. The applicable percentage is capped at 25%. The credit can be calculated based on up to 12 weeks of FMLA leave.
To qualify for the credit, certain criteria must be satisfied. Generally, all of the following requirements must be met:
If you have any questions about this tax credit, please contact Schneider Downs. For similar articles visit the Our Thoughts On blog.
This article was updated on May 1, 2020. Updates to this article will be made as new information becomes available. Schneider Downs continues to track ...
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