IRS celebrates National Work and Family Month
Highlights credit for paid family and medical leave, other topics
WASHINGTON – The Internal Revenue Service is participating in National Work and Family Month by issuing a series of informative tips on work-life balance throughout the month of October. The agency plans a series of news releases, fact sheets and tax tips. Topics covered include family-owned businesses, family tax credits, military tax benefits and scams and security issues.
National Work and Family Month was established in 2003 by a Senate resolution. The month of October was chosen to help communicate and celebrate progress towards creating more flexible work environments and helping individuals better balance their work-life commitments.
Employer Credit for Paid Family and Medical Leave
This tax benefit helps highlight the spirit of National Work and Family Month. Under tax reform, eligible employers who provide paid family and medical leave to their employees in 2019 may qualify for a business credit.
To qualify, an employer must have a written policy that provides:
The credit is available for qualified wages paid in tax years beginning after Dec. 31, 2017, and before Jan. 1, 2020. Generally, tax year 2019 is the last year most employers are eligible to claim the credit.
Family and Medical Leave Act
The Family and Medical Leave Act of 1993 required covered employers to provide employees with job-protected and unpaid leave for qualified medical and family reasons. The law allows certain employees with up to 12 weeks of unpaid, job-protected leave per year. It also protects the employee’s group health benefits during the leave period.
FMLA is designed to help employees balance their work and family responsibilities by allowing them to take reasonable unpaid leave for specific family and medical reasons.
Many taxpayers may need to take out money early from their Individual Retirement Account or retirement plan. Doing so, however, can trigger an additional tax on early withdrawals. They would owe this tax on top of other income tax they may have to pay. Here are a few key points to know: Early withdrawals. An […]