The Department of the Treasury and IRS issued Notice 2026-28, providing guidance on the employer credit for paid family and medical leave (PFML) under the Working Families Tax Cuts (WFTC). The WFTC permanently expands eligibility and coverage for employers offering PFML benefits. Key changes include allowing employers to claim credits for employees with six months of service and part-time workers working at least 20 hours weekly. Employers may now claim credits for insurance premiums or wages paid during leave, with state or local mandates counted toward eligibility but not credit calculations. Starting in 2026, employers can use a premium-based method for claiming credits, alongside wage-based methods. Proposed regulations will provide further guidance on implementing these changes. Details on the credit structure and application are available on IRS.gov.
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