Getting the most of this course
Section 1: Definitions
Basic definitions commonly used in tax planning
Section 2: Tax Law Changes
Discussion of some of the 2018 tax law changes
- Tax law changes excel template
- Personal Standard Deduction
- Tax Rate Changes – Individual
- Tax Rates – Corporation
- Moving expenses
- Medical expenses
- Mortgage interest
- State taxes
- Casualty loss
- Miscellaneous itemized deduction
- Child tax credit
- Opportunity Zones
- Employee credit for paid family and medical leave
- Tax Law Change Quiz
Section 3: Qualified Business Income Deduction
QBI- new deduction for 2018
Section 4: Tax Planning
Section 5: Tax issues specific to married entrepreneurs
Section 6: Multi year tax planning issues
Employee credit for paid family and medical leave
The employee credit for paid family and medical leave is a general business credit based on wages paid to qualifying employees while on family or medical leave.
Who is a qualified employee?
A qualified employee is any employee under the Fair Labor Standards Act who has been employed for one year or more and who, for the preceding year, had compensation of not more than 60 percent of the amount applicable for that year for highly compensated employees. In 2018, the applicable amount is $120,000. Accordingly, to be a qualifying employee in 2018, an employee must have earned no more than $72,000 (60 percent of $120,000).
The employee credit for paid family and medical leave is a percentage of the amount of wages paid to a qualifying employee while on family and medical leave for up to 12 weeks per taxable year.
The minimum credit percentage is 12.5% and is increased by 0.25% for each percentage point by which the amount paid to a qualifying employee exceeds 50% of the employee’s wages, with a maximum of 25%.
To claim the credit, the employer must have a written policy in place.
The policy must provide for:
1) At least 2 weeks of paid family and medical leave paid annually to all qualifying employees
2) The amount paid cannot be less than 50% of the wages normally paid to the employee.
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