IRS Issues New Guidance on Expanded Paid Family and Medical Leave Tax Credit

New IRS and Treasury guidance explains changes to the employer tax credit for businesses that provide qualifying paid family and medical leave. II.studio/Shutterstock

The Department of the Treasury and the Internal Revenue Service have issued official guidance on an expanded employer tax credit for paid family and medical leave (PFML), according to an announcement from the two agencies. The guidance, published as Notice 2026-28, addresses changes made under legislation called the Working Families Tax Cuts (WFTC).

Paid Family and Medical Leave Tax Credit Becomes Permanent