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If you provide paid family and medical leave, or you are considering adding it to your employee benefits, this week’s IRS news may be important for your business.

The IRS and Treasury released Notice 2026-28 with guidance on a permanent and expanded tax credit for paid family and medical leave. The update also includes helpful reminders about the Business Tax Account, overtime reporting, the standard mileage rate 2026, and the approaching September 15 deadline.

Main update: The paid family and medical leave credit is now permanent

The employer tax credit for paid family and medical leave is no longer temporary. Under the Working Families Tax Cuts, the credit is now a permanent part of the tax code.

The credit is designed to encourage employers to provide paid leave for qualifying reasons, including:

Recovery from a serious health condition.
The birth or adoption of a child.
Caring for a spouse, child, or parent with a serious health condition.
Certain military family caregiving and emergency situations.

What the credit may be worth

Use this checklist to understand the basic calculation:

The credit is a general business tax credit.
It can equal 12.5% to 25% of qualifying wages.
The credit applies to up to 12 weeks of qualifying leave per employee per tax year.
The employer generally must pay at least 50% of the employee’s normal wages during the leave.
The credit begins at 12.5% when the employer pays 50% of normal wages.
The percentage increases as the employer pays more, up to a maximum of 25% when the employer pays 100% of normal wages.
A written leave policy and other eligibility requirements still apply.

For example, if your company pays an employee 60% of normal wages during qualifying leave, the credit percentage will be more than the minimum 12.5%. The exact calculation depends on the amount paid and the other requirements that apply.

You can read the full guidance in the IRS Notice 2026-28.

New for 2026: A premium-based calculation method

The most important change for many employers is the new option to calculate the credit using premiums paid for a qualifying paid family and medical leave insurance policy.

Previously, employers generally focused on wages paid to employees while they were on qualifying leave. Beginning in 2026, eligible employers may be able to choose between:

The wage method: Calculate the credit using qualifying wages paid during family and medical leave.
The premium method: Calculate the credit using qualifying premiums paid or incurred for a paid family and medical leave insurance policy.

The premium method may be useful even if no employee takes qualifying leave during the year. However, only the part of the premium that pays for qualifying coverage can be included.

If one insurance policy covers both qualifying and nonqualifying benefits, the employer must reasonably divide the premium between the two. Keep records showing how the allocation was determined.

You cannot claim both methods for the same leave benefit. A business may use the wage method for some benefits and the premium method for others, but the same benefit cannot be counted twice.

Also remember that the portion of wages or premiums used to claim the credit may not also be deducted as a regular business expense.

Eligibility is broader in 2026

Notice 2026-28 also expands who may qualify.

Review this list:

Your employee may qualify after six months of service, if your business elects to use the shorter service period.
Certain part-time employees may qualify if they customarily work at least 20 hours per week.
Leave required by state or local law may count when determining whether the employer meets the eligibility requirements.
State or local required leave generally does not count when calculating the federal credit amount.
Leave paid by a state or local government is not included in the federal credit calculation.
Your policy should clearly identify qualifying family and medical leave.

The rules can be different depending on how your benefit plan is structured. If your leave program is combined with vacation, personal leave, or other benefits, review the policy carefully before assuming the full amount qualifies.

Why this matters for small businesses

This is more than a short-term tax break. The permanent credit gives business owners a planning opportunity.

Paid leave can help you:

Offer a stronger employee benefit.
Support employees during important family or health events.
Control part of the cost through a federal tax credit.
Compare the cost of self-funded leave with an insurance policy.
Build the benefit into your long-term compensation and hiring plans.
Improve payroll and benefit recordkeeping.

For businesses that already offer paid leave, the biggest question may be whether your records are detailed enough to support the credit. For businesses considering a new policy, the credit may help make the cost easier to plan for.

Recommended next steps

Use this checklist before the end of 2026:

Confirm whether your business currently offers paid family and medical leave.
Check whether you pay premiums for a qualifying paid family and medical leave insurance policy.
Review your written leave policy to see which types of leave qualify.
Track qualifying wages paid during leave throughout 2026.
Track qualifying insurance premiums paid or incurred during 2026.
Identify employees with at least six months of service.
Identify part-time employees who customarily work 20 or more hours per week.
Note whether state or local paid leave requirements apply to your business.
Ask whether the wage-based or premium-based method produces the better result.
Keep records supporting any allocation of blended insurance premiums.
Ask your accountant how the credit fits into your overall tax plan.
Review the benefit before year-end instead of waiting until tax filing season.

The IRS expects to issue proposed regulations in the future. Businesses may rely on the guidance in Notice 2026-28 for tax years beginning after December 31, 2025, and before the proposed regulations are issued.

Other IRS updates to know

Business Tax Account features are expanding

The IRS continues to add features to its Business Tax Account. Depending on your business type and access level, you may be able to:

View digital IRS notices.
Download an EIN confirmation notice, also called CP575.
Make payments and schedule certain future payments.
Review payment history.
View certain tax transcripts.
Manage information connected to your federal tax account.

Check your account regularly, especially if your business is expecting an IRS notice. A digital notice may include a response deadline. If you receive a notice and believe you may qualify for IRS penalty relief, do not ignore it. Have the notice reviewed before responding.

Overtime reporting changes for 2026

IRS e-News Issue 2026-32 reminds employers that qualified overtime compensation must be separately reported on 2026 Forms W-2 for employees to claim the new overtime deduction.

Add this to your payroll checklist:

Confirm that your payroll system is prepared for the new reporting requirement.
Track qualified overtime compensation separately.
Review year-end W-2 instructions with your payroll provider.
Ask your tax professional how the reporting rules apply to your employees.

Read the IRS e-News Issue 2026-32 for more information.

Check the standard mileage rate 2026

The IRS standard mileage rate for business use is:

72.5 cents per mile from January 1 through June 30, 2026.
76 cents per mile from July 1 through December 31, 2026.

If employees or owners use a personal vehicle for business, keep a timely mileage log. Record the date, destination, business purpose, and miles driven. Review the IRS standard mileage rates before preparing your records or reimbursement policy.

September 15 deadline reminder

September 15 is approaching. For many calendar-year taxpayers, it is the deadline for the third estimated tax payment of 2026. It is also the extended filing deadline for many calendar-year partnerships and S corporations that filed an extension for their 2025 returns.

Before September 15:

Confirm whether an estimated tax payment is due.
Review year-to-date income and expenses.
Check whether your prior estimated payments are accurate.
Confirm that an extended partnership or S corporation return is complete.
Review your cash flow before submitting a payment.
Use the Books on the Go CPA Firm estimated tax calculator for a planning estimate.

Need help deciding whether the credit applies?

The new paid family and medical leave credit may be valuable, but the details matter. Your policy, employee classifications, wages, insurance premiums, and state requirements all affect the answer.

Books on the Go CPA Firm can help you review the credit, organize your records, and connect the decision to your bookkeeping, tax, and advisory plan. Visit our services page or contact us to discuss whether this permanent credit may apply to your business.

Versión en español

Actualización semanal del IRS: Nuevo crédito tributario por licencia familiar pagada, cuenta tributaria empresarial y tarifas de millaje

Si ofrece licencia familiar y médica pagada, o está considerando agregarla a los beneficios de sus empleados, las noticias del IRS de esta semana pueden ser importantes para su empresa.

El IRS y el Departamento del Tesoro publicaron el Aviso 2026-28, que explica un crédito tributario permanente y ampliado para empleadores que ofrecen licencia familiar y médica pagada. También hay recordatorios sobre la Business Tax Account, los cambios en la información de horas extra, la tarifa estándar de millaje 2026 y la fecha límite del 15 de septiembre.

Actualización principal: el crédito por licencia familiar y médica ahora es permanente

El crédito tributario para empleadores que ofrecen licencia familiar y médica pagada ya no es temporal. Bajo los Working Families Tax Cuts, ahora es un beneficio permanente.

La licencia puede cubrir situaciones como:

Recuperación de una enfermedad grave.
Nacimiento o adopción de un hijo.
Cuidado de un cónyuge, hijo o padre con una condición médica grave.
Ciertas situaciones familiares relacionadas con el servicio militar.

¿Cuánto puede valer el crédito?

Es un crédito tributario empresarial.
Puede ser de 12.5% a 25% de los salarios que califican.
Se aplica hasta por 12 semanas de licencia por empleado durante el año tributario.
Generalmente, la empresa debe pagar al menos 50% del salario normal del empleado durante la licencia.
El crédito comienza en 12.5% cuando se paga 50% del salario normal.
Puede aumentar hasta un máximo de 25% cuando se paga 100% del salario normal.
Todavía se necesita una política escrita que cumpla con los requisitos.

Puede leer el Aviso 2026-28 del IRS.

Nuevo para 2026: método basado en primas de seguro

Desde 2026, los empleadores elegibles pueden elegir entre dos métodos:

Método de salarios: usar los salarios pagados durante la licencia familiar y médica.
Método de primas: usar las primas pagadas por una póliza de seguro que cubra licencia familiar y médica calificada.

El método de primas puede ser útil aunque ningún empleado haya tomado licencia durante el año. Sin embargo, solo se puede incluir la parte de la prima relacionada con beneficios que califican.

No se pueden usar ambos métodos para el mismo beneficio. Además, la parte de los salarios o primas usada para el crédito no puede reclamarse nuevamente como una deducción regular.

Reglas de elegibilidad más amplias

Algunos empleados pueden calificar después de seis meses de servicio.
Ciertos empleados de tiempo parcial pueden calificar si trabajan normalmente al menos 20 horas por semana.
La licencia exigida por una ley estatal o local puede ayudar a cumplir con la elegibilidad.
Esa licencia generalmente no se incluye al calcular el monto del crédito federal.
Las licencias pagadas por un gobierno estatal o local no se incluyen en el cálculo federal.
La política escrita debe identificar claramente los tipos de licencia que califican.

Lista de próximos pasos

Confirme si su empresa ya ofrece licencia familiar y médica pagada.
Revise si paga primas por una póliza que califica.
Revise su política escrita.
Registre los salarios pagados durante la licencia en 2026.
Registre las primas pagadas durante 2026.
Identifique empleados con al menos seis meses de servicio.
Identifique empleados de tiempo parcial que trabajen 20 horas o más por semana.
Revise si existen requisitos estatales o locales.
Compare el método de salarios con el método de primas.
Consulte a su contador antes de finalizar la planificación tributaria del año.

Otros avisos del IRS

La Business Tax Account ahora permite a ciertos negocios:

Ver avisos digitales del IRS.
Descargar la confirmación del EIN, conocida como CP575.
Realizar y programar ciertos pagos.
Revisar el historial de pagos.
Consultar algunas transcripciones tributarias.

Además, el IRS recuerda que la compensación calificada por horas extra debe reportarse por separado en los Formularios W-2 de 2026. Revise los detalles en IRS e-News Issue 2026-32.

La tarifa estándar de millaje 2026 para uso empresarial es de 72.5 centavos por milla durante la primera mitad del año y 76 centavos por milla desde el 1 de julio hasta el 31 de diciembre. Mantenga un registro con la fecha, destino, propósito comercial y millas recorridas. Consulte las tarifas estándar de millaje del IRS.

Recordatorio: fecha límite del 15 de septiembre

El 15 de septiembre se acerca. Para muchos contribuyentes del año calendario, es la fecha límite para el tercer pago estimado de impuestos de 2026. También puede ser la fecha límite extendida para muchas sociedades y corporaciones S que solicitaron una extensión para sus declaraciones de 2025.

Antes del 15 de septiembre:

Confirme si debe realizar un pago estimado.
Revise sus ingresos y gastos del año.
Verifique sus pagos estimados anteriores.
Confirme que su declaración extendida esté lista.
Revise su flujo de efectivo.
Use la calculadora de impuestos estimados de Books on the Go CPA Firm.

Books on the Go CPA Firm puede ayudarle a determinar si el crédito por licencia familiar y médica aplica a su empresa. También podemos ayudarle con bookkeeping, impuestos y servicios de asesoría. Visite nuestra página de servicios o contáctenos para comenzar.