Issue link: http://palletcentral.uberflip.com/i/1040159
32 PalletCentral • September-October 2018 palletcentral.com benefit tax free (up to $260 per month in 2018). But you cannot deduct this cost. • Employee moving expenses. If you pay an employee's moving expenses, you can't write off this expense. • Fines and penalties. Payments after 2017 due to the violation of the law are not deductible if the government is a complainant. • Sexual harassment awards. Payments after 2017 for sexual harassment or abuse are not deductible if subject to a nondisclosure agreement. New Tax Credit There's a new tax credit that employers can claim for offering paid family and medical leave. Whether or not federal or state law requires you to offer unpaid leave, if you pay employees at least 50% of their normal wages while they are on family or medical leave, you can take a tax credit of 12.5% to 25% (depending on the percentage of wages you pay). This tax credit only applies for 2018 and 2019 unless Congress chooses to extend it. Final Thought Due to the extensive and complex changes from tax reform, it's highly advisable to meet now with your CPA or other tax advisor and discuss which of these or other tax changes affect your business. Learn what actions you should take to optimize the tax results for your situation. PC FINANCE Barbara Weltman is a tax and business attorney, prolific author with such titles as J.K. Lasser's Small Business Taxes and Smooth Failing, and trusted professional advocate for small businesses and entrepreneurs. She is also the publisher of Idea of the Day® and monthly e-newsletter Big Ideas for Small Business® at www.barbaraweltman.com. Whether or not federal or state law requires you to offer unpaid leave, if you pay employees at least 50% of their normal wages while they are on family or medical leave, you can take a tax credit of 12.5% to 25% (depending on the percentage of wages you pay).