Employer-focused tax credit insights

Updates on the employer credit for paid family and medical leave and WOTC

Tax and other professionals responsible for workforce-related tax incentives need to be ready to respond to shifts in policy. The One Big Beautiful Bill Act (OBBBA) significantly enhanced and permanently extended the Section 45S employer credit for paid family and medical leave. Notice 2026-28 added further clarity, outlining a new premium-based method for claiming the credit and indicating that proposed regulations are forthcoming. Additionally, as policymakers consider year-end tax priorities, the future of the Work Opportunity Tax Credit (WOTC), which expired on December 31, 2025, remains uncertain, with a potential extension still under consideration. Together, these developments underscore the importance of staying informed to better evaluate changing workforce tax incentives and compliance requirements.

Join us for a post-election discussion, which will include:

• Insights from Washington, DC and implications for lapsed tax credits including the WOTC
• An overview of the paid family leave tax credit under Section 45S – how employers can offset the cost of offering paid leave to their employees
• Key trends for industry sectors that are already claiming or evaluating the Section 45S credit
• Recent IRS guidance related to Notice 2026-28 and open technical questions for taxpayers

Learning objectives

Recognize how the 2026 midterm election results may affect the future of employer-focused tax credits; evaluate how the enhanced and permanent Section 45S credit can help offset the cost of employer-provided paid leave programs; analyze recent IRS guidance in Notice 2026-28.

Panelists

• Wes Coulam, Senior Managing Director, Washington Council Ernst & Young, Ernst & Young LLP
• Ron Xavier, Senior Managing Director, Indirect Tax, Ernst & Young LLP
• Lindsay Rice, Senior Managing Director, Indirect Tax, Ernst & Young LLP

Moderator

• Ali Master, Partner, Indirect Tax, Ernst & Young LLP

EY webcast managed and produced by Ernst & Young LLP’s Tax Technical Knowledge Services Group, Washington, DC: Lynn Fairfax