The IRS on Wednesday issued Notice 2026-28, providing guidance on how employers can use the new premium-based method to calculate the expanded credit for paid family and medical leave (PFML) under the 2025 tax law. Expanded coverage: Employers can claim the credit for insurance premiums to provide leave or for wages paid during leave. Employers can claim the credit for insurance premiums to provide leave or for wages paid during leave. Beginning in 2026, employers can claim the credit for premiums paid for PFML insurance policies, in addition to wages paid during PFML leave. That credit ranges from 12.5% to 25% of wages paid to qualifying employees for up to 12 weeks of family and medical leave per tax year.