Treasury, IRS Issue Guidance on Reporting Qualified Sick and Family Leave Wages Paid

Treasury, IRS Issue Guidance on Reporting Qualified Sick and Family Leave Wages Paid

WASHINGTON – The Treasury Department and the IRS provided guidance in Notice 2020-54 to employers requiring them to report the amount of qualified sick and family leave wages paid to employees under the Families First Coronavirus Response Act (FFCRA) on Form W-2.

Employers will be required to report these amounts either on Form W-2, Box 14, or in a statement provided with the Form W-2. The guidance provides employers with optional language to use in the Form W-2 instructions for employees.

The wage amount that the notice requires employers to report on Form W-2 will provide self-employed individuals who are also employees with the information necessary to determine the amount of any sick and family leave equivalent credits they may claim in their self-employed capacities.

Additional information about tax relief for those affected by the COVID-19 pandemic can be found on IRS.gov.

Original Information provided by the IRS – Issue Number – IR-2020-144 on July 8, 2020

This information is provided with the understanding that Payroll Partners is not rendering legal, accounting, or other professional advice or service. Professional advice on specific issues should be sought from an accountant, lawyer, or other professional.

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