IRS Releases Guidance on Form W-2 Reporting of FFCRA Qualified Leave

IRS Releases Guidance on Form W-2 Reporting of FFCRA Qualified Leave

The IRS released guidance on how employers must report the amount of emergency sick leave wages and expanded family leave wages (together, qualified leave) paid to employees under the Families First Coronavirus Response Act (FFCRA) between April 1 and December 31, 2020 [Notice 2020-54, 7-8-20].

Employers are required to report these amounts either on Form W-2, Wage and Tax Statement, in Box 14 (Other), or on a separate statement. The notice instructs employers how to separately label the qualified leave. The notice also includes language employers may use for employee instructions to provide additional information about qualified leave wages.

Using Separate Statements

If an employer uses a separate statement to report the wages, and the employee receives a paper Form W-2, then the statement must be included with the Form W-2 provided to the employee. If the employee receives an electronic Form W-2, then the statement should be provided in the same manner and at the same time as the Form W-2.

Original Content – July 09, 2020

This information is provided with the understanding that Payroll Partners is not rendering legal, human resources, or other professional advice or service. Professional advice on specific issues should be sought from a lawyer, HR consultant or other professional.