IRS Issues New Guidance for Employers to Report Sick and Family Leave Wages for Coronavirus Relief

The Internal Revenue Service and Treasury Department announced new guidance for employers requiring them to report the amount of qualified sick leave and family leave wages they paid to employees under the Families First Coronavirus Response Act on Form W-2.

Employers will now be required to report sick and family leave amounts either on Form W-2, Box 14, or in a statement provided with the Form W-2.

Under the Families First Act, employers must separately state the total amount of qualified sick leave wages paid because the employee was diagnosed or had to quarantine due to COVID-19 and also the total wages paid because the employee was caring for a sick individual and the total amount of qualified family leave wages paid.

The new guidance provides employees who are self-employed with the wage information they need to determine the amounts of sick and family leave equivalent credits they can claim.

The Families First Act generally requires employers with fewer than 500 employees to provide paid leave related to COVID-19 through the Emergency Family and Medical Leave Expansion Act and the Emergency Paid Sick Leave Act.

This content was created during a snapshot in time and should be relied upon as such. Legislation and guidance continue to change as we progress through the current fluid environment and the information may not be applicable at a later date.  All content and materials are for general information purposes only. If you have questions regarding your specific situation, please contact us.