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IRS Provides Guidance on Reporting Qualified Sick and Family Leave Wages Paid

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Employers must report the amount of qualified sick and family leave wages paid to employees under the Families First Coronavirus Response Act (FFCRA). The IRS has issued Notice 2020-54 to provide guidance to employers on how to report this on Form W-2.

Here are key points in the guidance to be aware of:

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

You can read the full Notice 2020-54 on the IRS website.

Contact us online or at info@capincrouse.com with any questions about how this may affect your organization.

 

Ted Batson

Ted serves as partner, tax counsel, and Professional Practice Leader – Tax. As a certified public accountant and tax counsel, Ted advises exempt organizations of all sizes on a wide range of issues. This includes consulting on tax and employee benefit related matters, representation before state and federal tax authorities, and assistance with firm audit or advisory engagements to formulate advice and counsel on important operating and tax issues. Ted also leads the firm’s tax preparation practice, including IRS Forms 990 and 990-T and related state forms.

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