Updated FAQs for sick leave, family leave credits

February 2, 2021

The IRS has updated its FAQs about recent legislation that extended and amended tax relief to certain small- and mid-sized employers under the Families First Coronavirus Response Act.

The FAQs explain how the COVID-related Tax Relief Act of 2020, enacted Dec. 27, 2020, extends the availability of the tax credits to eligible employers for paid sick and family leave provided through March 31, 2021, as well as other amendments to the credits.

Eligible employers may claim the credits on their federal employment tax returns (e.g., Form 941, Employer's Quarterly Federal Tax Return), but they can benefit more quickly from the credits by reducing their federal employment tax deposits. Learn more.

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