New guidance from the IRS explains how employers should report the amount of qualified sick and family leave wages paid to employees under the Families First Coronavirus Response Act.
The Families First Act, enacted March 18, requires employers with fewer than 500 employees to provide paid sick leave or family or medical leave for their employees who miss work for various coronavirus-related reasons.
Notice 2020-54 requires employers to report payments to employees either on box 14 of Form W-2 (Wage and Tax Statement) or in a separate statement. The guidance provides employers with language to use on the Form W-2 or in the statement to employees.