Reporting Paid Sick and Family Leave
The Families First Coronavirus Response Act requires employers with fewer than 500 employees to provide paid sick leave or family and medical leave to employees who miss work for specified reasons related to COVID-19. An IRS Notice provides guidance on how employers should report these payments.
According to the notice, employers may report payments on Form W-2, box 14, or in a separate statement. Either way, an employer must separately state the total amount of 1) qualified sick leave wages paid because the employee was quarantined or diagnosed with COVID-19; 2) qualified sick leave wages paid because the employee was caring for a family member; and 3) qualified family leave wages.
This material is generic in nature. Before relying on the material in any important matter, users should note date of publication and carefully evaluate its accuracy, currency, completeness, and relevance for their purposes, and should obtain any appropriate professional advice relevant to their particular circumstances.
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