IRS Issues Guidance on Reporting Qualified Sick
and Family Leave Wages
Today, the Internal Revenue Service (IRS) issued Notice 2020-54 which provides guidance to employers on the requirement to report qualified sick and family leave wages paid under the Families First Coronavirus Response Act.

Employers are required to report these amounts either on Form W-2, Box 14, or on a separate statement. The guidance provides employers with optional language to use in the Form W-2 instructions for employees.

The  Families First Coronavirus Response Act requires employers with under 500 employees to provide their employees with paid sick leave or expanded family and medical leave for specified reasons related to COVID-19.

Eligible employers are entitled to receive a tax credit in the full amount of the required sick leave and family leave, plus related health plan expenses and the employer’s share of Medicare tax on the leave, for the period of April 1, 2020, through December 31, 2020. Further information regarding the tax credits can be found here .

For any questions, please contact Kevin McKenney at