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The Families First Coronavirus Response Act (FFCRA) requires covered employers to provide employees with up to 80 hours of paid sick leave and up to 10 weeks of partially compensated leave under the Family and Medical Leave Act (for COVID-19 specified reasons).
New guidance issued by the IRS and the U.S. Treasury Department states that employers must report the amount of qualified sick and family leave wages paid to employees under FFCRA on their W-2. The leave compensation should be reported either in Box 14 of Form W-2 or in a separate statement provided with the form. The reporting requirement also provides information for self-employed individuals who need to claim tax credits for FFCRA leave wages.
Employers may take a dollar-for-dollar reimbursement through tax credits for all qualify wages paid under FFCRA. Tax credits also extend to the amounts paid or incurred to maintain health insurance coverage.
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This blog is intended to be a compilation of information and resources pulled from federal, state and local agencies. This is not intended to be legal advice. For up to the minute information and guidance on COVID-19, please follow the guidelines of the Centers for Disease Control and Prevention (CDC) and your local health organizations.
National Insurance Services is not a law firm and no opinion, suggestion, or recommendation of the firm or its employees shall constitute legal advice. Readers are advised to consult with their own attorney for a determination of their legal rights, responsibilities and liabilities, including the interpretation of any statute or regulation, or its application to the readers’ business activities.
