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IRS offers guidance on sick, family leave reporting requirements

July 10, 2020 Washington — The Internal Revenue Service issued guidance July 8 intended to help employers fulfill the requirement of reporting the amount of qualified sick leave wages and qualified family leave wages paid to employees under the Families First Coronavirus Response Act.

The act generally requires employers with fewer than 500 employees to provide paid leave due to certain circumstances related to COVID-19, including those unable to work due to the virus. It also requires employers to offer up to 10 weeks of partially paid leave to workers who must care for a child whose school or daycare is closed because of the pandemic.

Employers will be required to report these amounts either on Form W-2, Box 14, or on a separate statement.

The IRS guidance says, “In order to provide self-employed individuals who also receive wages or compensation as employees with the information they need to properly claim any qualified sick leave equivalent or qualified family leave equivalent credits for which they are eligible, this notice requires employers to report to employees the amount of qualified sick leave wages and qualified family leave wages paid to the employees.”

This guidance does not pertain to the exemption for employers with less than 50 employees if leave is requested because the employee’s child’s school or place of care is closed, or child care provider is unavailable due to COVID-19-related reasons, provided that the employee’s such leave would jeopardize the viability of the employer’s business as a going concern.

For more information on the act, visit the U.S. Department of Labor website.