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IRS Releases Guidance on Form W-2 Reporting of Qualified Leave Wages

BY: Jyme Mariani, Esq. | 09/09/21

The IRS released guidance on how employers must report the amount of emergency sick leave wages and expanded family leave wages (together, qualified leave) paid to employees for leave taken in 2021 on Form W-2, Wage and Tax Statement [Notice 2021-53, 9-7-21].

Employers are required to report these amounts either on Form W-2 in Box 14, Other, or on a separate statement. The reported wage amounts will provide employees who are also self-employed with the information necessary to determine the amount of any qualified leave equivalent credits they may claim.

Model Language

Notice 2021-53 includes language employers may use for employee instructions to provide additional information about qualified leave wages. The model language begins on page 18 of the notice. The IRS modified the language from the information it provided in 2020.

To learn more about federal and state laws, regulations, and information to keep your company's payroll operations in compliance, check out Payroll Source Plus!


Jyme Mariani, Esq., is Managing Editor of Payroll Currently and Payroll Information Resources for the APA.