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

BY: Jyme Mariani, Esq. | 07/09/20

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 under the Families First Coronavirus Response Act (FFCRA) between April 1 and December 31, 2020 [Notice 2020-54, 7-8-20].

Employers are required to report these amounts either on Form W-2, Wage and Tax Statement, in Box 14 (Other), or on a separate statement. The notice instructs employers how to separately label the qualified leave. The notice also includes language employers may use for employee instructions to provide additional information about qualified leave wages.

Using Separate Statements

If an employer uses a separate statement to report the wages, and the employee receives a paper Form W-2, then the statement must be included with the Form W-2 provided to the employee. If the employee receives an electronic Form W-2, then the statement should be provided in the same manner and at the same time as the Form W-2.

For more information about the new Form W-2 reporting requirements, see the July issue of Payroll Currently, which will be published on July 10.

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.