On September 7th, 2021, the IRS issued Notice 2021-53 which provided guidance for employers on how to report sick and family leave wages for leave taken under the Families First Coronavirus Relief Act (FFCRA).
Employers who claim tax credits for leave wages under relevant legislation need to report qualified 2021 FFCRA leave wages to employees. This can be done on a 2021 Form W-2, Box 14, or in a separate statement given with the Form W-2.
There are separate reporting requirements for leave provided from January 1, 2021 to March 31, 2021 and for leave given from April 1, 2021 to September 30, 2021. According to the IRS notice, leave wages must be entered on Box 1,3, or 5 of Form W-2. Model language is provided in the notice to be used in Form W-2, Box 14 “Instructions for Employee” or in a separate statement.
It’s important to know only employers claiming tax credits for FFCRA wages must adhere to the reporting requirements.
For more detailed information, click here. Should you have any questions regarding this information, please do not hesitate to contact Creative Benefits, Inc. at 866-306-0220 or email@example.com.