Sick and Family Leave Reporting Guidance

Sick and Family Leave Reporting Guidance

The Treasury Department and the IRS have issued Notice 2021-53, which provides guidance to employers about using Form W-2 to report the amount of qualified sick and family leave wages paid to employees for leave taken in 2021. This is welcome news for many taxpayers, as this guidance covers the Families First Coronavirus Response Act as amended by the COVID-Related Tax Relief Act of 2020 and the American Rescue Plan Act of 2021.

The new guidance runs about 20 pages. But in brief, it notes that employers will be required to report these amounts to employees either on Form W-2, Box 14, or in a separate statement provided with the Form W-2. The guidance provides employers with model language to use as part of the Instructions for Employee for the Form W-2 or on the separate statement provided with the Form W-2.

Reporting leave from self-employment

The wage amount that the notice requires employers to report on Form W-2 will provide employees who are also self-employed with the information necessary to determine the amount of any sick and family leave equivalent credits they may claim in their self-employed capacities.

The provisions in the notice can be quite technical, so anyone affected should get advice from a qualified tax professional.

Our firm provides the information in this e-newsletter for general guidance only, and does not constitute the provision of legal advice, tax advice, accounting services, investment advice, or professional consulting of any kind. The information provided herein should not be used as a substitute for consultation with professional tax, accounting, legal, or other competent advisers. Before making any decision or taking any action, you should consult a professional adviser who has been provided with all pertinent facts relevant to your particular situation. The information is provided "as is," with no assurance or guarantee of completeness, accuracy, or timeliness of the information, and without warranty of any kind, express or implied, including but not limited to warranties of performance, merchantability, and fitness for a particular purpose.

Copyright © 2018 IndustryNewsletters. All rights reserved.

Other Blog Articles

Onboarding in the Emerging New Normal

As businesses move into an emerging new normal, they need to consider how to bring in the right talent. When they hire, they need to find a way to bring the person onboard.

Why Use Time and Attendance Software?

Documentation is key to wage and hour compliance. Simplify time tracking by automatically calculating hours worked as well as vacation time, holidays, sick days and overtime. There was a time, not so long ago, when time sheets were filled in manually.

Which Benefits Are Legally Required?

Unemployment insurance

Quarterly Employer Advisory with Michael Santo

Quarterly Employer Advisory with Michael Santo

Which Benefits Do Employees Value the Most?

The need to remain competitive spurred one-third of organizations to boost their benefit offerings throughout most of 2016, according to the 2017 Employee Benefits Survey by the Society for Human Resource Management.

Pages

How can we help?

Let Autopaychecks provide you with a single solution to manage Payroll, Human Resources, Time Tracking and Employee Benefits.

Phone: 970-245-4244
Email: info@autopaychecks.com

Autopaychecks, Inc.

Providing payroll, human resources, time tracking and benefits solutions for small-to-mid-sized companies.

iSolved Solutions from Autopaychecks

Connect with Us