The IRS has released guidance for employers to follow on W-2s regarding qualified sick and family leave wages paid to employees for leave they have taken this year.
Notice 2021-53 provides model language for businesses to use in Box 14 on the W-2 or in a separate statement provided with the W-2 form. The guidance also applies to the self-employed to help them determine the amount of any sick and family leave equivalent credits they may claim.
The guidance is in accordance with the Families First Coronavirus Response Act (FFCRA), as amended by the COVID-Related Tax Relief Act of 2020, and the American Rescue Plan Act of 2021.
In July 2020, the IRS issued Notice 2020-54, which provided guidance regarding W-2 reporting of qualified sick leave and family leave under FFCRA for wages paid to employees for leave taken in 2020.
Additional information about tax relief for employers affected by the COVID-19 pandemic can be found on IRS.gov.