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Notice 2020-54: Reporting qualified sick leave, qualified family leave wages (COVID-19)

Qualified sick leave, qualified family leave wages

The IRS released an advance version of Notice 2020-54 as guidance for employers regarding the requirement to report amounts of qualified sick leave wages and qualified family leave wages paid to employees under the “Families First Coronavirus Response Act” (Pub. L. No. 116-127).

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The “Families First Act” provides temporary tax credits for certain employers and self-employed individuals for emergency paid leave. Read TaxNewsFlash

Notice 2020-54 [PDF 79 KB] reflects that employers are required to report the amounts of qualified sick leave wages and qualified family leave wages either on Form W-2, Box 14, or on a separate statement. The notice provides sample language that can be used to report the paid leave. The Box 14 reporting or separate statement requirements are in addition the requirements to report the wages in Box 1, 3, and 5. 

Also, the requirements in the notice  provide self-employed persons with information that allows them to properly claim qualified sick leave equivalent or qualified family leave equivalent credits under the legislation.

Read a related IRS release: IR-2020-144

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