IRS Updates Virus Paid Sick Leave Reporting Rules for Employers

Businesses paying sick- and family-leave benefits to workers affected by the coronavirus now have a new blueprint from the IRS detailing how to report the information.

In guidance issued Wednesday, the IRS updated employers on how to fulfill their requirements to report on W-2 forms or separate statements the amount of sick leave and family leave wages paid to individuals under the Families First Coronavirus Response Act, passed by Congress in March.

The law required employers with fewer than 500 workers to provide two weeks of paid sick leave to employees unable to work due to the virus. Those companies ...