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IRS Updates Virus Paid Sick Leave Reporting Rules for Employers

July 8, 2020, 11:25 PM

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 also must offer up to 10 weeks of partially paid leave, under expanded Family and Medical Leave Act coverage, to workers who must care for a child whose school or daycare is closed due to the pandemic. The new benefits expire Dec. 31.

“In order to provide self-employed individuals who also receive wages or compensation as employees with the information they need to properly claim any qualified sick leave equivalent or qualified family leave equivalent credits for which they are eligible, this notice requires employers to report to employees the amount of qualified sick leave wages and qualified family leave wages paid to the employees,” the IRS stated in the guidance.

To contact the reporter on this story: Ben Penn in Washington at bpenn@bloomberglaw.com

To contact the editors responsible for this story: John Lauinger at jlauinger@bloomberglaw.com; Meghashyam Mali at mmali@bloombergindustry.com

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