Business Consulting / 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.

If you have any questions or concerns about the above information, please click here to contact a BlueStone representative.

©2021

Keep informed
Receive tips on how you can use outsourcing to save time and improve your business processes.

Related Articles

01/17/2022

Payroll Tax Rates And Contribution Limits For 2022

Below are federal payroll tax rates and benefits contribution limits for 2022. Social Security tax In 2022, the Social Security tax rate

Read More  
01/17/2022

Automatic 401(K) Enrollment: Right For Your Company?

Traditionally, employees have to opt in to retirement plans and make their own decisions about contributions. But there’s another possibility:

Read More  
01/17/2022

How To Retain Employees In A Tough Market

Imagine you’re a nursing home manager trying to replace a nurse’s aide. But the resumes aren’t coming in like they usually do. You

Read More  
BlueStone-logo