Have you paid out any Families First Coronavirus Response Act (FFCRA) sick leave or expanded family leave wages in 2020? If so, you will need to report those amounts on the employee’s 2020 Form W2 in either Box 14 or on a separate statement that goes with the Form W2. The required reporting provides employees who are also self-employed with information necessary for properly claiming qualified sick leave equivalent or qualified family leave equivalent credits under the FFCRA. This additional reporting is intended to keep a taxpayer from receiving more than the maximum benefit amount for each type of sick and family leave as stated in the FFCRA.
The FFCRA wages for sick and expanded family leave will be reported in Boxes 1, 3 (up to the SS wage base), 5 and 16. In addition, the FFCRA wages will need to be reported in Box 14 or on a separate statement. Specific verbiage will need to be used to detail out each type of FFCRA wages that were paid.
- Sick leave wages subject to $511 per day limit
- Sick leave wages subject to $200 per day limit
- Emergency family leave wages
If a separate statement is used, the statement is required to accompany the W2 if mailed or be available at the same time as an electronic copy of the W2. You can find sample verbiage for a separate statement on page 9 of the IRS Notice found here.
If you have questions on the reporting process, or what needs to be included contact our experts today.