Tag Archives: sick leave

Amounts Paid to Employees for Sick and Family Leave Wages Are to be Reported on W-2s

Yesterday, July 8, 2020, the Internal Revenue Service (“IRS”) issued Notice 2020-54, which provides guidance to employers on reporting qualified sick and family leave wages paid to employees under the Families First Coronavirus Response Act (FFCRA). Enacted this past March 2020, the FFCRA generally requires employers with fewer than 500 employees to provide paid leave due to certain circumstances related to COVID-19.  Notice 2020-54 directs employers to “separately state” each of the paid sick and family leave wage amounts either in Box 14 of Form W-2 or in a statement that accompanies the Form W-2.

The guidance provides employers with adaptable model language for use in the Form W-2 instructions for employees. An excerpt of that language is as follows:

“Included in Box 14, if applicable, are amounts paid to you as qualified sick leave wages or qualified family leave wages under the Families First Coronavirus Response Act. Specifically, up to three types of paid qualified sick leave wages or qualified family leave wages are reported in Box 14:

  • Sick leave wages subject to the $511 per day limit because of care you required;
  • Sick leave wages subject to the $200 per day limit because of care you provided to another; and
  • Emergency family leave wages.”

The Notice goes on to state that the wage amount required to be reported by employers on Form W-2 will provide self-employed individuals who are also employees with the information necessary to determine the amount of any sick and family leave equivalent credits they may claim in their self-employed capacities. We recommend that employers review the Notice’s model language for their Form W-2 instructions.

Starting in 2017 Federal Contractors Will Be Required to Provide Employees Paid Sick Leave

Last week the Department of Labor issued a final rule requiring federal contractors entering into contracts on or after January 1, 2017, to provide up to 56 hours of paid sick leave to employees.  This rule does not require those employers that already offer equivalent or more generous paid time off plans than that required by the rule to increase the benefits offered to employees. The new rule applies to those contracts that are covered by the Service Contract Act or the Davis-Bacon Act, concessions contract, and service contracts in connection with or federal property or lands. Covered employers will need to post the “Paid Sick Leave for Federal Contractors” poster, which can be downloaded from https://www.dol.gov/whd/regs/compliance/wh1090.pdf.

More information about those contracts that will be impacted, what employees are covered, employee eligibility, carry-over rights, and coordination with existing collective bargaining agreements can be found at https://www.dol.gov/whd/govcontracts/eo13706/.

Jennifer Fowler-Hermes
jfowler-hermes@williamsparker.com
941-552-2558