IRS Publishes Guidance on Reporting COVID-19-Related Leave Wages

  • by AGD Washington Advocacy Representative
  • Jul 16, 2020
On July 8, the Treasury Dept. and Internal Revenue Service (IRS) provided guidance to employers requiring them to report the amount of qualified sick and family leave wages paid to employees under the Families First Coronavirus Response Act (FFCRA) on W-2 Forms. The FFCRA requires certain employers to provide employees with paid sick leave or expanded family and medical leave for specified reasons related to COVID-19.

Employers will be required to report these amounts either on Form W-2, Box 14, or in a statement provided with the Form W-2. The guidance provides employers with optional language to use in the Form W-2 instructions for employees. The wage amount that the notice requires employers to report 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.

Additional information regarding the employer COVID-19-related leave requirements created by the FFCRA may be found on Dept. of Labor's website.

Impact on General Dentistry: AGD encourages members to monitor all official guidance to ensure they are following existing regulations. This guidance would not apply to employers with less than 50 employees that are exempt from the FFCRA leave requirements if it would jeopardize the viability of the employer's business as a going concern. This exemption may apply to many dental practices.