IRS Wage Reporting Updates: Sick and Family Leave

Please note: This blog is current to the date of its publication, September 14, 2021. For more recent updates, contact SST’s experts

The IRS recently issued guidance (Notice 2021-53) on how to report the qualified sick and family leave wages provided to employees in 2021. This guidance is separate from Notice 2020-54, which details employer reporting requirements for qualified wages from April 1 through Dec. 31, 2020.

Qualified sick and family leave wages are wages that an employer is required to pay under the Families First Coronavirus Response Act (FFCRA), P.L. 116 – 127, and under Secs. 3131, 3132 and 3133.

Notice 2021-53:

  • Provides guidance for self-employed individuals
  • Explains the difference between qualified leave wages for the two identified time periods of Jan. 1 through March 31, 2021, and April 1 through Sept. 30, 2021
  • Provides specific tax reporting instructions for employers

The Journal of Accountancy recently published additional information on Notice 2021-53 in this article. To learn more about how these updates might affect your organization, contact the experts at SST today.