Household Employers Must Report Pay for FFCRA Leave on Form W-2

Jul 10, 2020 | COVID-19, Household Payroll & Taxes

Under new guidance from the IRS, household employers are required to report the amount of qualified sick and family leave wages paid to their workers under the Families First Coronavirus Act on Form W-2.

Employers – including families who have hired someone to work in their home – are required to report the amount of qualified sick and family leave wages paid to their employees under the Families First Coronavirus Response Act (FFCRA) on Form W-2.

This is according to guidance provided this week by the IRS and the U.S. Treasury Department.

Reporting FFCRA Compensation on the W-2

Employers will be required to report FFCRA leave compensation in either Box 14 of Form W-2, or in a statement provided with Form W-2.

Household employers must provide Form W-2 (Wage and Tax Statement) by January 31 to each employee who will then include Form W-2 when they file their personal tax return.

Employee Leave Under FFCRA

As a reminder, the FFCRA requires household employers to provide their workers with up to 80 hours of paid sick leave and up to 10 weeks of partially compensated leave under the Family and Medical Leave Act for specified reasons relating to COVID-19.

Employers may take a dollar-for-dollar reimbursement through tax credits for all qualifying wages paid under the FFCRA.

GTM can help

Our nanny tax and payroll plans include an optional year-end service that includes producing Form W-2 for your employees, submitting Form W-3 to the Social Security Administration on your behalf, and creating Schedule H, which reports your household employment taxes and is submitted with your personal tax return.

Skip the hassles of year-end tax work – now with the additional task of reporting FFCRA paid leave – by letting GTM Payroll Services take care of it all. Learn more with a complimentary, no-obligation consultation with a household employment expert. Just call us (800) 929-9213 and we’ll answer all your questions about household employment taxes, payroll, and compliance.