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9.9.21 | , , , , |

IRS Releases Guidance on Reporting 2021 Qualified Sick and Family Leave Wages

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On September 7, 2021, the IRS released guidance on qualified sick leave and family leave wages provided in 2021. Notice 2021-53 provides employers with guidance on the requirement to report qualified sick leave wages and family leave wages on either the employee’s Form W-2 (Box 14) or in a separate statement provided with the Form W-2.

The qualified sick leave and family leave wages were provided to employees under the Families First Coronavirus Response Act, as amended by the COVID-related Tax Relief Act of 2020 and under sections 3131, 3132, and 3133 of the Internal Revenue Code for leave provided in 2021.

Notice 2021-53 provides additional guidance on reporting the qualified leave wages paid during the January 1, 2021, through March 31, 2021 timeframe, as well as from April 1, 2021, through September 30, 2021.

Notably, it:

  • Explains the differences between the qualified leave wages that may be paid during the two timeframes mentioned above
  • Provides employers with model language that they may use in the separate statement attached to the employee’s Form W-2, should they elect to do so
  • Provides guidance for self-employed individuals
  • Reiterates the eligibility categories for which types of leave may be eligible as qualified leave wages
Changes to the Per Diem Rate for Travel Effective October 1

The IRS also released its annual update of per diem rates applicable to travel, effective October 1, 2021:

  • Through September 30, 2021: $292 (high-cost areas) and $198 for all other localities
  • As of October 1, 2021: $297 (high-cost areas) and $200 for all other localities

The standard per diem rate did not change.

Please contact us with any questions.

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