Page 10 - TaxAdviser_2022

TAX CLINIC

Included in box 14, if applicable,
Only employers that claim tax credits under are amounts paid to you as qualified
sick leave wages or qualified family
these provisions are required to separately leave wages under the Families First
report qualified sick leave wages and qualified Coronavirus Response Act and/or
Secs. 3131 and 3132 of the Internal
family leave wages to their employees. Revenue Code. Specifically, up to
six types of paid qualified sick leave
wages or qualified family leave wages
may be reported in box 14:
■ The total amount of qualified with respect to leave provided to ■ Sick leave wages subject to the
sick leave wages paid for reasons employees during the period begin- $511 per day limit paid for leave
described in paragraph (4), (5), or (6) ning on April 1, 2021, through Sept. taken after Dec. 31, 2020, and
of Section 5102(a) of the EPSLA 30, 2021. In labeling this amount, before April 1, 2021, because of
with respect to leave provided to employers must use the following, or care you required.
employees during the period begin- similar, language: “sick leave wages ■ Sick leave wages subject to the
ning on Jan. 1, 2021, through March subject to the $200 per day limit paid $200 per day limit paid for leave
31, 2021. In labeling this amount, for leave taken after March 31, 2021, taken after Dec. 31, 2020, and
employers must use the following, or and before Oct. 1, 2021.” before April 1, 2021, because of
similar, language: “sick leave wages ■ The total amount of qualified family care you provided to another.
subject to the $200 per day limit paid leave wages paid to the employee ■ Emergency family leave wages
for leave taken after Dec. 31, 2020, under the EFMLEA with respect to paid for leave taken after Dec. 31,
and before April 1, 2021.” leave provided to employees during 2020, and before April 1, 2021.
■ The total amount of qualified family the period beginning on April 1, ■ Sick leave wages subject to the
leave wages paid to the employee 2021, through Sept. 30, 2021. In $511 per day limit paid for leave
under the EFMLEA with respect to labeling this amount, employers must taken after March 31, 2021, and
leave provided to employees during use the following, or similar, lan- before Oct. 1, 2021, because of
the period beginning on Jan. 1, 2021, guage: “emergency family leave wages care you required.
through March 31, 2021. In labeling paid for leave taken after March 31, ■ Sick leave wages subject to the
this amount, employers must use 2021, and before Oct. 1, 2021.” $200 per day limit paid for leave
the following or similar language: If a separate statement is provided to taken after March 31, 2021, and
“emergency family leave wages paid an employee receiving a paper copy of before Oct. 1, 2021, because of
for leave taken after Dec. 31, 2020, Form W-2, it must be included with the care you provided to another.
and before April 1, 2021.” Form W-2 sent to the employee. If the ■ Emergency family leave wages
■ The total amount of qualified employee receives an electronic Form paid for leave taken after March
sick leave wages paid for reasons W-2, the separate statement must be 31, 2021, and before Oct. 1, 2021.
described in paragraph (1), (2), or (3) provided in the same manner and at the If you have self-employment
of Section 5102(a) of the EPSLA same time as the electronic Form W-2. income in addition to wages paid
with respect to leave provided to by your employer and you intend
employees during the period begin- Model language for optional to claim any qualified sick leave or
ning on April 1, 2021, through Sept. employee instructions qualified family leave equivalent
30, 2021. In labeling this amount, Because employees may not understand credits, you must report the qualified
employers must use the following, or why this information is being provided sick leave or qualified family leave
similar, language: “sick leave wages to them, employers can include an expla- wages on Form 7202, Credits for Sick
subject to the $511 per day limit paid nation in the instructions for employees Leave and Family Leave for Certain
for leave taken after March 31, 2021, on Form W-2 or in a separate statement Self-Employed Individuals, included
and before Oct. 1, 2021.” sent to the employee. Notice 2021-53 with your income tax return, and may
■ The total amount of qualified suggests that employers consider using have to reduce (but not below zero)
sick leave wages paid for reasons the following model language (modified any qualified sick leave or qualified
described in paragraphs (4), (5), and as necessary) to explain the purpose of family leave equivalent credits by
(6) of Section 5102(a) of the EPSLA including this information: the amount of these qualified leave

8 January 2022 The Tax Adviser