U.S. Internal Revenue Service building in Washington, D.C. May 14, 2013. (Photo: Diego M. Radzinschi/THE NATIONAL LAW JOURNAL.)

At some point in 2020, most smaller businesses were legally required to provide paid time off to employees who were impacted by the Covid-19 pandemic. The Families First Coronavirus Response Act (FFCRA) created mandatory leave provisions that allowed employees to take paid time off for several different coronavirus-related reasons, including to provide care for children and family members. Now, employers are grappling with the aftermath—in terms of IRS wage reporting requirements.

Small businesses who haven’t already completed their reporting obligations should pay close attention to the reporting guidance—and those who have should confirm that 2020 FFCRA wages were reported correctly to avoid problems down the line.

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