IRS Instructs Employers on Reporting COVID Medical & Sick Leave Wages

Disaster Response
Published

The Internal Revenue Service (IRS) has released Notice 2020-54 (PDF), which requires employers to report the amount of qualified sick and family leave wages paid to employees under the Family First Coronavirus Response Act (FFCRA).

FFCRA generally requires employers with fewer than 500 employees to provide their employees with paid leave because of certain COVID-19-related circumstances occurring in 2020. Employers are entitled to receive a refundable tax credit equal to the amount of qualified wages, including employer-paid health plan expenses, paid under this temporary mandate.

Employers will be required to report these amounts either on Form W-2, Box 14, or in a statement provided with the Form W-2. The guidance also provides employers with optional language to use in the Form W-2 instructions for employees.

Additional information on the FFCRA medical and sick leave tax credits can be found here.

Subscribe to NAHBNow

Log in or create account to subscribe to notifications of new posts.

Log in to subscribe

Latest from NAHBNow

Safety

Jun 12, 2025

National Safety Month: Employee Engagement

NAHB is joining with official safety sponsor Builders Mutual to highlight jobsite safety resources during National Safety Month, an annual observance from the National Safety Council.

Economics

Jun 11, 2025

Will AI Be a Job Creator or Job Destroyer?

Artificial intelligence (AI) is rapidly changing industries — and home building is no exception. From AI-powered design tools to robotic equipment on job sites, the way homes are constructed is already evolving.

View all

Latest Economic News

Economics

Jun 12, 2025

Producer Prices Rise in May: New Construction Input Analysis

Prices for inputs to new residential construction—excluding capital investment, labor, and imports—rose 0.2% in May, following a (revised) decrease of 0.2% in April. These figures are taken from the most recent Producer Price Index (PPI) report published by U.S. Bureau of Labor Statistics.

Economics

Jun 11, 2025

Inflation Up Slightly in May

Despite inflationary pressure from tariffs, inflation in May rose slightly but came in softer than expected. The Consumer Price Index increased from 2.3% in April to 2.4% in May year-over-year, according to the Bureau of Labor Statistics’ report.

Economics

Jun 10, 2025

House Price Appreciation by State and Metro Area: First Quarter 2025

House price growth slowed in the first quarter of 2025, partly due to a decline in demand and an increase in supply. Persistent high mortgage rates and increased inventory combined to ease upward pressure on house prices. These factors signaled a cooling market, following rapid gains seen in previous years.