In January 2021, the IRS quietly announced a major change to employer W-2 reporting related to the Consolidated Appropriations Act, 2021 (P.L. 116-260). A FAQ explained that employers must report the total FFCRA sick and family leave wages paid in both 2020 and 2021 on the 2021 W-2. The Form W-2 has never included information from the immediately preceding year, plus the year before that. Data would not be available for many employees (such as job changers). NPRC wrote to the IRS to suggest that they instead refer taxpayers to their 2020 W-2 or tax return if needed. The IRS acknowledged the NPRC letter on a payroll industry call and subsequently modified the FAQ accordingly.
You also might be interested in
- SFRP Industry Payroll Provider March 3, 2022 Event: Follow Up & Next Steps
- IRS Adopts NPRC Suggestion for FFCRA Reporting on Forms W-2
- NPRC Comments on Early ACH Release
- NPRC Statement on Employee Social Security Tax Deferral
- NPRC and APA Offer Recommendations to Treasury and IRS re Social Security Tax Deferrals