New model W-2 language for sick and family leave wages

New guidance from the Internal Revenue Service gives language for employers to use on W-2s regarding qualified sick and family leave wages paid to employees for leave taken this year.

The guidance, Notice 2021-53, provides model language to use as part of the “Instructions for Employee” for the W-2 or on the separate statement provided with the form.

The notice provides guidance under recent legislation, including the Families First Coronavirus Response Act as amended by the COVID-Related Tax Relief Act of 2020, and the American Rescue Plan Act of 2021.

The guidance also applies to self-employed employees to help them determine the amount of any sick and family leave equivalent credits they may claim.