IRS Notice 2020-54

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Here is What We Know

  • The new notice provides guidance to employers on the requirement to report the amount of qualified sick leave wages and qualified family leave wages paid to employees under the Families First Coronavirus Response Act.
  • Employers will be required to report these amounts either on Form W-2 or on a separate statement.
  • This reporting provides employees who are also self-employed with information necessary for properly claiming qualified sick leave equivalent or qualified family leaves equivalent credits under the Families First Act.

Background of Families First Act

  • Families First Act generally requires employers with fewer than 500 employees to provide paid leave due to certain circumstances related to the Coronavirus Disease through two separate provisions:
    • The Emergency Paid Sick Leave Act
    • The Emergency Family and Medical Leave Expansion Act
  • Division E of the Families First Act, the Emergency Paid Sick Leave Act requires certain employers to provide employees with up to 80 hours of paid sick leave if the employee is unable to work or telework because the employee:
    • Subject to quarantine or isolation related to COVID-19
    • Has been advised by a health care provider to self -quarantine due to concerns related to COVID-19
    • Is experiencing symptoms of COVID-19 and seeking a medical diagnosis
    • Is caring for an individual who is subject to quarantine or isolation
    • Is caring for a son or daughter if the school or place of care has been closed
    • Is experiencing any other substantially similar condition specified by the Secretary of Health and Human Services with the Secretaries of the Treasury and Labor

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Payroll Admin

Still doing your own payroll? Tasks involved with Payroll and Employee Administration are purely transactional events.

Human Resources

At ESI, our business is all about assisting with the management of any organization’s most valuable resource: people.

Employee Benefits

A benefit package can be a major incentive to lure the best new talent to your workforce and keep your current employees happy.

Risk Management

Risk is a basic part of business. As a co-employer we work to eliminate, mitigate or share your associated legal liabilities.

HCM Technology

ESI continuously utilizes the latest in technological advances through online and mobile solutions to make your life easier.