IRS sets new rules on reporting COVID leave.

If some of your employees have taken coronavirus-related sick leave this year, the IRS has released new guidance explaining how your organization should report that information to your employees.

The IRS says employers who provide paid leave under the Families First Coronavirus Response Act must separate those payments and report them on Form W-2 in the "Other" Box 14.

That way, employees can see exactly how much paid COVID-19 leave they received. Plus, separating the information provides the IRS with a way to check the employer's figures against tax credits claimed by the company for that leave. Employers whose numbers don't match face fines and penalties.

A reminder: The FFCRA requires employers with fewer than 500 workers to provide limited paid leave for some COVID-19 reasons.

The FFCRA provides up to two weeks of paid leave of up to $511 per day for those quarantined, ill or undergoing testing, and up to $200 per day for employees caring for...