© 2020 American Payroll Institute, Inc. Inside this issue... IRS Data Affirms Payroll’s Vital Role in Nation’s Tax System. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 IRS Releases Guidance on Form W-2 Reporting of FFCRA Qualified Leave . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 IRS Re-Opens Operations to Process Reporting Agent Authorizations. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 New PPP Flexibility Act Allows Recipients to Defer Employment Taxes. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 IRS Allows Leave-Based Donations for COVID-19 Victims. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 IRS Allows COVID-19-Related Loans, Distributions From Retirement Plans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 IRS Updates FAQs on Employee Retention Credit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 DOL Corrects ‘White Collar’ Rule for HCEs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 DOL to Stop Automatically Assessing Liquidated Damages in FLSA Cases. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 IRS Issues Proposed Rules on Qualified Transportation Fringe Expenses. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 DHS Extends Temporary Requirements for Form I-9 Compliance Again . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 DOL Issues Guidance on Child Labor, FFCRA Leave for Summer. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 DOL Issues Opinion Letters About FLSA Compliance. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 ACA Employer Shared Responsibility Payments Adjusted for 2021 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 DOJ Adjusts Immigration-Related Civil Penalties for Inflation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 Employers Cannot Fire Individuals for Being Homosexual, Transgender. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 ETAAC Presents Annual Report to Congress. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 IRS Announces Quarterly Interest Rates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 CBO Letter Outlines Effects of Tax Deferrals, Other COVID-19 Responses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 Free Reference Book Answers Payroll Questions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 Court Allows Case Challenging Validity of Joint Employer Rules to Proceed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 SSA Will Not Send ‘No Match’ Letters in 2020. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 EEOC Receives Approval to Collect 2019, 2020 EEO-1 Data in 2021. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 Special Report: Panel Answers Questions at Congress Xstream Part 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 State and Local News. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 July 10, 2020 Volume 28 Issue 7 IRS Revises Form 941, Instructions for COVID-19-Related Tax Relief TQuarterly he IRS released a final revised Form 941, Employer’s Federal Tax Return, and its instructions to be used beginning with the second quarter of 2020 (due July 31, 2020). The form has been updated to accommodate reporting of COVID-19-related employment tax credits and other relief. At the end of April, the IRS issued drafts of the 2020 Form 941 and its instructions with “significant changes” to allow reporting of new employment tax credits and other tax relief related to the novel coronavirus (COVID-19 see PAYROLL CURRENTLY, Issue 5, Vol. 28). New credits and tax relief to be reported The IRS significantly revised Form 941 to account for refundable employment tax credits, and its instructions include a new Worksheet 1, which will be used to figure the credits for providing qualified leave wages and the employee retention credit. Tax credits for providing qualified sick and family leave wages. Under the Families First Coronavirus Response Act (FFCRA), private employers with 500 or fewer employees and certain government employers are required to provide employees with two weeks (80 hours) of paid emergency sick leave and 12 weeks, 10 of which are partially paid, of expanded family and medical leave for certain COVID-19- related reasons (together, qualified leave). The FFCRA also provides tax credits to employers that pay qualified leave wages and for qualified health plan expenses allocable to those wages. Here is how to report the credits. Report: The new credit for qualified leave wages on Line 11b and, if applicable, Line 13c. The employee share of social security tax on qualified leave wages on Lines 5a(i) and 5a(ii). Note: Qualified leave wages are not subject to the employer share of social security tax.
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