January 28, 2021

Qualified Emergency Paid Sick Leave Act (EPSLA) and the Emergency Family and Medical Leave Expansion Act (EFMLEA) Leave Payments Reporting in Box 14 of 2020 Form W-2

Action Required by Department: Share the following information with all departmental human resources (HR) office employees.

Description: Under the Families First Coronavirus Response Act (FFCRA), employers are required to provide paid leave for specified reasons related to the Coronavirus Disease 2019 (COVID-19) through two separate provisions: the Emergency Paid Sick Leave Act (EPSLA) and the Emergency Family and Medical Leave Expansion Act (EFMLEA). The FFCRA’s paid leave provisions are effective April 1, 2020, and apply to leave taken between April 1, 2020, and December 31, 2020. The Internal Revenue Service issued guidance IRS Notice 2020-54 to employers on the required reporting of qualified sick leave and family leave wages paid under the FFCRA. The guidance requires employers to separately report the amount of emergency sick and emergency family leave paid to employees under FFCRA. The required reporting is on the 2020 Form W-2, Box 14and provides employees who are also self-employed with amounts they may need to figure their qualified sick leave equivalent or equivalent family leave equivalent credits under FFCRA when they file their taxes.

INFORMATION FOR FFCRA AND/OR EFMLA REPORTED IN BOX 14

Included in box 14, if applicable, are amounts paid as qualified sick leave wages or qualified family leave wages under the Families First Coronavirus Response Act. Specifically, up to two types of paid qualified sick leave wages or qualified family leave wages are reported in Box 14:

Emergency paid sick leave wages; and

Emergency family leave wages.

If an employee has self-employment income in addition to wages paid by the State of California, and they intend to claim any qualified sick leave or qualified family leave equivalent credits, they must report the qualified sick leave or qualified family leave wages on Form 7202, Credits for Sick Leave and Family Leave for Certain Self-Employed Individuals, included with their income tax return and reduce (but not below zero) any qualified sick leave or qualified family leave equivalent credits by the amount of these qualified leave wages. If they have self-employment income, they should refer to the instructions for their individual income tax return for more information.

BOX 14 SICK LEAVE WAGES DESCRIPTION

FFCRA – Emergency paid sick leave wages subject, up to $5,111 for the year.
EFMLA – Emergency family leave wages, up to $10,000.00 for the year.

For additional information regarding on Form W-2 Wage and Tax Statements, please refer to the 2020 Form W-2 Wage and Tax Statement FAQs.

For additional information on FFCRA, please refer to FFCRA Questions and Answers.

For additional questions regarding this letter, please contact the Statewide Tax Support Program at PPSDSTSP@sco.ca.gov.

Population Affected: All Human Resources Offices

Contacts:

Statewide Customer Contact Center (916) 372-7200

HR Suggestions Email (All HR Staff) PPSDHRSuggestions@sco.ca.gov

CS Escalation Email (HR Supervisors and Managers) PPSDOps@sco.ca.gov

Cal Employee Connect Email connecthelp@sco.ca.gov

Cal Employee Connect Feedback Email connectfeedback@sco.ca.gov

SCO Key Initiatives:

Cal Employee Connect Project

CalATERS Replacement Project

California State Payroll System Project

Extended Keying – February 2021

Action Required by Department: Share the following information with all human resources (HR) office employees.

Description: The State Controller's Office (SCO) is extending the keying hours for February 2021. This is in response to the COVID-19 emergency, which may have resulted in workforce changes in departments. Please view the Extended Keying Calendar for the most up to date information.

Population Affected: All Human Resources Offices.