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Source: Andrew Jackson Law, P.C, 1/29/21
The IRS has updated its guidance concerning tax credits for FFCRA sick leave benefits paid to H-2A workers. If you paid FFCRA benefits to H-2A workers in 2020 you should pass this information along to your tax preparer to take in consideration when preparing IRS Form 943, Employer's Annual Federal Tax Return for Agricultural Employees. See https://www.irs.gov/newsroom/covid-19-related-tax-credits-what-is-an-eligible-employer-faqs 19f. Can employers claim the tax credit for amounts paid to H-2A
visa holders? (Updated January 28, 2021)Yes. The FFCRA sections 7001(c) and 7003(c) define “qualified leave wages” for purposes of the EPSLA and the Expanded FMLA, respectively, as wages as defined in section 3121(a) of the Internal Revenue Code (the “Code”), determined without regard to section 3121(b)(1)-(22) of the Code (and section 7005(a) of the FFCRA). Therefore, although section 3121(b)(1) of the Code excludes from “employment” services performed by H-2A workers, employers are entitled to tax credits under the FFCRA for qualified leave wages paid to H-2A workers. -- Andrew M. Jackson, Attorney Andrew Jackson Law P.C. 407 College St (28328) PO Box 27 Clinton, NC 28329-0027 Main office number: 910-592-4121 Cell: 910-214-6010
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