Feb 1, 2021

H-2A wages now eligible for FFCRA tax credit, IRS determines

The IRS has reversed course on its interpretation of whether H-2A wages are eligible for the Families First Coronavirus Response Act (FFCRA) tax credit.

On Jan. 28, the IRS issued new guidance in the form of an FAQ stating that employers are entitled to tax credits under the FFCRA for qualified leave wages paid to H-2A workers.

The FAQ can be found on the IRS website.

The IRS withdrew its original guidance disallowing the credit for H-2A wages.

– Varnum Attorneys at Law