Employers claiming tax credits for the cost of providing paid sick and family leave to employees for leave related to COVID-19, plus allowable qualified health plan expenses and the employer's share of Medicare taxes, must retain records and documentation related to and supporting each employee's leave to substantiate the claim for the credits.

Employers must also retain Form 941 Employer's Quarterly Federal Tax Return, Form 7200 Advance of Employer Credits Due to COVID-19, and any other applicable filings made to the IRS requesting the credit.