NJ Sick Pay and W2 Box 13

Thanks for dropping by the Community today, Ramm6.

Let me provide some information on how the payroll service handles third-party sick pay.

The information on the W-2 form depends on the payroll data entered into QuickBooks Desktop (QBDT) Payroll. This also goes to recording the third-party sick pay since it can be set up as taxable and non-taxable.

Aside from that, the tax tracking affects how the payroll item is reported on the tax form. Thus, I recommend consulting with a tax adviser for further assistance. They can guide you on how to handle this type of situation and make sure your W-2 data is correct.

I’m adding some links below for additional resources. These articles provide detailed information on how the payroll service handles third-party sick pay and which box it will show on the mentioned tax form.

• Track and submit taxable third-party sick pay
• Enter non-taxable third-party sick pay

Reach out to me again if you have any clarifications or questions about tracking the third-party sick pay. I’ll be more than happy to answer them for you. Have a great rest of the day.

I've already done this. It's taxable.

I'm just not sure if the Taxable Third Party box needs to be checked off on the W-2.

I just had someone out on disability also.  Before you begin make sure you have:

* the final D20 statement from the state or annual report  (you can download a copy here https://www.myleavebenefits.nj.gov/labor/myleavebenefits/employer/YES_info.shtml) 

* annual report from any other third party vendor. 

1) start to create the w2's for 2021

2) You will see a list of employees , press cancel

3) Press Next at the screen overview

4) on the W2 forms interview, scroll down and make sure that SPECIAL SITUATIONS is checked YES

5) Select NEXT

6) you will see a listing of all employees.  Add a checkmark next to the name of the employee who received third pary sick pay. .

7) Select next 

8) you will be prompted to enter the informaiton from the state and any third party companies (items listed above) 

Hope this helps !