Hello, there. tmarie2. Can you please share what payroll subscription you are using. Doing so will allow us to provide you with a more targeted response. Let me assist you in accurately recording your employee's third-party sick pay in QuickBooks Desktop.
If you are using QuickBooks Desktop Payroll Enhanced you need to report taxable third-party sick pay on your employee W-2, 941, and 940 that was withheld by the third party. Here's how:
- Go to Employees, then Payroll Taxes and Liabilities.
- Select Adjust Payroll Liabilities.
- Select Company Adjustment.
- Under the Item Name column, select Social Security Employee and Medicare Employee and enter a negative amount of the tax withheld by the third party.
- Select Accounts Affected.
- Select Affect liability and expense accounts.
- Then, hit OK.
Then, override line 8 with a negative amount for Social Security Employee and Medicare Employee withheld on the sick pay by the third party. See Section 6 of Publication 15A for details on tax adjustments on third-party sick pay.
But if you are using QuickBooks Desktop Payroll Assisted, then you need to verify the following info on the third-party report:
- Employee's name
- Employee's Social Security Number
- Sick pay paid to the employee
- Federal income tax withheld
- Employee Social Security tax withheld
- Employee Medicare tax withheld
- State tax withheld
- Federal Employer Identification Number (EIN) number
Then, email the third-party report to Intuit at RNAmendment_Team@intuit.com.
If any of the info is missing from the third-party report or Explanation of Benefits (EOB), contact the third party to obtain it.
Moreover, you can check if the liabilities are updated by running these reports:
By carefully following these steps, you can accurately correct your payroll tax liabilities and ensure compliance. If you have questions or need more assistance, feel free to reply. I am dedicated to helping you efficiently and accurately navigate this process.
