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Leslie37
Level 1

Tracking and submitting 3rd party sick pay

I have an employee that received disability pay thought Colonial life.
Since the deduction was taken out pretax I have to pay the employer portion of FICA and include the money rhe received as income on his W2. I have followed 4 pages of instruction from QB to set everything up but now I am stuck. After the initial set up there are 3 scenarios to follow. 1-Employer withholds taxes and submits W2 2 Third-party withholds, employer submits W2 3-Third part withholds taxes, submits W2. Colonial life withheld the employee portion of FICA and submitted it to the IRS, but I need to pay the employer portion and include the wages on his W2. This is where I get stuck. I have followed the instruction for scenario 2 but when I create the paycheck following the QB instructions it does not populate SS and Medicare taxes to show me what I need to pay. Any ideas?  I have spend hours on this and want to finish so I can run my W2's. 

1 Comment 1
ShiellaGraceA
QuickBooks Team

Tracking and submitting 3rd party sick pay

Thanks for reaching out to us here, @Leslie37.

 

I'll share the steps on how you can resolve your third-party sick pay withholdings. You'll want to make sure you're using the correct tax tracking type of your third-party sick pay payroll item.

 

Here's how to check:

  1. Go to Lists at the top.
  2. Select Payroll Item List.
  3. Double-click your third-party sick pay addition item. Then, hit Next two times until you reach the Tax tracking type section.
  4. Make sure to choose Compensation on the drop-down. Tick Next until Finish.

Here's how it looks like:

 

ttt.png

 

 

After that, go back and check your form again. Please refer to this guide for the step-by-step instruction, just scroll over to Scenario 2: Third-party withholds, employer submits W2: Track and submit taxable third-party sick pay.

 

If you need help with other payroll tasks, you can browse for specific topics here and look for responses that fit your concern.

 

Keep me posted if you still have questions or concerns with payroll. I'm always here to help. Take care and have a lovely day ahead.

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