W3 and third party sick pay

I'd like to explain about third party sick pay, TME1104.

This is a payment that your employee receives from a third-party, aside from the employer. How you record it depends on who will submit the tax payments for employee paid taxes and who will file the tax form.

Box 1 is for wages, tips, and other compensation. The program adds the total from the W-2 forms included in the interview. While in Box 13, you'll have to enter the information. To verify if you can add the amount of the pay in both boxes, please refer to the General Instructions for Forms W-2 and W-3. 

I'll also share some articles about W-3 and third party sick pay for better guidance:

• Track and submit taxable third-party sick pay
• QuickBooks Desktop behavior: W-3

If you have other questions, please don't hesitate to get back to this thread. 

I have read that tax form and many others for that matter.  I cannot find where it states the answer to my question anywhere.  I have also read the threads you have suggested.  Hence, my question on here.

Hey there, @TME1104. 

Allow me to chime in about your W-3 forms.

According to the track and submit taxable third party sick pay article, the amount should already be included in the W-3 if you've followed all the correct steps. Meaning the W-3 form should reflect your taxes correctly. If you don't see this, I recommend reaching out to your accountant for further assistance.

Thanks for being part of the QuickBooks family, wishing you a successful business week!

I am trying to enter the 3rd party sick pay to amend a W-2 already submitted and as per your instructions on Creating an Additional PR item, there isn't a dropdown for Payroll Item List. Also when creating a deduction item I don't see Payroll Item List on the dropdown.

Thanks for joining us here in the Community, @AG20.

If you have the No Payroll set up on your preferences, this can be the reason the Payroll Item List option isn't available. Let's make sure to select the Full Payroll to make the functionality visible.

To do that:

1. Click on Edit at the top.
2. Hit on Preferences. 
3. Choose Payroll & Employees.
4. Press on Company Preferences.
5. Select Full Payroll and click on OK. 

Once done, creating a new payroll item in QuickBooks Desktop can be made from the clicking on the List button at the top, and selecting the Payroll Item List option.

Please take these steps below to achieve this goal:

1. Go to the Lists menu, then select Payroll Item List.
2. At the lower left of the Payroll Item List, click the Payroll Item button.
3. Hit on New. 
4. Select Custom Setup, and then press on Next. 
5. Supply the information needed on the setup until you reach the Finish button.

To give you complete details about entering the 3rd party sick pay in QuickBooks Desktop, please check out this link: Track and submit taxable third-party sick pay.

However, if you the option to select the payroll item list isn't available, I recommend updating your QuickBooks to the latest release. This refresh all the updates made on your data. 

Here's how:

1. Go to the Help menu and select Update QuickBooks.
2. Refer to the Update Now tab. 
3. Hit the Get Updates to start the download.
4. When the download finishes, restart QuickBooks.

For more details about updating QuickBooks desktop, please refer to this link: Update QuickBooks Desktop to the latest release

I got your back if you have any other questions. It's my pleasure to help you out. Have a good one!