Learn how to report third-party sick pay in QuickBooks Online Payroll Core, Premium, and Elite and QuickBooks Desktop Payroll Assisted.
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Third-Party Sick Pay is disability payments from an insurance company your employee gets while out of work, sick, or injured. To process third-party sick pay, you must send your info to us so we can collect any necessary taxes and report on tax forms including your employee’s W-2. To learn more about sick pay see IRS Publication 15a.
Step 1: Verify the following info on the third-party report.
This info is required by the IRS for reporting purposes. If any of the info is missing from the third-party report or Explanation of Benefits (EOB), contact the third party to obtain it.
- 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
Step 2: Contact Intuit to process the sick pay
What happens next?
Once we receive the info, you'll receive an email with what to do next. We may need to collect the company portion of taxes from you (if applicable).