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Report third-party sick pay to QuickBooks Online Payroll and QuickBooks Desktop Payroll Assisted

SOLVEDby QuickBooks32Updated 1 month ago

Learn how to report third-party sick pay in QuickBooks Online Payroll Core, Premium, and Elite and QuickBooks Desktop Payroll Assisted.

Note: Not sure which payroll service you have? Here's how to find your payroll service.

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

Contact us to process your third-party sick pay.

Email the third-party report to Intuit at customer_resolutionteam@intuit.com.

Email the third-party report to Intuit at RNAmendment_Team@intuit.com.

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).

  1. Go to Banking then select Write Checks.
  2. In the Pay to the Order line, select QuickBooks Payroll Service.
  3. The Date of the check should be the date the bank account was debited.
  4. On the Memo line, enter Third-Party Sick Pay for Period MM/DD/YYYY (as indicated in the cover letter in the Amendment paperwork you received).
  5. Select the Expense tab.
  6. Depending on your payroll accounting setup:
    1. In the Account section, select Payroll Expense (or the appropriate expense account for the taxes being debited; this might be Payroll Expenses, Federal Tax Expenses, etc.)
    2. In the Amount section, enter the amount for taxes or total debit amount.
    3. In the Memo section, enter Third-Party Sick Pay.
    4. If you enter the amounts individually for Social Security Company, Medicare Company, Federal Unemployment Tax, State Unemployment Insurance, etc., you must repeat steps a, b and c for each item.
  7. Select Recalculate.
  8. Select Save and Close.
  9. Repeat Steps 1 through 8 if more than one debit has occurred. (Specifically, different debits for Federal or State taxes by QuickBooks Assisted Payroll service.)

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