Find answers to frequently asked questions about third-party sick pay.
IRS Publication 15a states: “Sick pay generally means any amount paid under a plan because of an employee's temporary absence from work due to injury, sickness, or disability. It may be paid by either the employer or a third party, such as an insurance company. Sick pay includes both short- and long-term benefits. It is often expressed as a percentage of the employee's regular wages.”
In this article we answer frequently asked questions about third-party sick pay.