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Saphire605
January 24, 2019
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Form W-3 Box 13 & 14 Third Party Sick Pay

  • January 24, 2019
  • 1 reply
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We have an employee that received Third Party Sick Pay in 2018.

They had the following taxes withheld by the Third Party Company:  FICA, Medicare and FIT (Federal Income Tax).  

 

It is my understanding that on the W-3 box 13 we are to put the Taxable amount paid the the Third Party company.   

 

However in Box 14, are we to report the FIT tax only or the amount of all the taxes withheld by the Third Party Company?

    Best answer by HoneyLynn_G

    Hello there, @Saphire605.

     

    I'm glad to see your post here in the Community. I can share some information about the Form W-3.

     

    The Box 14 is for the income tax withheld by payer of third-party sick pay.  You have to complete this box only if you are the employer and have employees who had federal income tax withheld on third-party payments of sick pay.

     

    You'll only have to report the FIT and not the total amount withheld by the third-party company.

     

    For more details, please refer to this file: General Instructions for Forms W-2 and W-3.

     

    That should do it, Saphire605. I'm still here to help you more if you have other payroll questions. Just add a comment below or tag my name. Have a wonderful day ahead!

    1 reply

    HoneyLynn_G
    HoneyLynn_GAnswer
    January 24, 2019

    Hello there, @Saphire605.

     

    I'm glad to see your post here in the Community. I can share some information about the Form W-3.

     

    The Box 14 is for the income tax withheld by payer of third-party sick pay.  You have to complete this box only if you are the employer and have employees who had federal income tax withheld on third-party payments of sick pay.

     

    You'll only have to report the FIT and not the total amount withheld by the third-party company.

     

    For more details, please refer to this file: General Instructions for Forms W-2 and W-3.

     

    That should do it, Saphire605. I'm still here to help you more if you have other payroll questions. Just add a comment below or tag my name. Have a wonderful day ahead!

      P
      PT2020
      January 23, 2020

      I had 2 employees who received non-taxable disability pay in 2019.  (Because they paid the premiums with after tax dollars, the income received is non-taxable.)

       

      I was sent a third party report from the disability company, saying these amounts need to be reported on the employees' W-2 with a J code.  In preparing the W-2s, however, Quickbooks does not ask whether the amounts are taxable, and adds the disability amount to the total wages.  Since we did not pay the disability amount, we did not take out FICA taxes on the disability.  QB will not let me proceed with the W-2s, saying there is an error, that the social security tax withheld is too low with regard to the total wages (which included the non-taxable disability.) 

       

      How do I proceed?

       

      Thank you!

      M
      mv32
      January 23, 2020

      Thanks for posting in the Community, @PT2020.
       

      To report these amounts in W-2, you can set up non-taxable third-party sick pay on a payroll check to include it in Box 13. Box 13 is checked only if you are "Third Party Payer", or you are reporting amounts paid by a third party for sick pay.


      You can refer to this article in setting up accurately to properly report these payments on W-2: Report third-party sick pay to QuickBooks Online Payroll and QuickBooks Desktop Payroll Assisted.

      Here's a your guide on how to populate the boxes in W-2: How to Understand and Fill Out a W2.

      I'm always free for your Reply if you need more help. I'll be happy to guide you. Have a good one!

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