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August 28, 2022
Question

How do I put disability payments into W2 when employee hasn't work prior to receiving disability?

  • August 28, 2022
  • 1 reply
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I spoke with quickbooks and they said I can't because hadn't received a paycheck for a few weeks prior to getting disability, obviously he was in the hospital.  He starting getting short term disability about 3-4 weeks after his last check, and I need these payments to show on his W2 so how do I do that if I can't add him back into payroll?

1 reply

MJoy_D
August 28, 2022

I can share some information about disability retirement payments in QuickBooks Online (QBO), @carlsonang.

 

This Short Term Disability is subject to federal withholding, social security, Medicare, and federal unemployment. State unemployment and state withholding taxability vary by state.

 

At this time, the option to enter this disability payment to QBO is currently unavailable. You can ask your accountant for help on how to process the W-2 outside of QBO.

 

For more information about short-term disability and system limitations in QBO, check out this article: Third-party sick pay.

 

To guide you on how to report health insurance you offer or reimburse to your employees on their W-2s, see this article: Report employer health insurance on W-2s.

 

Let me know in the Reply section below if you have follow-up questions about your disability payments. I'm always here to answer them for you. Have a wonderful day!