Third party sick pay on 941x

Hello, mreller.

It's my pleasure to assist you with this so that you can finish the correction.

You can use QuickBooks to track third-party sick pay. If you want to correct the employee's portion that was paid by the third party, you can make a company liability adjustment.

Here's how:

1. Go to the Employees, and choose Payroll Taxes and Liabilities.
2. Select Adjust Payroll Liabilities to open the Liability Adjustment window.
3. Set both Date and Effective Date fields to the last date of the quarter.
4. In the Payroll Items field, choose Social Security Company and enter a positive amount of the company portion of the third-party sick pay.
5. On the next line in the Payroll Items field, click Medicare Company and enter a positive amount of the company portion of the third-party sick pay.
6. Follow Step 5 for Federal Unemployment and State Unemployment.
7. Hit OK to save the company adjustment.

For your reference, you can visit this article for more details: Track and submit taxable third-party sick pay.

Please see this resource to see how figures populate on 941 boxes if you use QuickBooks to prepare and file Form 941-X: How QuickBooks populates Form 941.

Since it was done manually, I recommend that you contact the IRS or your accountant to find out where the employee's portion is deducted.

If you require anything else, please keep posting here. Have a fantastic day!