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Enter payroll checks

Third-party sick pay data entry and reporting

Use these steps to manage third-party sick pay (checks for sick pay that are provided by insurance companies or other third parties) using Accounting CS.

Enter payroll checks as third-party sick pay

Use the following steps to enter historical payroll data for an employee who received third-party sick pay (TPSP).
note
Deposits for the employer portion of the Social Security taxes, Medicare taxes, and the FUTA tax need to be made using the employer's name and EIN.
  1. Select
    Actions
    , then
    Enter Transactions
    .
  2. Enter the payroll checks for each employee, either separately or as monthly, quarterly, or annual totals.
    note
    You can use each employee's regular payroll item - you don't need to set up a special item for third-party sick pay.
  3. Mark the
    Handwritten
     checkbox to indicate that the check has already been printed.
  4. Select
    Enter
     to save the check.
  5. Select
    Generate Liabilities for Handwritten Payroll checks
    .
  6. In the
    Generate Liabilities
     window, use the
    Filter
     field to update the Checks grid to only show the handwritten payroll checks that meet the filter criteria and that don't have liabilities generated already.
    note
    • You can't generate liabilities for checks when the
      Do not create tax liabilities
       option is turned on for the client (on the Payroll Taxes tab of the Clients screen).
    • If the employee type is Independent Contractor, the check won't be associated with any employer taxes, so no liabilities will be generated.
  7. In the
    Select the check type
     field, select
    3rd Party Sick Pay
    .
  8. Mark the checkboxes for the checks to generate liabilities as third-party sick pay for.
  9. Select
    Generate
    .
note
The liabilities generated for the checks will be open for all employer taxes (ERFICA-SS, ERFICA-MED, FUTA, and in some instances, SUI and Local). No liabilities will be generated for employee taxes (including FICA-SS and FICA-MED).
Using these steps, third-party sick pay checks won't affect the bank account balance nor will they be included in the bank reconciliation.

Payroll tax forms

  • Form 941: The application automatically excludes the federal withholding from line 3 and places the employee FICA amounts in line 8, current quarter's adjustment for sick pay.
  • Form 944: The application automatically excludes the federal withholding from line 2 and places the employee FICA amounts in line 6, current year's adjustment for sick pay.
  • W-2: The application marks the Third-Party Sick Pay checkbox in Box 13.
    note
    If you need amounts reported in other boxes, you'll need to manually override the W-2 on the
    Edit Payroll Tax Forms
     screen.
  • W-3: The application enters the federal withholding amount in W-3 Box 14, Income tax withheld by payer of third-party sick pay.
  • Form 940, 943, and state unemployment forms: The application treats third-party sick pay the same as any other pay.

Exclude TPSP from reports

When printing payroll reports, you can choose to exclude TPSP information by adding a filter.
  1. Select
    File
    , then
    Print Reports
    .
  2. Select the payroll report.
  3. In the Filtering and Sorting section, go to the Payroll tab.
  4. In the
    Filter by
     field, select
    Status
    . In the
    Method
     field, select
    is not
    . In the
    Selected
     field, select
    Third Party Sick Pay
    .

This article applies to:

  • Product: Accounting CS
  • Subject: Payroll checks

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