Third-party sick pay data entry and reporting

Enter payroll checks as third-party sick pay

Select
Actions
, then
Enter Transactions
.
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.
Mark the
Handwritten
checkbox to indicate that the check has already been printed.
Select
Enter
to save the check.
Select
Generate Liabilities for Handwritten Payroll checks
.
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.
In the
Select the check type
field, select
3rd Party Sick Pay
.
Mark the checkboxes for the checks to generate liabilities as third-party sick pay for.
Select
Generate
.

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

Select
File
, then
Print Reports
.
Select the payroll report.
In the Filtering and Sorting section, go to the Payroll tab.
In the
Filter by
field, select
Status
. In the
Method
field, select
is not
. In the
Selected
field, select
Third Party Sick Pay
.