Third party sick pay in W-2 Box 12 Code J
According to Publication 15-A, Employer's Supplemental Tax Guide, third party sick pay wages should only be reported in Box 12 of the W-2, not in Box 1. If the W-2 was completed incorrectly, you'll need to issue a corrected Form W-2 to the taxpayer.
The third party sick pay you enter in the
Box 12 / Code J
field in the W2
screen in the Income folder aren't reported on the return.Use the
Third-party sick pay
checkbox on the W2
screen only in these cases:- you're a third-party sick pay payer filing a Form W-2 for an insured's employee
- you're an employer reporting sick pay payments made by a third party
