Set up an employee's W-2 Form with third party sick pay. Third party sick pay is a disability insurance benefit that provides employees with partial or full wage benefit payments while on long-term medical leave. The payments are not made through the employer, but through an insurance company, union plan, or state temporary disability plan.
You can use the W-2 Form options in the employee's record to report the third party sick pay on the employee's W-2 Form.
1. Open Connect Payroll > Employees > Modify Existing Employees.
2. Use the field titled Employee to enter the employee name or number. Press Enter.
3. Click to select the Job tab.
4. Click to select the Job subtab.
5. Find the section titled Include on W-2 Form.
6. Click to select the checkbox titled Third Party Sick Pay.
Payroll reports the employee as an employee who has received sick pay from a third party on the employee's W-2 Form.
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