Third Party Sick Pay
- Former user (Deleted)
- Stephanie Schmucker
- Sara Glore
If Non-Taxable
Go to Core/Adjustments, click Create
Enter the employee name or ID
Choose the payroll item from the drop down -Federal Tax 001
Choose the type = Third Party Pay
Enter a transaction date within the current posting period
Enter in the amount of the non taxable third party pay
A description can be added (optional)
Click Save
This will cause the amount to print in box 12 with code J.
If Taxable
Go to Core/Adjustments, click Create
Employee = Locate the employee by name or id
Payroll Item = Federal Tax, Ohio State Tax, and OSDI (if applicable)
Type = Total Gross
Transaction Date = Enter a date within the current posting period
Amount = Enter the amount of third party payment
Description = Can be added if desired
Click Save
Go to Core/Adjustments, click Create
Employee = Locate the employee by name or id
Payroll Item = Federal Tax, Ohio State Tax, and OSDI (if applicable)
Type = Applicable Gross
Transaction Date = Enter a date within the current posting period
Amount = Enter the amount of third party payment
Description = Can be added if desired
Click Save
On the Medicare record, increase the total Medicare tax by any amounts the company withheld from the benefit.
Go to Core/Adjustments, click Create
Employee = Locate the employee by name or id
Payroll Item = Medicare
Type = Amount Withheld
Transaction Date = Enter a date within the current posting period
Amount = Enter the Medicare amount withheld
Description = Can be added if desired
Click Save
The district will need to pay any board amount that is due for it to show properly on the W2.
Go to Core/Adjustments, click Create
Employee = Locate the employee by name or id
Payroll Item = Medicare
Type = Board's Amount of payroll item
Transaction Date = Enter a date within the current posting period
Amount = Enter the Medicare amount withheld
Description = Can be added if desired
Click SaveÂ
Contact any city involved for the employee, ask if the amount is city taxable.
If yes, increase the total and applicable gross amounts on the corresponding city record as follows:
Go to Core>Adjustments, click Create
Employee - Find employee by typing in a few characters of first or last name
Payroll Item - Choose City Tax Code XXX
Type - Total Gross
Transaction Date - Enter or choose date from calendar
Amount - Enter in the amount to increase the total gross by
Description - Enter in a description (optional)
Click 'Save'
Go to Core>Adjustments, click Create
Employee - Find employee by typing in a few characters of first or last name
Payroll Item - Choose City Tax Code XXX
Type - Applicable Gross
Transaction Date - Enter or choose date from calendar
Amount - Enter in the amount to increase the applicable gross by
Description - Enter in a description (optional)
Click 'Save'
If desired, calculate the tax amount due on the payment and enter that figure as an error adjustment on the City Payroll Item for a remaining payroll; otherwise the employee will have to pay the tax later.
There is a special field on the 941 for adjustments needed due to Third Party sick payments and how they relate to Medicare withholdings. The district should reference the 941 instructions as well as the information in IRS Publication 15-A on these payments as needed.
Â