Identifying non-taxable third-party sick pay

Use this procedure to manually enter an employee's non-taxable third-party sick pay for W-2 reporting purposes. This pay amount appear in Box 13 of your W-2 forms. Only use this procedure if you are not tracking non-taxable third-party sick pay using pay codes and pay classes. For more information, see the Payroll Year End Procedures Manual.

To enter non-taxable third-party sick pay

  1. Access Employee (HR11).
  2. Select the Year End tab.
  3. Enter the amount of Non-Taxable Sick Pay the employee accrued for.
    Caution: 
    If you select a third-party sick pay class on W-2 Parameters (PR27.1), Payroll overrides any information you enter manually on Employee (HR11).

Options for automatically entering non-taxable third-party sick pay for employees

The following options are available for automatically entering non-taxable third-party sick pay amount in Box 13 of your W-2 forms.

Note: This procedure is automatic only if you have tracked this information for the entire year using a pay code
To Use
Automatically report non-taxable third-party sick pays W-2 Parameters (PR27.1)
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