This webinar discusses the proper taxation and reporting of the fringe benefit known as third-party sick pay.  It discusses what is and is not third-party sick pay, how the taxation is affected by the status of the provider (is or is not the employer’s agent), when this type of payment is taxable and/or reportable and who is responsible for this taxation and reporting.

Background

Third-party sick pay is a common benefit offered by many employers nationwide.  However, handling it in the payroll department can be a very difficult challenge. There are many issues that must be clarified in order to determine the taxation and reporting requirements under the Internal Revenue Code.  For example, is the insurance company being used as the employer’s agent or not the employer’s agent? Who is depositing the FICA taxes deducted from the employee’s payment and who is depositing the matching employer FICA taxes? Is the payment even subject to FICA taxes? 

In This Webinar, We Will Discuss

• What is third-party sick pay
• When is the third party, not the employer’s agent and when are they
• How does the status of the employer’s agent affect the taxation and reporting of third-party sick pay
• When is third-party sick pay taxable for income tax
• When is third-party sick pay taxable for FICA and FUTA
• When is third-party sick pay non-taxable
• Who reports the payments for third-party sick pay for such forms as the 941 and W-2
• The latest on the new IRS Third Party Sick Pay form
• What happens to the taxation if the employee pays a portion of the premium