Enter the amount of non-taxable in the third party sick pay field on the federal record.
Info This will cause the amount to print in box 12 with code 'J'.
- 1. Increase the total and taxable gross amounts on the following deductions by the taxable amount of the benefit received by the employee
- 2. On the medicare record, increase the total medicare tax by any amounts the company withheld from the benefit
- If the district wants the corresponding board amount for this payment to show on the BRDDIS for the month
- Enter a board error adjustment equal to the employee share withheld by the third party in the medicare record
- If the district does not want the corresponding board amount for this payment to show on the BRDDIS
- The amount can be included as a payment due on the 941 for that tax year
- 3. Contact any city involved for the employee, ask if the amount is city taxable
- If yes
- Increase the total and taxable gross amounts on the corresponding city records
- If desired, calculate the tax amount due on the payment and enter that figure as an error adjustment for a remaining payroll; otherwise the employee will have to pay the tax later
- If yes