Reporting Third-Party  Sick Pay on W-2 and W-3 Statements

1. Select Additional Income on the Command Center window.
2. Select New. Enter a description of the income such as “Sick Pay”. You are limited to 12 characters. Set the Calculation Method as Variable. Close Additional Income window.
3. Select Employees on the Command Center window.
4. Select an employee from the list on the right and then select the Taxes tab at the top.
5. Mark check box for the W-2 box 13 Sick Pay.
6. Select Income tab. Under Company Categories select “Sick Pay” then Assign and Save.
7. Reselect the same employee from the list and the YTD tab. In the box labeled “Sick Pay” modify the amount from 0.00 to gross wages paid by third-party payer. Also, modify Social Security and Medicare amounts to amount shown plus the amount withheld by third-party payer. If necessary, enter the amount of federal withholding withheld on sick pay in the box labeled “3rd Party Federal W/H”. Save.
8. Repeat steps 3-7 for all employees paid sick pay by a third-party payer.
9. Select W-2/W-3 Statements on the Command Center window.
10. Print W-2’s and W-3 statements. For more information on printing W-2s and W-3s see “Creating W-2 and W-3 Reports.”

Creating Electronically Filed Reports

You can save a file from CheckMark Payroll that you can use to submit W-2 information to the SSA electronically in the EFW2 format. For more information on submitting W-2 information electronically, see the Social Security Administration (SSA) publication about Electronic Filing (EFW2) online at http://www.ssa.gov/employer.

CheckMark Payroll also allows you to save State information for filing electronically. For a list of available states, click the pull-down list next to the EFW2 File button.