Year-end guide to third-party sick pay
As a business owner or Payroll/HR professional, there's a lot to review at this time of year in order to make sure you close out your 2017 payroll and tax data without errors or corrections.
And a review of any Third-Party Sick Pay (abbreviated 3PSP) is probably (hopefully!) on your list.
Year-end deadlines are rapidly approaching - December 29 is the last day to post 2017 payroll data to meet filing deadlines. If any of your employees were issued sick pay by a third party (usually an insurance company) in 2017, take a look at these three steps to help you avoid last-minute payroll and tax adjustments:
Obtain year-end reports
You’ll need to request general information and year-end reports from your Third-Party Providers. Then, use this information to verify the 3PSP payroll postings in your payroll system (HRCheck) agree with the reports from your provider.
Enter third-party sick pay info into your payroll system (HRCheck)
It’s best practice to report 3PSP earnings as soon as they are provided to the employee. Your records will be up-to-date, and you’ll also save time at year-end.
Don't forgot about W2s
Remember all information posted with payroll will be included on employee W2s. If you are posting 3PSP with your payroll, advise your provider that CheckWriters is reporting the employer taxes and will issue the W2. Contact your provider today to ensure that they are not issuing the W2.
Take these three steps, and your year-end payroll prep will be a lot easier!
Questions about third-party sick pay reporting? Contact your customer service representative at 888-243-2555.