What is Third-Party Sick Pay Reporting?
Third-Party Sick Pay Reporting pertains to the reporting of payments made by a third party, like an insurance company or an employer's disability plan, to an employee who cannot work because of sickness or injury. Since disability benefits are paid directly to employees, American Fidelity is considered a third-party payer of sick pay. Because of Internal Revenue Code (IRC) regulations, employers must report benefits paid to employees by third parties on Form W-2 and other payroll forms. To help you fulfill this requirement, we provide Third-Party Sick Pay Reports.
The Third-Party Sick Pay Reports include all the information you need to report the disability benefits paid to your employees.