Third-party sick pay example
Excerpt from sample check:
| PRCode | Source | Result | AP Control | Groups | Debit Account | Credit Account |
|---|---|---|---|---|---|---|
| Pay.3rdSick | 685.71 | 685.71 | Compensation | 9999-00-00-A | ||
| Tax.3rdMedEE | 685.71 | 9.94 | 3rdPartySickPayMed, Medicare | 9999-00-00-A | ||
| Tax.3rdSocSecEE | 685.71 | 42.51 | 3rdPartySickPaySS, SocialSecurity | 9999-00-00-A | ||
| Tax.3rdUSA | 685.71 | 0.00 | 3rdPartySickPayTax, IncomeTax | 9999-00-00-A | ||
| Tax.MedER | 685.71 | 9.94 | 941 | Medicare | 5401-00-00-A | 2401-00-00-A |
| Tax.SocSecER | 685.71 | 42.51 | 941 | SocialSecurity | 5402-00-00-A | 2402-00-00-A |
| Ded.3rdSick | 633.26 | 633.26 | 9999-00-00-A |
Source and Result expressions for Ded.3rdSick
Source:
SumCheck.Result('Type=Pay AND Pay=3rdSick')
- SumCheck('3rdPartySickPayTax Amount')
- SumCheck('3rdPartySickPaySS Amount')
- SumCheck('3rdPartySickPayMed Amount')
Result:
Source
Noteworthy:
- Pay.3rdSick, Tax.3rdMedEE, and Tax.3rdSocSecEE, and perhaps Tax.3rdUSA, are input after-the-fact from the third-party claim.
- 3rdMedEE and 3rdSocSecEE have normal source expressions for wages, but a null result expression for entering the claim amount.
- Tax.3rdUSA has a normal source for taxable wages, but the result is blank or zero. This line is needed for taxable wages, even if the third-party payer did not deduct it (this is also true for state taxes).
- Employee-paid taxes in both the normal groups and the third-party groups.
- W-2 forms. Since they are in normal taxable groups, third-party totals are included in wage and withholding amounts on W-2 forms. Moreover, the third-party checkbox is marked on the W-2 if either the Third Party Sick Pay checkbox is marked on the employee record or the third-party Social Security or Medicare withholding amount is greater than zero.
- USA Tax Liability Report. Mark the Subtract Third-party Sick Pay checkbox to report your company's tax liability only. Clear the checkbox to include taxes paid by third parties.
- Form 941. Third-party sick amounts are reported on Form 941.
- There is no AP control for employee-withheld social security, Medicare, and income tax since these are paid by the third-party payer.
- Normal MedER and SocSecER are used for amounts the employer owes. These are assigned to an AP control.
- Ded.3rdSick reduces net pay to zero.
Sample Check GL Detail Report
Note the suspense account is used for 3rdMedEE, 3rdSocSecEE, 3rdUSA, and Ded.3rdSick.
| Accrual | ||||
| 9999-00-00-A | Suspense | 08/19/2023 | 685.71 | |
| 5401-00-00-A | Medicare Tax | 08/19/2023 | 9.94 | |
| 5402-00-00-A | Social Security Tax | 08/19/2023 | 42.51 | |
| 9999-00-00-A | Suspense | 08/19/2023 | 738.16 | |
| 738.16 | 738.16 | |||
| Liability | ||||
| 9999-00-00-A | Suspense | 08/19/2023 | 738.16 | |
| 9999-00-00-A | Suspense | 08/19/2023 | 685.71 | |
| 2401-00-00-A | Medicare Payable | 08/19/2023 | 9.94 | |
| 2402-00-00-A | Social Security Payable | 08/19/2023 | 42.51 | |
| 738.16 | 738.16 | |||
| Cash | ||||
| 9999-00-00-A | Suspense | 08/19/2023 | 0.00 | |
| 9999-00-00-A | Suspense | 08/19/2023 | 0.00 | |
| 0.00 | 0.00 | |||