Third-Party Sick Pay is pay that an employee receives from a third party, other than their employer, for sick time (for example, disability insurance). This information must be forwarded to Assisted payroll service so that the employee's W-2 and other tax forms reflect the third-party payments.

This article explains how Assisted Payroll customers report third-party sick pay.

Expected Outcome

The Third-Party Sick Pay will be reported.


You subscribe to Assisted Payroll service and have received third-party sick pay information for an employee.


Assisted Payroll service cannot directly process the third-party sick pay (short term and long term disability) information through QuickBooks. To report third-party sick pay, verify the following information on the third-party report and fax it to 775.424.8972 or email it to RNAmendment_Team@intuit.com. The information will be reported via amended tax filings after the close of the applicable quarter.

Note: Using any other fax number will delay Intuit's response time.


  • Employee's name
  • Employee's Social Security Number
  • Sick pay paid to the employee
  • Federal income tax withheld
  • Employee Social Security tax withheld
  • Employee Medicare tax withheld
  • State tax withheld
  • Federal Employer Identification Number (EIN) number

This information is required by the IRS for reporting. If any of the information is missing from the third-party report, contact the third party to obtain it.


Once the information is received you will receive additional e-mail correspondence outlining next steps and expected actions which may include notification that your Assisted Payroll bank account will be debited for the company portions of taxes (Social Security and Medicare and any state taxes) if applicable. There is no charge for the amended tax forms or W-2c if applicable due to the real time reporting limitation within Assisted Payroll.

If an additional tax debit occurs, you may need to reconcile the bank account in QuickBooks Desktop.  To do this, you must use the Write Check feature:

  1. Choose Banking > Write Checks.
  2. In the Pay to the Order line, select QuickBooks Payroll Service.
  3. The Date of the check should be the date the bank account was debited.
  4. On the Memo line, enter Third-Party Sick Pay for Period MM/DD/YYYY (as indicated in the cover letter in the Amendment paperwork you received).
  5. Click the Expense tab.
  6. Click Recalculate.
  7. Click Save and Close.
  8. Repeat above Steps 1 through 8 if more than one debit occurred. (Specifically, different debits for Federal or State taxes by QuickBooks Assisted Payroll service.)