Let’s Start Getting Ready for Year End–Beginning with Third-Party Sick Pay

It’s hard to believe it is already fall.   There is a fall feel in the air in some places–still hot where I am.  But it is definitely cooling down which means Halloween will soon be upon us, followed by Thanksgiving etc.  But to us payroll professionals fall also means time to start thinking and planning for year end.  Time to start getting all our ducks in a row for processing the Forms W-2 for 2014.  So as items come across my desk that deal with year end I will post them here for you.  This time I want to discuss the Form W-2 reporting changes for third-party sick pay.  Effective January 2015, the Social Security Administration (SSA) will no longer process the “Third-Party Sick Pay Recap” or what we used to call the “dummy W-2”.  This recap is required in order to reconcile Forms W-2 with the Forms 941 for the calendar year when insurance companies or plan administrators share employment tax responsibilities with the employer for disability payments. Under the new procedures, applicable insurance companies, administrators and employers will be required to file Form 8922, Third-Party Sick Pay Recap with the IRS by February 28th or March 31st if filing electronically.  The Form 8922 is actually still in draft form on the IRS website but they hope to have the form finalized by December.

 

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