DBnr
Level 2
03-23-2025
02:13 PM
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Thought sick pay was non-taxable? Client received W-2 with income and withholding and box 13 checked. Does that mean all of this is taxable?
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Level 10
03-23-2025
03:11 PM
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Sick pay is almost always taxable, including third party sick pay, and treated just like any other wages. I believe about the only time it would not be taxable, is if the recipient paid for the sick pay premiums himself and with after-tax dollars. Very rare!! and there is a caveat about the payments received after 6 months of regular sick pay payments.
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