jsbucklewcpa-gm a
Level 1
03-01-2022
06:10 PM
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I am a new ProConnect user, but am I missing something? With the help of 2 ProConnect support agents, I have tried every input combination we could think of. Even though the box 16 wages are 0, ProConnect still identifies the W-2 from the insurance company as taxable compensation to Pennsylvania. I have trial versions of Lacerte and ProSeries. I have the same issue in Lacerte, but in ProSeries, I had no problem with the wages not being taxed on the PA return. The PA Department of Revenue has confirmed to me this is not taxable income to PA and the guidance seems fairly clear to me - only sick payments that "represent regular wages" are taxable to PA (I assume that means they are reported on the W-2 from the employer, NOT the insurance company). The payments represent short-term disability (premiums paid 100% by employer). I actually have this same issue on this client's partner's return who received sick pay for COVID-19.
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