Welcome back! Ask questions, get answers, and join our large community of tax professionals.
  • Sign In
  • Elevate 2026 Pencil Banner
    cancel
    Showing results for 
    Search instead for 
    Did you mean: 

    Sick Pay

    DBnr
    Level 2

    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?

    0 Cheers
    1 Best Answer

    Accepted Solutions
    dd4vols
    Level 11
    Level 11

    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.

    If an answer solves your issue, click on the "Mark as Best Answer" button! Makes it easier for people to find answers to similar questions that have already been posted.

    View solution in original post

    1 Comment 1
    dd4vols
    Level 11
    Level 11

    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.

    If an answer solves your issue, click on the "Mark as Best Answer" button! Makes it easier for people to find answers to similar questions that have already been posted.