About third-party sick pay

In some states, a third party pays for employees receiving sick pay or disability insurance. In most instances, the employer is responsible for reporting the deductions and wages. If your company is responsible for reporting the sick pay wages, you can enter payroll records using pay type 6-Third Party.

When you post a payroll record with pay type 6-Third Party, Sage 100 Contractor:

Adds the employee costs to the calculation balances stored in the employee’s record.
Adds the employer costs to the calculation balances stored in the employee’s record.
Posts the employer costs to the general ledger.

For more information about third-party sick pay, see IRS publication 15A, The Employer’s Supplemental Tax Guide.