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Administrator Guide
Last Updated: 2023-06-23
Set Up W-2 Provider for Third-Party Sick Pay (USA)

Set Up W-2 Provider for Third-Party Sick Pay (USA)

Security:
Set Up: Payroll - Company Specific (Taxes) - USA
 domain in USA Payroll functional area.
You can set up whether you or the third party provides the W-2s for sick pay. You can enable Workday to display third-party sick pay on payslips, W-2s, and tax filing.
When you process W-2s, Workday produces reports according to this setting. When a third party provides W-2s, Workday creates a
Third Party Sick Pay Recap
 report.
  1. Access the
    Edit Company Federal US Tax Reporting
     task.
  2. Select the
    Third Party Provides W-2 for Sick Pay
     check box if you aren't providing the W-2s.
    You can configure multiple start dates for company federal tax reporting, but make sure to carry over any features you want to keep. Example: You select
    Third Party Provides W-2 for Sick Pay
     to start on 2022-01-01. You later want to set up
    Exempt from FUI
     to start on 2022-07-01. When you add the second setting, check
    Third Party Provides W-2 for Sick Pay
     again. Otherwise, this choice reverts to the default, where you provide the W-2 for sick pay.
  3. (Optional) Enter the details for these fields, which are required for Form 8922:
    • Third Party Insurer/Agent Name
    • Third Party Tax ID
Create a third-party sick pay earning.