Setting up Third Party Sick Payments (3PS)

Third Party Sick can be split into 2 categories: STD (short term disability) and LTD (long term disability). Companies like AFLAC and Mutual of Omaha provide this service to employees. We record these wages for ER and/or EE tax purposes.

Clients should upload the 3PS documents to the Confidential Other tab in Employee Documents (Employee Management > Human Resources > Employee Documents). If the doc is attached to the ticket, Send the MACRO “3PS Document Upload Procedure” with your reply.

What to look for: Who is responsible for the W2? Dominion Payroll or the 3rd party. If this is not obvious in the documents, reach out to the client to find out. They may have to reach out to their 3rd party provider. Use the MACRO “3PS More information needed”.

Short Term Disability (STD) with W2 Preparation

Earnings code to setup when DP is producing the W2

• If DP is producing the W2 and the benefit is taxable, then set up or check the setup of the earnings code: 3P Sick Taxable
• These earnings are not paid – the EE has already been paid by the 3rd party
• These earnings are taxable to the ER. The EE taxes have been withheld by the 3rd party
• If the code has already been set up, check the setup of the code

Entering the 3rd party amounts

• Navigate to Individual Time Entry
• Click Add New
• Check Type: 3rd Party Sick
• Check Date: Payment date from the document
• Check number: If provided
• Save

• Back at the Individual Time Entry, switch the Template to All
• Find the earning 3P Sick Taxable and enter the gross benefit amount in the dollars column
• Enter the EE SS and EE MED (Sometimes FED and state Withholding will need to be entered)
• Preview Check
• You should see both EE and ER taxes
• The 3rd Party Sick check will process with the next payroll run

 

Employee Documents

Navigate to Employee Documents

3PS documents should be saved under the “confidential other” tab Document type: HR document with the format:

• “First initial.LastName””Benefit date” entered “date”
• Example: J.Jones7/1/2022 Entered 7/30/2022

Zendesk

Use the “Audit Please” tag in Zendesk before responding and solving the ticket. Reply to the client using the “3PS Entry Complete” MACRO.

Short Term Disability (STD) without W2 Preparation

• If the 3rd party is producing the W2 and the benefit is taxable then use memo code 3pSick ER Taxes Only
  
• These earnings are not paid – the EE has already been paid by the 3rd party
• These earnings are taxable to the ER. The EE taxes have been withheld by the 3rd party
• If the code has already been set up, check the setup of the code