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Level 3
March 23, 2025
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Sick Pay

  • March 23, 2025
  • 1 reply
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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?

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Best answer by dd4vols

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.

1 reply

dd4vols
dd4volsIntuit Community ChampionAnswer
Intuit Community Champion
March 23, 2025

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.

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