If you recently received a Disability Benefits Statement requiring you to add a third-party sick pay payment for one of your employees, you'll need to create a special manual check.
Your first step will be setting up an earning code. Here's how to do so:
- Go to the “Setup” tab. From the menu on the left, select “Payroll.”
- Go to "Earning Codes" and then click on "Add."
- Name the "Code, “Short Description," and "Description.”
- The Disability Benefits Report mailed to you will disclose whether the amount you owe is Taxable or Non-taxable. From the drop-down menu by "Earning Type," you can select 3rd Party Sick Pay Taxable or Non-taxable.
Note: We do recommend to create both earning codes in case needed in the future
- Then by "Calculation Rule," select "HoursxRatexFactor" and click "Save."
You should see the earning code you created!
Now we are going to create the manual check itself.
- Go to the "Payroll" tab and click on "Manual Checks."
- Click on the "+Add" button in the top right corner to select an employee. Be sure to check off "3rd Party Sick Pay" within the Employee Selection Window and click "Continue."
- Now, click into space under "Amount" to enter a dollar amount.
- If the amount is Taxable after you enter the amount click into "Taxes" to enter the tax amount as it is stated on the statement you received. Then click "Save." If the amount is Non-taxable, just click Save.
Now you will see the manual check.
Example of a Non-Taxable Check.
Example of a Taxable Check.
So when you receive a disability payment notice, you can quickly square away the payment using Fingercheck360!
To learn more about our cost-effective and user-friendly cloud-based time and attendance software, check out our website at Fingercheck.com. Interested in our services? Sign up for a 30-day free trial and get started with Fingercheck today.