"The use of this seal is not an endorsement by the HR Certification Institute of the quality of the program. It means that this program has met the HR Certification Institute's criteria to be pre-approved for recertification credit."

"This program, has been approved for 1.50 (HR (General)) recertification credit hours toward PHR, SPHR and GPHR recertification through the HR Certification Institute. Please be sure to note the program ID number on your recertification application form. For more information about certification or recertification, please visit the HR Certification Institute website at www.hrci.org."

Overview: In this webinar we cover all of the basic rules and regulations for taxing and reporting third party sick pay. We will discuss the definitions of the terms employer, employer's agent and not the employer's agent. These terms actually determine how the wages paid are taxed and reported. We will cover when to withhold social security and Medicare and when the wages are exempt from these taxes. We will examine when federal income tax withholding is required and when it is optional based on the employee's request. We will review how the liability for the employer portion of the FICA taxes can be transferred back to the employer and how this affects the depositing and reporting of the wages on the Form 941. The regulations for who is responsible for the filing of Form 941, Form W-2 and the Form 940 will be covered

Why should you attend: The rules and regulations for taxing and reporting third party sick pay have been difficult and challenging since the inception of the benefit and have not gotten easier over time. In fact, it is currently one of the more difficult and time consuming tasks that payroll must undertake when offering fringe benefits. Questions constantly arise as each employee is paid wages under the program. Do I deduct social security and Medicare tax on all payments or not? Which payments are not subject to federal income tax withholding? And that is just the beginning.

Once the taxability of the wages has been determined now comes the tougher decisions-who deposits which taxes? If the Third party is your agent are they transferring all liability back to you or only the employer portion of FICA taxes? If the third party is not the employer's agent have they transferred by any tax liability?

And finally who reports the wages and the taxes on the Form 941 and Form W-2? Does the employer, the employer's agent or not the employer's agent have the responsibility for the reporting? Or could it be both must report?

Answering or handling each or any of these questions incorrectly could result in improperly withholding, depositing or reporting wages or tax deposits. And we all know what that means-you leave the company open for IRS audits and possible fines and penalties.

Areas Covered in the Session:

• What is third party sick pay
• When is the third party not the employer's agent and when are they
• How does the status of the employer's agent affect the taxation and reporting of third party sick pay
• When is third party sick pay taxable for income tax
• When is third party sick pay taxable for FICA and FUTA
• When is third party sick pay nontaxable
• Who reports the payments for third party sick pay for such forms as the 941 and W-2
• What happens to the taxation if the employee pays a portion of the premium

Who Will Benefit:

• Payroll Professionals
• Human Resources
• Accounting Personnel
• Business Owners
• Lawmakers
• Attorneys, or any individual or entity that must deal with the complexities and technicalities of ensuring compliance within the payroll process