Please see this answer from @LinaJ2018
If you paid for the policy: Your third-party sick pay is not taxable.
- You might still receive a W-2, but you do not need to report the W-2 as long as all of the following apply:
- Box 1 – Wages – is $0 or blank
- Box 12 has Code J
- Box 13 – Nontaxable sick pay: This box is checked.
