I retired and received a payment for unused sick days. My employer reported the gross amount on W2 Box 11 Non-Qualified. Is that correct?
FIT, FICA, and NJ SIT were withheld.
Yes, it is correct. Enter the W-2 as it appears. FIT, FICA, and NJ SIT should be withheld and the amount (unused sick pay) should be included in Box 1.
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