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?

[zalewczuk]

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.

[DawnC0 · Accepted solution]

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.