3197987
Received third part sick pay for short term disability. Box 15 has NY and ID number but boxes 16 and 17 are blank. Payment made by third party insurance company. Is this payment not taxable in NY? Premiums paid fully by employer.
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In general, if you paid for the cost of your policy, your third party sick pay is not taxable. If your employer paid for the cost of your policy, your third party sick pay is taxable. This is the same for short-term disability in New York. It is generally taxable if your employer pays the premiums.
It is usually reported in Box 12. If you have a "J" in Box 12, it is not taxable.
You should check with your employer to make sure your Form W-2 is correct. Your taxable wages may all be reported in Box 1.
Click here for "Is Third Party Sick Pay Taxable?"
Thank you -- Box 1 looks to be correct for federal wages however the insurance company which paid out the short term disability left the state wages blank. Should I just enter the amount from box 1 in the state wages box in this case? The w-2 is from a third party company that has been a pain to deal with in the past
Yes. Since your third party sick pay is taxable in NY as well, enter the amount from box 1 in box 16.
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