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Level 1
posted Jan 31, 2020 1:07:51 PM

Third-party sick pay California

I received a W2 from an insurer because I went on maternity leave last year. I followed the instructions on here but I'm confused because my W2 has the box 1 filled but also has box 12 and 13. It does not have boxes 16,17,18. What's the tax category in box 14 in TurboTax? Is this taxable in CA? In summary:

 

  • Box 1 – Wages is NOT BLANK.
  • Box 12 has Code J with an amount $700 less than Box 1.
  • Box 13 – Nontaxable sick pay is checked.
  • Box 14 - Third Party sick pay and amount from Box 1

Thank you!

0 5 4865
1 Best answer
Employee Tax Expert
Feb 6, 2020 6:36:34 PM

Paid family leave is not taxable in CA so all the state information is blank.

 

Code J in Box 12 is nontaxable sick pay.

Box 14 is other information, which in your case is just more repetition.

 

All together, you will have $700 of taxed wages and the rest will be non-taxed sick pay.

5 Replies
Employee Tax Expert
Feb 6, 2020 6:36:34 PM

Paid family leave is not taxable in CA so all the state information is blank.

 

Code J in Box 12 is nontaxable sick pay.

Box 14 is other information, which in your case is just more repetition.

 

All together, you will have $700 of taxed wages and the rest will be non-taxed sick pay.

Level 1
Mar 24, 2020 12:36:14 PM

I was on maternity leave in 2019 and received W2 from the insurance company, with box 13 third party sick pay checked, 14 as 100%, and the wages are the same for Fed as well as California.  Is this considered paid family leave and not taxable in California?  My company paid for few weeks of paid maternity leave (included in my W2), are any of these taxable (Fed and California)?

 

Thank you

Vee

Employee Tax Expert
Mar 24, 2020 12:51:06 PM

Yes.  It is taxable income, that's why it is reported on a W-2.  

Level 1
Mar 24, 2020 1:00:50 PM

thanks, but for California paid family leave is not taxable right?

Employee Tax Expert
Mar 24, 2020 2:46:16 PM

PFL wages are subject to federal income tax, but not Social Security and Medicare taxes, or federal unemployment tax.

 

PFL benefits are not taxable or reportable to the California State Franchise Tax Board.