Mandated Sick Pay and Third Party Sick Pay: Taxation, Reporting & Compliance Essentials

Overview:

In today’s workplace, the expectations around employee leave have changed. Paid sick time is no longer viewed as a discretionary benefit—it’s increasingly being defined and enforced by legislation. Over the past few years, various jurisdictions have introduced mandatory sick pay requirements that employers must follow. These rules outline how much sick time employees should accrue, how it should be tracked, and under what conditions it can be used.

For professionals handling payroll or HR compliance, this adds another layer of complexity to an already demanding role. The challenge isn’t just understanding what the law says—it’s making sure your internal processes, third-party vendors, and reporting systems all align with those legal expectations. Missteps aren’t always due to negligence; they often happen when roles and responsibilities aren’t clearly defined, especially when third-party sick pay is involved.

It’s common, for instance, to assume that once a third-party provider begins paying out disability benefits or handling sick pay, they also take on full responsibility for tax withholding and reporting. But in many cases, the employer still holds part of the burden—particularly when it comes to accurate year-end reporting and ensuring proper coordination across systems.

In this session, we’ll break down the core components of mandated sick pay requirements, with a special focus on how third-party sick pay should be handled from a compliance and tax perspective. You’ll gain clarity on what steps need to happen internally, what you should expect from external providers, and where common errors tend to occur.

Whether you’re managing multi-state payrolls or overseeing compliance at a single location, this webinar will offer straightforward, actionable guidance to help you stay compliant, avoid reporting errors, and confidently navigate the intersection of sick leave policies and third-party disability benefits.

Areas covered in the session:

• Review different types of ways companies can choose to handle third party sick pay with their providers.
• State and City review of current legislation of sick accruals that must be provided to employees.
• W-2 reporting requirements for third party sick pay.
• What tax should be withheld and reported and by whom?
• How to handle waiting periods before disability starts
• State Disability plan review from tax that funds them to how the claims affect employers.

Why Should You Attend?

If you’ve ever second-guessed whether your organization is handling sick pay correctly—or found yourself untangling year-end reporting issues tied to third-party providers—this webinar is for you.

You’ll gain clarity on how mandated sick pay laws apply in real-world scenarios, what your responsibilities are as an employer, and how to avoid the common pitfalls that lead to compliance headaches. Whether you're managing payroll, overseeing HR policies, or coordinating with disability insurance providers, this session will equip you with practical guidance you can apply immediately.

Instead of navigating gray areas or relying on assumptions, you’ll walk away with a clear understanding of how to stay compliant, minimize risk, and streamline your sick pay and third-party pay processes with confidence.

Who Will Benefit?

This webinar is ideal for professionals responsible for payroll compliance, employee leave administration, and year-end reporting. Those include:

• Payroll Managers and Specialists
• HR Managers and HR Generalists
• Benefits Administrators
• Compensation and Compliance Officers
• Controllers and Finance Managers
• Third-Party Administrators
• Tax and Accounting Professionals
• Operations Managers involved in workforce compliance
• Business Owners managing internal payroll