Tech Note: How to Handle Federal, State, and Local Tax Withholdings for Third Party Payroll Payments

There are situations where third-party organizations including health insurance companies cover the wages of employees for the duration of their sick leave and the payments are required by law to be entered or accounted for in your system to update your employee’s Federal, State, and Local withholding records.

Article # 1046: How to Handle Federal, State, and Local Tax Withholdings for an Employee Who Received Third Party Payroll Payments guides you on how to record these transactions in the AccountMate Payroll module.