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IRS updates short-term disability tax filing procedures

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The Internal Revenue Service (IRS) is changing the rules employers and their plan administrators need to use for reporting short-term disability (STD) insurance benefits payments.

Affected filers will have to file “third-party sick pay recap” information using IRS Form 8922.

The filers have been sending the information to the Social Security Administration (SSA) on Form W-2 and Form W-3.

The new requirement will affect STD payments made in 2014 and in later years, officials say in IRS Notice 2015-6.

The new procedure only affects where filers send the STD benefits payment information summaries, officials say. The procedure does not affect other W-2 and W-3 filing requirements, employer quarterly and annual tax return filing requirements, or requirements for giving STD benefits payment information to individual employees on the employees’ own W-2 forms.

See also: Is the Form 5500 worthless?

The change also has no effect on federal employment taxes, officials say.

IRS officials note that, for now, employers and plan administrators have to file the STD benefits recaps on paper. The procedures for filing the Form 8922 recaps may change if the Form 8922 becomes eligible for electronic filing, officials say.

See also: 3 end-of-year focus areas for employee benefit plan administrators


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