Actually, found this article that I believe is what we need.

How to account for Third Party Sick Pay on W-2 and 941 tax forms for Sage 100 Payroll v2.x and higher

Justin,

That field is also used in Payroll for states that require the Employer to pay the disability tax or part of it.    In some states, the State Disability tax is paid by the employee.  The accrual general ledger accounts and rates for the Employee and/or Employer disability tax are held in the Company Tax Group Setup.  In some states the rate for some taxes is a set rate for all employers or employees.  If you do not see a dropdown on the Tax Rates tab for a tax, that is the reason.  

If the suggestion above worked for you, please do mark it as Verified  (by clicking the “…” button next to Reply on that post) — it really helps others in the community find solutions faster.

And if you try a different approach or make any tweaks that work even better, we’d love to hear back! Your experience could help other Sage 100 users tackling the same import setup. 

Thank you for being part of the Sage Community!