According to the State of New Jersey Division of Taxation, Third-Party Sick Pay is not taxable and therefore would not be included on the 941 or W2 Forms. You can read more about this on their website, https://www.nj.gov/treasury/taxation/emailfaqs.shtml#:~:text=Unemployment%20compensation%20and%20temporary%20disability,on%20your%20New%20Jersey%20return, and then confirm the same with your CPA.

Tammi M. Ermerins ([email protected])

Certified Sage 50/Peachtree Accounting & Crystal Reports Consultant & Trainer

800-780-0700 / 954-961-0600, Visit Us on the Web at https://pcosupport.com

Thank you for your reply, but  are we, the employer, responsible to file and pay the federal government (IRS) for the FICA, Medicare, & Federal Income Tax? 

This is really a tax question which is why I suggested that you confirm with your CPA or the State of New Jersey.

Tammi M. Ermerins ([email protected])

Certified Sage 50/Peachtree Accounting & Crystal Reports Consultant & Trainer

800-780-0700 / 954-961-0600, Visit Us on the Web at https://pcosupport.com

Thanks again.  I appreciate your help.