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Client gets sick pay now the insurance company wants to offer a settlement is the settlement taxable

470pitt
Level 2

Client get sick pay now the insurance company wants to offer a settlement is this settlement taxable

or does she need to find out if it is going to be on a 1099 or w-2

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3 Replies 3
qbteachmt
Level 15

How has the sick pay been reported and tax treated all this time? The taxable status usually depends on who paid for the policy and if that was post-tax or pre-tax funds.

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The-Tax-Lady
Level 8

Is it 3rd party sick pay from an employer provided benefit or are we talking about Workers Compensation pay?

qbteachmt
Level 15

{crickets}

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