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Did you get this answered outside the forum?

What specifically is the question? Are you usiing HR with payroll or just payroll?

I too am having a great deal of trouble with the 3rd part sick entry into GP.  How do I set up a taxable benefit and what do I do after I set that up?  I need detailed instructions from a helpful soul as I have pulled my hair out.   I enter them as a manual check like a consultant told me, but it is not our expense except the ER taxes... now i have it as a regular expense and the CFO is smoking!!

I really need help in this.

I have set it up the same as you, as a taxable benefit or even a paycode.   The key to keeping the CFO happy is when the manual check batch is posted on the payroll side, make sure that the batch is only posted 'To GL'.    At that point you could delete or edit the batch in GL and post just the entries necessary.

When setting up the taxable benefit, I assigned the same GL account in the payroll accounts posting setup for both the Taxable Benefits Expense and Taxable Benefits Payable (in our case a suspense account.)  That way it just washes out in the GL.  

I'm really being tested here, it's been two years since we did away with that insurance policy and don't have a need for this anymore.

In addition to the benefit code, we also setup a pay code to record the payroll tax expense.  We called it TPTAX (Third-party Tax) and had it post to the payroll tax expense account.

So the entries to record the payment and make it appear on the employee's W-2 form include:

-Entry to the taxable benefit code in the amount of the gross amount of the third party payment

-Entry to  each of the tax codes involved (whether or not any taxes were actually withheld because you need to update the taxable income for each of the tax codes to which the pay is subject)

-Entry to the TPTAX pay code in the total amount of the taxes withheld by the third party (this worked for us because none of the payments had anything but SS & Medicare withheld.)  When making the entries to the SS/Medicare codes be sure to enter the employer tax in the EFIC field.

What resulted was increasing all of the appropriate taxable wages, the employer portion of taxes were accrued and expensed and the third party remitted taxes washed out in the resulting journal entry.

I'm afraid this is pretty convoluted and I'm not sure I explained it exceptionally well, so keep asking questions and I'll keep digging for answers.

Gonna give it a try... after I reverse the original one I put in.

I will let you know...