Are DBL payments considered “Sick Pay”?
Yes. And as such, payments must be reported to employers by third-party payers (such as insurance companies). Therefore, we provide you with quarterly and annual Third-Party Sick-Pay Reports. Please note: Payments are subject to FICA (Social Security and Medicare) withholding (under Public Law 97-123). Only the portion of the DBL benefit attributable to the employee’s contribution (up to 60 cents a week) is exempt from withholding.
