Printable Form 2026

IRS Form 8922 – Third-Party Sick Pay Recap

IRS Form 8922 – Third-Party Sick Pay Recap – In the complex world of payroll and employment taxes, managing third-party sick pay can be challenging for employers and insurers alike. IRS Form 8922, also known as the Third-Party Sick Pay Recap, plays a crucial role in ensuring accurate reporting and reconciliation of these payments. Whether you’re an employer handling sick pay through an insurance provider or a third-party payer, this form helps align your employment tax returns with Forms W-2. In this comprehensive guide, we’ll break down everything you need to know about Form 8922 for the 2026 filing season, including its purpose, who needs to file it, and step-by-step instructions.

What Is IRS Form 8922?

IRS Form 8922 is a reconciliation tool used to match employment tax returns—such as Form 941 (Employer’s Quarterly Federal Tax Return)—with Forms W-2 when sick pay is handled by a third party. This form ensures that federal income tax withholding, social security taxes, and Medicare taxes on third-party sick pay are properly reported and reconciled. Third-party sick pay typically refers to payments made by an insurance company or agent on behalf of an employer for employee absences due to illness or injury, excluding qualified sick leave wages under certain COVID-19 relief provisions.

The form is essential for avoiding discrepancies in tax reporting. For instance, if an insurer pays sick benefits but reports them under the employer’s name and EIN, the employer may need to file this recap to clarify the tax liabilities. It’s processed solely by the IRS and not sent to the Social Security Administration, focusing exclusively on third-party sick pay reconciliation.

Key highlights from the form include:

  • Reconciliation of taxes on sick pay subject to federal income, social security, and Medicare taxes.
  • Reporting of withheld amounts for these taxes.
  • Applicability to ordinary sick pay, not emergency or family leave wages.

For the latest version, download Form 8922 directly from the IRS website at https://www.irs.gov/pub/irs-pdf/f8922.pdf. The form was last revised in October 2024 and is now a continuous-use form, meaning it’s updated only as needed rather than annually.

Who Must File Form 8922?

Not every employer or payer needs to file Form 8922—it’s specific to scenarios involving third-party sick pay. Generally, you must file if the employer’s share of social security and Medicare taxes on sick pay is reported on the employer’s employment tax return. Here’s a breakdown:

  • Employers: File if sick pay is reported on Forms W-2 using the insurer’s or agent’s name and EIN. This shifts the reconciliation responsibility to you as the employer.
  • Insurers or Agents: File if sick pay is reported on Forms W-2 using the employer’s name and EIN. In this case, the third party handles the form to reconcile the split tax liabilities.

Exceptions may apply if the third party acts strictly as the employer’s agent without assuming tax liability. If you have multiple contracts with different insurers, submit a separate Form 8922 for each. For detailed scenarios, refer to IRS Publication 15-A (Employer’s Supplemental Tax Guide), which provides examples of third-party sick pay reporting.

When and Where to File Form 8922?

Timing is critical for compliance. File Form 8922 by the last day of February following the calendar year in which the sick pay was paid. For example, for 2025 sick pay, the deadline is February 28, 2026 (or the next business day if it falls on a weekend or holiday).

Where to send it depends on your principal business location:

  • States like Alabama, Arizona, Florida, etc.: Mail to Internal Revenue Service, Memphis Service Center, P.O. Box 87, Mail Stop 814 D6, Memphis, TN 38101-0087.
  • States like California, Illinois, New York, etc.: Mail to Internal Revenue Service, IRS SSA CAWR, Philadelphia, PA 19255-0533.
  • Outside the U.S.: Use the Philadelphia address.

For private delivery services (e.g., FedEx or UPS), use alternative street addresses listed in the instructions. Electronic filing isn’t available for this form—it’s paper-only.

How to Fill Out IRS Form 8922: Step-by-Step Instructions?

Filling out Form 8922 is straightforward but requires accurate data from your payroll records. Here’s a step-by-step guide based on the official instructions:

  1. Enter the Calendar Year: Input the four-digit year (e.g., 2025) for the sick pay being reported.
  2. Check the Filer Type: Select “Employer” or “Insurer/Agent” based on your role.
  3. Filer’s Information: Provide your name, address, phone number, and EIN.
  4. Other Party’s Information: Enter the name and EIN of the other party (e.g., insurer if you’re the employer). Skip if not required for insurers.
  5. Box 1: Sick Pay Subject to Federal Income Tax: Total amount of sick pay taxable for federal income tax.
  6. Box 2: Federal Income Tax Withheld: Amount withheld from the sick pay.
  7. Box 3: Sick Pay Subject to Social Security Tax: Total subject to social security.
  8. Box 4: Social Security Tax Withheld: Withheld amount (employee portion).
  9. Box 5: Sick Pay Subject to Medicare Tax: Total subject to Medicare (including Additional Medicare Tax if applicable).
  10. Box 6: Medicare Tax Withheld: Withheld amount.

For corrections, mark the “CORRECTED” box and resubmit a complete form. Retain records for at least four years. Substitute forms are allowed if they match IRS standards—see Publication 1167 for details.

Common Mistakes to Avoid When Filing Form 8922

  • Confusing Sick Pay Types: Ensure you’re reporting ordinary sick pay, not qualified sick leave wages.
  • Incorrect EIN Usage: Use the correct EIN based on how W-2s were reported.
  • Missing Multiple Forms: File separately for each contract or employer.
  • Late Filing: Penalties may apply for delays—aim to file early.

Additional Resources for Form 8922

For more in-depth guidance:

Staying compliant with Form 8922 not only avoids IRS scrutiny but also ensures smooth payroll operations. If you’re unsure about your specific situation, consult a tax professional or the IRS directly. This guide is based on the most current information as of February 2026, but always verify with official sources for any changes.