Browse health, insurance and disability deduction codes.
TPS may identify third-party sick pay that payroll treats as nontaxable. The label does not establish the correct treatment without knowing how the underlying insurance premiums were funded.
Employer-specific label: this is a possible interpretation. Confirm the full meaning in the codebook for the employer that issued your statement.
How to read this entry
Use the possible interpretation Third-party sick pay reported as nontaxable alongside the column heading. An earnings amount, an employee deduction and an employer-cost memo can have different effects even when their labels look similar.
Example on a pay statement
An insurer payment may appear in payroll history for reporting even though the employer did not deposit that amount.
Examples illustrate the checking method. They are not a personal tax calculation or a promise of a particular benefit.
What to check with payroll
Compare the insurer’s statement, premium funding and any W-2 reporting; confirm which taxes the entry is excluded from.
Compare related entries
Read the health, insurance and disability deduction codes guide to compare the entries in this part of your statement. Use the full pay stub code directory when a second abbreviation is unfamiliar.
Reference and scope
Official guidance on health, insurance and disability deduction codes provides background on the underlying rules. It does not validate an individual employer’s internal abbreviation.