1600.2.85 Sick Pay

Count as earned income when the person gets it while employed.

Count as unearned income when the person getting it is no longer an employee and is paid out in more than one check over a period of time.

Exclude the sick pay as a lump sum (nonrecurring) when paid in one payment and the person getting it is no longer an employee.

When co-workers donate their sick leave time, count the payments the same as if they were the person’s own sick pay.