Sick Pay and Miscellaneous Compensation Reported on Form BA-3

The RRB looked at various ways to incorporate sick pay and miscellaneous compensation in the BA-3 report. Our test employers favored retaining sick pay as a separate item or field because they also report sick pay as a separate item on their earnings reports to SSA and tax reports to the IRS.

Benefit to employers:  A single report will be less work for employers who currently file two separate reports, Form BA-3a ‘Annual Report of Creditable Compensation’ and Form BA-10, ‘Report of Creditable Sick Pay Compensation.’ A single report may reduce errors because the combined regular Tier I compensation and sick pay Tier I compensation could be more easily compared to the annual Tier I maximum.

Example: Sick pay added to annual report as a separate field
The following is an example of BA-3 for an employee who received sick pay in 2004 and where compensation is reported on a “paid” basis, thus miscellaneous compensation is not included. For additional information on miscellaneous compensation, see Reporting Instructions to Employers.