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- End of Calendar Year
Training Tidbit: Reporting Employer-Sponsored Health Coverage Cost on W2s
Did you know there are two methods available for reporting the cost of employer-sponsored health coverage on the W2s? The first method is to define the applicable deductions to post to Box 12DD within the Deduction File in order to report the actual amount paid by the employee and employer for the employer-sponsored health coverage.
The second method is to import a file containing the amounts to report in Box 12DD by utilizing the Import Box 12DD Amounts option (accessed from the Options menu on the Employee W2s screen). Typically, this second method for importing a file is completed instead of the first method in order to report an amount (provided by the health insurance company) that is different than the amount withheld and expensed for the deduction.
As a reminder, reporting the cost of employer-sponsored health coverage on W2s is required for those employers who filed 250 or more W2s in the prior year; it is optional for those who filed less than 250 W2s in the prior year.
For more information on reporting employer-sponsored health coverage, click this link: http://www.irs.gov/uac/Form-W-2-Reporting-of-Employer-Sponsored-Health-Coverage.
Note: Both methods are reviewed in detail during the Payroll End of Calendar Year Checklist for W2s Webinar; if desired, visit our training calendar to register for an upcoming webinar.