Reporting Employer-Sponsored Healthcare Coverage on W-2s

The Affordable Care Act requires employers to report the cost of coverage under an employer-sponsored group health plan on an employee’s Form W-2, Wage and Tax Statement, in Box 12, using Code DD. 

Assuming your accountant or auditor confirms the coverage must be reported, following are the methods of entering the information into Agvance so it will display on the employee W-2.

An Employer Sponsored Health Coverage field has been added specifically to hold each employee’s amount. It is found at the Employee file on the Totals tab when Year is selected. 

The amount of qualified insurance premiums can be typed into this field.

If several employees must be edited, this entry field is also available for edit at the Batch Edit Employees utility found in Admin Utilities (Hub / Utilities / Admin Utilities / Accounting / Batch Edit Employees).

If there are groups of employees with the same dollar amount to be reported, setting up Employee Classifications can speed the entry of like amounts.

Hint: To quickly replicate the figure in the Batch Edit Employee grid, use a Ctrl-C to copy and Ctrl-V to paste.

When processing W-2s, Sponsored Benefit should be selected in the Box 12 area, using a prefix of DD

Note: These instructions require version 5.0.8280 December 2012 Agvance release or later be installed.