How do I comply with the Reporting of Employer Sponsored Health Care on my W2s in my CheckMark Payroll Software?
Note: This reporting is NOT required for 2011, but will be mandatory for certain employers starting in 2012. For more information, refer to the IRS Notice 2011-28.
Continue using your Health Insurance deduction for the employee as you normally would. The reporting of the Employer Sponsored Health Care will not change what you are currently doing with your employee’s insurance AND this amount you’re reporting for the Employer Sponsored Health Care is NOT taxable and the values are NOT included in the employee’s taxable income.
Set this up at Year End:
1. Setup an Additional Income category as a Fixed Amount (0.00), Omit from net and exempt from ALL taxes. Check Box 12 and enter Code DD.
2. Assign the income to all employees that receive this benefit and enter the amount paid by the employer for each employee under the YTD tab at the end of the year..
It will show on the W2 in Box 12 with Code DD – it does NOT show on the W3.