Sage 100

v2016 YE Health insurance reporting requirement - Client just sent me this note regarding Health Insurance W2 reporting. Their take on the attached is that they have to show the total cost on the employee's w-2. I don't have any other clients doing this. Was wanting to run this by the ACA gurus in the group. Do W-2's have to have total health insurance costs in Box 12????

Should there be an attachment?

Is this for Box 12 Code DD?

Sorry about the missing attachment. See about now. Yes, Box 12 DD.

No problem, just want to make I was on the right thought. Yes, there is a reporting requirement for premiums: https://www.irs.gov/affordable-care-act/form-w-2-reporting-of-employer-sponsored-health-coverage. This may help.

So how are others handling this?

Set up an employer contribution deduction code?

Assign the employee [portion of the health care premiums] deduction code with the Box 12 Code DD, and create an employer contribution deduction code and assign it the Box 12 Code DD. The system will total it for you and include on the W2 Forms.

Sage actually has a KB entry for that https://support.na.sage.com/selfservice/viewdocument.do?noCount=true&externalId=19289&sliceId=1&cmd=displayKC&dialogID=298398&docType=kc&isLoadPublishedVer=&stateId=298405&docTypeID=DT_Article&ViewedDocsListHelper=com.kanisa.apps.common.BaseViewedDocsListHelperImpl

Is there a minimum employee threshold for this reporting requirement?

Transitional relief described is until the IRS changes their mind. It is not horrible to report so my recommendation is to start a employer contribution and update when premiums update. The rules for transition are here and specifically #4 with the answer of 250 employees...https://www.irs.gov/uac/employer-provided-health-coverage-informational-reporting-requirements-questions-and-answers

I agree with many. Might as well do it regardless. However, I was concerned about my clients who did NOT do it last year and whether I would need to help them be compliant before 1/31/16. Thanks all for posting.