Set up the deduction

1. Go to PR, Utilities, Maintain Deductions.
2. Click New to create a new deduction.
3. Enter the deduction ID and Description that is Employer Paid Health.
4. Select the Method.
   • Fixed amount per pay period if the deduction amount remains the same for every paycheck
   • Variable, entered on the time card if the deduction amount varies with every paycheck
5. Category: Company-Ind.
6. Define General Ledger accounts for the Credit account and Debit account.
7. Active: Always.
8. Deselect all taxable boxes. This indicates that the deduction isn’t taxable to the employee.
9. Click W-2....
   • Box number to use: Enter 12
   • ID to use: enter DD
   • Click OK
10. Save.

Add the deduction to the employee record

 NOTE: Add the deduction to each employee receiving the health care benefit. 

1. Browse to PR, Employees, Maintain Employees.
2. Select the employee.
3. Click the Deductions button.
4. Select the deduction. Don't enter an amount. 
   • If the method is Fixed amount per pay period, enter the amount to record for each pay period
   • If the deduction method is Variable entered on time card, no amount is entered
5. Click OK, then Save the employee record.

Process payroll 

1. Go to PR, Processing, Time Card Entry.
2. Process employee time cards.
3. If your deduction method uses Variable entered on time card, select the deduction in the Earnings drop-down box.
4. Enter the deduction amount.
5. Calculate time cards using PR, Processing, Automatic Payroll Calculation. Print the Payroll Register to verify all information.
6. Print your payroll checks using PR, Processing, Print Payroll Checks.

Set up the deduction

1. Set up the deduction using PR, Utilities, Maintain Deductions.
2. Click New to create a new deduction.
3. Enter the deduction ID and Description that is Employer Paid Heath.
4. Method: Variable, entered on the timecard.
5. Category: Company-Ind.
6. Define General Ledger accounts for the Credit account and Debit account.
7. Active: select Always.
8. Deselect all taxable boxes. This indicates that this deduction isn’t taxable to the employee.
9. Click W-2.
   • Box number to use - 12
   • ID to use: DD
10. Click OK.
11. Save the deduction.

Add the deduction to the employee record

 NOTE: Add the deduction to each employee receiving the health care benefit. 

1. Browse to PR, Employees, Maintain Employees.
2. Select the employee.
3. Click the Deductions button.
4. Select the deduction. Don't enter an amount.
5. Click OK, then Save the employee record.

Process payroll

1. Go to PR, Processing, Time Card Entry.
2. Process employee time cards.
3. Select the deduction in the Earnings drop-down box.
4. Enter the lump sum deduction amount in the Gross Pay field.
5. Calculate time cards using PR, Processing, Automatic Payroll Calculation.
6. Select to print the Payroll Register, and verify all information is correct.
7. Print your payroll checks using PR, Processing, Print Payroll Checks.

Set up the deduction

1. Set up the deduction using PR, Utilities, Maintain Deductions.
2. Click New to create a new deduction.
3. Enter the deduction ID and Description, that is Employer Paid Heath.
4. Method: Variable, entered on the timecard.
5. Category: Company-Ind.
6. Define General Ledger accounts for the Credit account and Debit account.
7. Active: select Always.
8. Deselect all taxable boxes. This indicates that this deduction isn’t taxable to the employee.
9. Click W-2.
   • Box number to use - 12
   • ID to use: DD
10. Click OK.
11. Save the deduction.

Add the deduction to the employee record

 NOTE: Add the deduction to each employee receiving the health care benefit. 

1. Browse to PR, Employees, Maintain Employees.
2. Select the employee.
3. Click the Deductions button.
4. Select the deduction. Don't enter an amount.
5. Click OK, then Save the employee record.

Process zero dollar paycheck

1. Go to PR, Processing, Time Card Entry.
2. Select the employee.
3. Select the deduction in the Earnings drop-down box.
4. Enter the lump sum deduction amount in the Gross Pay field.
5. Calculate time cards using PR, Processing, Automatic Payroll Calculation.
6. Select to print the Payroll Register, and verify the deduction is correct and the net pay is 0.00.
   • Any extra FWT or SWT withholding amounts will calculate, resulting in a negative check
   • Go to PR, Processing, Manual Payroll Calculation
   • Select the Fed/State taxes button and zero out the withholding amounts
7. Print your zero dollar checks using PR, Processing, Print Payroll Checks.
8. The company-paid health care benefit amount prints on the W-2 in the designated box.

 NOTE: Reactivate the employee's deductions, other pays in PR, Employees, Deductions, before processing the next payroll. 

1. Add a new box 12 in the Enhanced Tax Reporting program
2. Manually add the health care benefit amount