1. Setting up an employee and company paid benefit

1. Select Maintain, Payroll, Benefits - Company Settings.
2. Select Add Another Benefit.
3. Select Insurance Plan, then click OK.
4. Select the type of insurance plan you’re adding (Medical, Dental, Vision, etc.).
5. Select Both employee and company for Who pays for this plan?
6. Enter a name for the benefit if necessary.
7. Click Next.
8. Select the appropriate option for the question: Are the company expenses for this plan tracked per paycheck?
   • No -  (This is most common) Select this option if you don't wish to track the company portion of the benefit
   • Yes - Entries are for reporting only:  Select this option if you wish to report the amount only on the employees' W-2
   • Yes - entries affect the general ledger, financial statements, and reporting:  Select this option if you want the liability and expenses recorded on each paycheck
9. If there’s a standard amount the company pays for most or all of the employees, enter that amount. Otherwise, leave the amount at $0.00.
   • This field won't be visible if you selected No in step 8.
10. If there’s a standard amount that applies to most or all of the employees, enter that amount. Otherwise, leave the amount at $0.00.
11. Select either Yes or No on the next question. Then click Next.
12. Select the appropriate Tax Settings - Employee Contribution for the benefit, and then click Next.
13. Select the appropriate Tax Settings - Company Contribution for the benefit, and then click Next.
14. Select an appropriate GL Account Number for the employee's contribution to the benefit.
15. Click Next.
16. Enter the appropriate GL Account Numbers for the company's contribution to the benefit name.
    • The benefit won't be listed if you selected No in step 8.
17. Click Finish.

2. Change the benefit amount for employees

1. If any employee pays an amount that’s different than you entered in step 9 above, go to Maintain, Employee/Sales Reps.
2. Select the appropriate Employee ID.
3. Select the Employee Fields tab.
4. Un-check Use Defaults next to the benefit name and enter the amount for the deduction as a negative number in the Amount field.
5. Click Save.
6. Repeat the steps for each employee that needs a different amount.

3. Change the benefit amount for the employer

1. If the company contribution amount is different for an employee than you entered in step 10 above, select the File, Payroll Formulas, User Maintained.
2. Select Medica C in the Formula ID field.
3. Change the Formula ID to Medic2 C.
4. Change the Name to Medical2 Company [2-digit year].
5. If the Formula box, change the amount listed after ANSWER=-.
   • Be careful not to delete the dash after the equal sign.
6. Click Save, then Close.
7. Go to Maintain Employee/Sales Reps.
8. Select the appropriate Employee ID.
9. Select the Company Fields tab.
10. Un-check Use Defaults next to the benefit name and click in the Formula Field.
11. Click the down arrow and change the Formula to Medical2 Company.
12. Click Save.
13. Repeat the steps for each amount that’s different, changing the Formula ID and Name to a unique name each time (For Example, Medic3, Medic4, Medical3 Company, Medical4 Company, etc.).

4. Reporting the cost of coverage on the employees' W-2 forms

1. Select Maintain, Payroll, Payroll Settings.
2. Select Taxes on the left side.
3. Select Assign Tax Fields.
4. Select W-2 Fields.
5. In W-2 Box 12, select one of the empty boxes and select the name of the health plan from the dropdown list.
6. Enter DD in the Use Code column and click OK and then Finish.
   • If the company expenses were tracked on the paychecks from the beginning of the year, stop here.
7. In the Verify Employee Information window of the W-2 Wizard, enter the reported amount in box 12.
8. Continue with the W-2 Wizard as normal.