Part of the IRS requirements for the Affordable Care Act are for employers to report the value of the health insurance coverage they provide employees on the Form W-2.

If you have not tracked the cost of health care using a fringe in Payroll:

How do I enter employer-sponsored health care costs if I have not tracked them in Payroll?

If you have tracked the cost of health care using a fringe in Payroll:

Note: You will need to set up a formula that combines the employer and employee paid health care amounts. For more information, see How do I create a formula that combines employee and employer health care amounts to show on the W-2?

1. From the Payroll Tools menu, select Modify Forms, W-2 Forms.
2. Select the W-2 form you are using and click the Amounts Tab.
3. In the first available line for Box 12, click in the left box and enter DD.
4. In the right box you are using and click the Formula button and select the formula for employer sponsored health coverage and click OK.
5. Click Save and Close.