Cause
Staying on top of the Affordable Care Act is critical—and challenging—particularly when it comes to your obligations under the law.
As a trusted expert advising companies around the world for the past 30 years, Sage is ready to help support you through healthcare reform and answer your questions.
To assist you, we’ve set up an Sage ACA Center that includes many assets you may find useful in navigating the changes (please note, some assets require an active Sage Business Care plan to access).
Resolution
The Affordable Care Act (ACA) requires employers to report the cost of coverage under an employer-sponsored group health plan. Reporting the cost of health care coverage on the Form W-2 does not mean that the coverage is taxable. The value of the employer’s excludable contribution to health coverage continues to be excludable from an employee's income, and it is not taxable. This reporting is for informational purposes only and will provide employees useful and comparable consumer information on the cost of their health care coverage. For more details, please visit the IRS website, Form W-2 Reporting of Employer-Sponsored Health Coverage
Create an Employer Contribution deduction:
- Open Payroll, Setup, Deduction Code Maintenance
- Create a new deduction code
- From the Deduction Type drop-down menu, select Employer Contribution
- If applicable, enter DD in the Box 12 Code field.
- Enter or select the remaining applicable fields and click Accept
Assign the Employer Contribution to employees:
- Open Payroll, Main, Employee Maintenance
- Select the applicable Employee No
- Click the Deductions button
- Select the Ded Code created above
- Enter the per-payroll contribution amount in the Ded Rate field
- If applicable, check Automatic check box and click OK.
Note: If adding these amounts at the end of the year, populate the Month Amount fields with the appropriate amounts so that total at bottom equals YTD contribution amount. - Click Accept twice
- Repeat Steps 1-7 for all applicable employees