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How do I report Employer-Sponsored Health Care coverage on the W2 form in Sage 100

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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

CAUTION: Sage Customer Support does not assist with issues related to third-party products or enhancements, hardware, report customizations, state or federal tax-related questions, or specific accounting questions. Please get in touch with your Sage business partner, network administrator, or accountant for assistance. Please refer to our Scope of Support document for details.


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:

  1. Open Payroll, Setup, Deduction Code Maintenance
  2. Create a new deduction code
  3. From the Deduction Type drop-down menu, select Employer Contribution
  4. If applicable, enter DD in the Box 12 Code field.
  5. Enter or select the remaining applicable fields and click Accept

Assign the Employer Contribution to employees:

  1. Open Payroll, Main, Employee Maintenance
  2. Select the applicable Employee No
  3. Click the Deductions button
  4. Select the Ded Code created above
  5. Enter the per-payroll contribution amount in the Ded Rate field
  6. 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.
  7. Click Accept twice
  8. Repeat Steps 1-7 for all applicable employees
 NOTE: Once setup, the Box 12 codes will automatically print on W2 forms. If two or more deduction codes use the same Box 12 code, the amounts will be added together & the total amount will print on W2 form.
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