Report Employer-Sponsored Health Care coverage on the W-2 form

Summary

Report Employer-Sponsored Health Care coverage on the W-2 form for Sage 100 ERP

Resolution

CAUTION: Sage support can't assist with third-party products, hardware, report customizations, or state and federal tax questions. Refer to our Scope of Support for more info. Contact your Sage business partner, network administrator, or accountant for assistance.

 

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 doesn’t mean that the coverage is taxable. The value of the employer’s excludable contribution to health coverage remains excludable from an employee's income, and it isn’t 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, 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 the 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 the total at the bottom equals the YTD contribution amount.
  7. Click Accept twice
  8. Repeat Steps 1-7 for all applicable employees
 NOTE: Once set up, the Box 12 codes will automatically print on the W-2 forms. If two or more deduction codes use the same Box 12 code, the amounts are added together.  The total amount prints on the W-2 form.

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Solution Properties

Solution ID
222924450019289
Last Modified Date
Mon Nov 17 22:27:39 UTC 2025
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