Sage HRMS and the Affordable Care Act

Sage HRMS requires employer-paid benefits (full and partially paid by the employee) to be set up as a deduction and mapped to the W2 (Employer Provided Health Care).

Employer contributions must be set up as an Earnings/Deductions category of 'Benefit' with the W2 mapping set to 'Employer Provided Health Care'.

Transaction History can be used to manually enter any amounts that weren’t captured on each payroll during the year.

The value of the health care coverage is reported in Box 12 of the Form W-2, with Code DD to identify the amount. Review the Form W-2 requirements from the www.irs.gov website.

Note: There’s no reporting on the Form W-3 of the totals of these amounts.