CenterPoint Payroll - Reporting Employer Paid Health Insurance on the W-2

W-2 Forms Prepare & Print - Duration: 53 min 36 sec

 

Document #: 3225 Product: CenterPoint® Payroll

 

The Affordable Healthcare Act requires most employers to report the cost of employer sponsored health insurance in Box 12 on the W-2. CenterPoint can easily track the employer paid portion of health insurance and both the employee deduction and employer benefit amounts can be reported on the W-2.

Option A: Add Benefit to CenterPoint. This will automatically be added to W-2s

Option B: Manually add Health Insurance to W-2 grid in Aatrix

Option A: Edit the Health Insurance Deduction

  1. Select Setup > Payroll Details > Deductions & Benefits. Click on the Health Insurance deduction and choose Edit.

  1. If the deduction/benefit is already calculating the employee and employer share of health insurance, make sure the W-2 Box - Options for both the Employee and Employer detail is filled in with Box 12 Code DD - Cost of employer-sponsored health coverage, then click Save. The health insurance amounts will print in Box 12 Code DD on the W-2.
  2. If the deduction is currently setup to calculate just the employee share, it will need to be updated to include the employer share as well.
    • Change the Contributor to Both.
    • Select an Expense Account
    • Fill in the Employer Detail section. The W-2 Box - Option should be Box 12 Code DD.
    • Click Save.
  3. If you do not currently have a deduction/benefit set up for Health Insurance, please see the document Deduction & Benefit Setup.

Add Employer Share of Health Insurance to Employee

Once the Deduction/Benefit is setup with the employer share, the amount the employer pays must be added to the employees record.

  1. Select Setup > Employees. Highlight the employee and click Edit.
  2. Click on the Deductions & Benefits tab. In the upper box, select the Employer line under the Health Insurance deduction/benefit.

  1. Enter the Rate. This is the amount of benefit that will be calculated with each pay run.
  2. Click Save.
  3. Repeat for each employee.

Option B: Manually Add to Aatrix Grid

  1. Follow W-2 steps like usual until you get to the W-2 Preparer (grid).
  2. Right-click on column header and choose Insert.
    1. Enter a name for the column.
    2. Enter a default value (optional).
    3. Click OK.
  3. This adds a Yellow - Unassigned column to the grid.
  4. Click on the Yellow - Unassigned header and choose Box 12 - Code DD.
  5. Enter the appropriate amount for each employee.
  6. Continue processing W-2s as usual.

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