Employer-Paid Health Insurance

Employer-Paid Health Insurance

Do you have deductions set up for employer contributions for health insurance in the Payroll module? If not, you may wish to request a proposal for consulting services so that one of our Payroll specialists can help you get these set up and in place prior to your first payroll in 2012.
A?_SPONSORED HLTH?_W2 deduction type (for OpenRDA/Xpert) and deduction type number?_205?_(for MBGUI) were created in early 2011 for reporting the cost of coverage under an employer-sponsored health plan on the W2 (as this was originally to be implemented for calendar year 2011 for employee and employer paid health deductions). ?_However, interim relief was provided by the IRS so that employers could make changes in their payroll setup for compliance beginning in 2012. ?_W2 Deduction Types are used when loading W2s and do not affect actual payroll processing. If you already have deductions set up in the Payroll module for employer contributions for health insurance, you do not need to do anything at this time, Also, please note that this code/deduction type will not be included on the 2011 W2s.
While small towns and villages may be able to accomplish the reporting requirements by editing the?_2012?_W2s after they are loaded, this could prove to be a daunting task for larger organizations. Aside from addressing this W2 requirement, there are other benefits in having the Payroll program automatically compute and expense all employer-paid benefits (reporting capabilities, automatic expensing as the payroll is distributed, inclusion in vendor withholding checks, etc). If you’re not certain what is already in place for your organization, try running a deduction register that is sorted by deduction type and who pays.
Transitional relief is provided to small employers for tax/calendar year 2012 (organizations that file fewer than 250 W2s). More information is available on the?_Affordable Care Act Provisions of IRS.gov

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