The IRS has released additional guidance regarding the W-2 health insurance reporting requirement contained in the Affordable Care Act (ACA). The ACA requires employers to report the “aggregate cost” of certain types of employer provided health coverage on an employee’s W-2. For the 2013 reporting period, W-2’s printed in 2014, the requirements for the employer and employee health care amounts only need to be provided on the W-2 if the company has over 250 W-2’s for 2013.
Employers who file fewer than 250 W-2s do not need to worry about this requirement for now, but should continue to monitor the situation in the event that the IRS eventually issues guidance making the rule applicable for small employers sometime in the future.
If your company will surpass the 250 W2 mark in 2014, you should develop a system to track the necessary information on W-2s to be filed in 2015. In SAGE 100, you will need to add a deduction for employer contributions and set Box 12 to use code “DD”. Then add this deduction to all employees. This should be completed before the first Payroll in 2014 so the employer contribution will be correct at the end of the year.
For more information, please visit the following site: http://www.irs.gov/uac/Employer-Provided-Health-Coverage-Informational-Reporting-Requirements:-Questions-and-Answers
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