Health Care Reform: W-2 Reporting in GP

With the year-ending 2012, many employers will be required to report the cost of each employee’s coverage under an employer-sponsored group health plan on the employee’s W-2.  To Include this information into payroll in Microsoft Dynamics GP is to set up corresponding benefits as follows: the benefit should be set up as not subject to any taxes as it is not included in taxable income, and it should be set up to print in W-2 Box 12, with W-2 Label ‘DD’, as pictured below:

Payroll >> Setup >> Payroll >> Benefit

If you are already tracking the benefits in your Dynamics GP payroll, you may need only to add the W-2 Box and W-2 Label information.

If you are not currently tracking the benefits in GP payroll, you can set the benefit up at any time prior to the end of the year, but it needs to be in place and processed in at least one payroll before year end (either computer or manual checks) in order to be included in the Year-End Wage file for W-2 printing.  You could choose to set it up to be included as an equal amount every payroll (corresponding to the health insurance deduction, if applicable) or you could choose to process it once for the entire year’s amount during one of the last payrolls of the year, similar to how many employers handle the group-term health or auto allowance benefits.

Please note, this post is not intended to advise any person or organization of their specific compliance requirements under the Affordable Care Act.  This post is meant to only demonstrate how to comply with those requirements in Dynamics GP’s payroll system. For more information regarding the Affordable Care Act and your specific requirements, please contact your tax advisor.

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