How to report Employer Sponsored Health Care coverage on the W-2 for Sage 100 ERP (MAS 90 / MAS 200)

Entry Type: Informational

Product: Sage MAS 90 ERP, Sage MAS 200 ERP
Application: Payroll
Version Reported: 4.30 and higher

Subject:
How to report Employer Sponsored Health Care coverage on the W-2

Possible Resolution:
The IRS has announced that they would defer the new requirement for employers to report the cost of coverage under an employer sponsored group health plan by making that reporting by employers optional in 2011. You can see more information in the IRS Newsroom Release located here and the interim guidance for reporting here.
The ability to include Box 12 Code DD on W-2 form was included in the 2011 IRD and will provide the required reporting for 2012. For versions 4.30.0.18 through 4.40.0.8, please verify 2011 IRD was installed before installing 2012 IRD. To verify 2011 IRD was installed, run the Activity Log (listed under Library Master > Reports menu) and look for “description” of “Installed 2011 Year End Changes”.

Note: Versions 4.50 & 2013 already include these changes.

Create an Employer Contribution deduction:
1. Open Payroll / Setup / Deduction Code Maintenance
2. Enter a new deduction code
3. From the Deduction Type drop-down menu, select Employer Contribution
4. If applicable, enter DD in the Box 12 Code field.
5. Enter or select the remaining applicable fields and click Accept

Assign the Employer Contribution to employees:
1. Open Payroll / Main / Employee Maintenance
2. Select the applicable Employee No
3. Click the Deductions button
4. Select the Ded Code created above
5. Enter the per-payroll contribution amount in the Ded Rate field
6. If applicable, check Automatic check box and click OK.
NOTE: If adding these amounts at the end of the year, populate the Ded. Y-T-D field with the year to date contribution amount.
7. Click Accept twice
8. Repeat Steps 5-9 for all applicable employees

To display on the W-2:
NOTE: W-2s printed using eFiling and Reporting automatically print the Box 12 code amounts and do not require the steps below.
1. Open Payroll / Period End / W2 Form Printing
2. Enter the DD in the Box 12 Codes field
3. Select the applicable W2 Form to Print
4. Click the ‘Form’ button and on the Details tab, verify Box 12 is set at ‘Y’ (yes) to print the data