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how do i enter the employer sponsored health coverage

How do I include the employer sponsored health coverage (IRS code 12 - DD) on an employees @w-2 ?

Best answer 01-23-2019 12:40 PM

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QuickBooks Team

Re: how do i enter the employer sponsored health coverage

Great day to you, nposada,

 

Let me help share information on how to enter Employer Sponsored Health Coverage Cost on form W-2.

 

In QuickBooks Desktop Payroll, tracking of your Employer-Sponsored Health Coverage is made easy by using the tax tracking type, Health Coverage Cost.

 

In order to use the tax tracking type to track the cost of employer-sponsored health coverage, follow these steps:

 

  1. Go to Employees menu at the top and select Manage Payroll Items.
  2. Click New Payroll Item and choose Custom Setup then click Next.
  3. Choose Company Contribution and click Next.
  4. Enter a unique name for this new payroll item which will appear on employee pay vouchers and pay stubs and on payroll reports then click Next.
  5. Leave the agency information blank and click the drop-down arrow next to the Liability account box then select <Add New>.
  6. Select Other Expense as the Account Type and create a new Account Name in the Add New Account window then click Save & Close.
  7. Click the drop-down next to the Expense account box and select the new account you just created then click Next.
  8. Click Yes to ignore the warning that you have set your liability account and expense account to the same account.
  9. Click the drop - down arrow for the tax tracking type, and select the new tax-tracking type Health Coverage Cost.
  10. Click Next three times and select Finish..

Here's a great resource with a detailed guidelines that you can check on for more detailed information: QuickBooks Desktop Payroll reporting Employer Sponsored Health Coverage Cost on Form W-2.

 

Please feel free to reach back out if you need further assistance in entering Employer Sponsored Health Coverage Cost on Form W-2, I'm always here to help.

 

 

1 Comment
QuickBooks Team

Re: how do i enter the employer sponsored health coverage

Great day to you, nposada,

 

Let me help share information on how to enter Employer Sponsored Health Coverage Cost on form W-2.

 

In QuickBooks Desktop Payroll, tracking of your Employer-Sponsored Health Coverage is made easy by using the tax tracking type, Health Coverage Cost.

 

In order to use the tax tracking type to track the cost of employer-sponsored health coverage, follow these steps:

 

  1. Go to Employees menu at the top and select Manage Payroll Items.
  2. Click New Payroll Item and choose Custom Setup then click Next.
  3. Choose Company Contribution and click Next.
  4. Enter a unique name for this new payroll item which will appear on employee pay vouchers and pay stubs and on payroll reports then click Next.
  5. Leave the agency information blank and click the drop-down arrow next to the Liability account box then select <Add New>.
  6. Select Other Expense as the Account Type and create a new Account Name in the Add New Account window then click Save & Close.
  7. Click the drop-down next to the Expense account box and select the new account you just created then click Next.
  8. Click Yes to ignore the warning that you have set your liability account and expense account to the same account.
  9. Click the drop - down arrow for the tax tracking type, and select the new tax-tracking type Health Coverage Cost.
  10. Click Next three times and select Finish..

Here's a great resource with a detailed guidelines that you can check on for more detailed information: QuickBooks Desktop Payroll reporting Employer Sponsored Health Coverage Cost on Form W-2.

 

Please feel free to reach back out if you need further assistance in entering Employer Sponsored Health Coverage Cost on Form W-2, I'm always here to help.