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Faith-hope
Level 2

How to add to 2023 W2 Form Box 12 DD employer sponsored health insurance information

Hello dear community members, Does any one know how to add Box 12 employer sponsored health insurance amount to employees' W2 forms? I contacted on January 3, 2024  Quickbooks payroll service and they kept telling me that it can not be done. Any solution? The feature of automated tax and form is turned on currently. Thanks for any input?

9 Comments 9
RCV
QuickBooks Team
QuickBooks Team

How to add to 2023 W2 Form Box 12 DD employer sponsored health insurance information

Let me share some information about adding employer health insurance on W-2s in QuickBooks Online (QBO), Faith-hope.

 

We appreciate you for contacting our Payroll Support Team about this one. Our payroll services don’t automatically report employer-sponsored health insurance on W-2s. You may need to call us to have it added or take extra steps when filing your W-2s (depending on your payroll service). When you're required to report health insurance on your W-2s, there are some things we need to consider:

 

  • If you reimburse your employees for their healthcare and you have 50 or fewer employees, you may be required to report QSEHRA
  • If you're in Vermont, you're required to report health insurance on the W-2s for all employees
  • If you file 250 or more W-2s for the year

 

Then, we can add your health insurance amounts from December 4, 2023, through January 1, 2024, if you have automatic tax payments and filings turned on. If it is turned off, just add your health insurance amounts starting December 2 until you file them with the government. Here's how:

 

  1. Click Taxes, then select Payroll Taxes.
  2. Tap Filings.
  3. Hit Resources.
  4. Select W-2s.
  5. From Employee W-2s, select Edit Box 12/13 on W-2 Copies B, C, & 2 (employee).
  6. Enter the dollar amount for each employee: (Use Box 12DD for the coverage you provide your employees or use Box 12FF for reimbursements you give your employees).
  7. Press Submit.

 

You can check these articles for more insights on how QuickBooks populates W2 and how supported pay types and deductions impact federal taxes and forms: W2 form boxes explained.

 

Please know the Community has your back. If you need further assistance when working with payroll forms in QuickBooks, click the Reply button and post a comment. I’ll jump right back in to help. Have a good one.

Faith-hope
Level 2

How to add to 2023 W2 Form Box 12 DD employer sponsored health insurance information

Hi,

If  January 1, 2024 has passed, can I turn off the automated tax and filing feature and then edit the W2? If so, after I edit box 12, can I turn on the automated tax and filing again without affecting other automated tax filing that were scheduled before I turn the automated feature off? Thanks for your reply.

JaeAnnC
QuickBooks Team

How to add to 2023 W2 Form Box 12 DD employer sponsored health insurance information

I appreciate you for getting back to us, @Faith-hope. Allow me to point you in the right direction so you can get the assistance you need in reporting employer health insurance on W-2s in QuickBooks Online (QBO).

 

Currently, you're unable to turn Auto-Pay/File off since it has been temporarily disabled until February to prevent filing issues or mishaps. Once toggled, it will go into effect on the first of the following month. This allows our automated system to go through its processes with less concern for error.

 

That said, I recommend reaching out to our customer support team so they can add employer health insurance to your W-2 forms. To do that:

 

  1. Go to the Help icon and choose the Search tab.
  2. Select Contact Us.
  3. Describe your concern and select Continue.
  4. Choose between Chat with us and Have us call you.

 

Furthermore, I'm sharing this list of payroll reports that will be beneficial whenever you need an overview of employee wages, taxes, and contributions: Run payroll reports.

 

Feel free to swing by the Community anytime if you need additional assistance with W-2s in QBO. We're always around to provide support whenever you need it. Keep safe, and have a great rest of the day!

Brita2
Level 3

How to add to 2023 W2 Form Box 12 DD employer sponsored health insurance information

How do you do this same thing using quickbooks desktop

FishingForAnswers
Level 10

How to add to 2023 W2 Form Box 12 DD employer sponsored health insurance information

@Brita2  By coding the relevant payroll item to the correct tax tracking type.

 

This can be found by opening the Payroll Item List, right-clicking the item to find the Edit Payroll Item option, and going through the settings. Should be the third screen in line.

FishingForAnswers
Level 10

How to add to 2023 W2 Form Box 12 DD employer sponsored health insurance information

@RCV  "Our payroll services don’t automatically report employer-sponsored health insurance on W-2s."

 

Excuse my French, but what the in blue hell do you mean, your payroll service doesn't do that?

 

That's like saying your accounting software doesn't allow you to do journal entries effectively.

 

...Wait a second...

CamelleT
QuickBooks Team

How to add to 2023 W2 Form Box 12 DD employer sponsored health insurance information

I'd gladly guide you in adding employer-sponsored health insurance information on the W2 form in QuickBooks Desktop (QBDT), Faith.

 

First off, FishingForAnswers' input correctly highlights the need to map the payroll item to the appropriate tax tracking type, which is the Health Coverage Cost, to report it on the W-2, box 12, code DD. To accomplish this, follow the steps below:

 

  1. Go to Lists, then Payroll Item List.
  2. Locate the health insurance item name and right-click on it.

    _d0fa55ba-3808-452b-9575-c8f394a628dc__720.png

  3. Select Edit Payroll Item.

    _a6ceb87d-2e8d-4616-8da6-bc05f7b96ba3__480.png  

  4. Hit Next twice and click Yes.
  5. From the Tax tracking type dropdown, click Health Coverage Cost.

    _82c8976f-bb16-4fe6-831d-56629c5d09c1__480.png
     
  6. Select Next thrice, then Finish.

 

For more details about this process, refer to this article: Report employer health insurance on W-2s.

 

Moreover, I'll share this resource to guide you in securing paper copies of your W-2 forms: Print your W-2 and W-3 forms.

 

If you have other questions about handling payroll forms in QBDT, click the Reply button below. We're always here to assist.

Brita2
Level 3

How to add to 2023 W2 Form Box 12 DD employer sponsored health insurance information

What if the payroll expense is a Pretax,  i.e. Premium/125 plan.  Is it safe to change the tax tracking type?

Clark_B
QuickBooks Team

How to add to 2023 W2 Form Box 12 DD employer sponsored health insurance information

Yes, it's safe to change the tax tracking type. However, please note that certain taxes may be impacted by this payroll item, @Brita2. Let me provide additional details below regarding the affected payroll items.

 

To begin with, Premium Only/125 is utilized for employee pre-tax contributions to premium-only and cafeteria plans linked to a Section 125 plan. This tax tracking type pertains to employee deductions. Changing the tax tracking type for a pre-tax payroll expense can influence the calculation and reporting of deductions. Before making any changes, I advise consulting your accountant or a tax professional to ensure compliance and accuracy.

 

Here are the effects on federal forms when used as a deduction with default taxability settings:

 

  • 940: Included in wages (line 3), increases exempt payments (line 4)
  • 941: Reduces wages (lines 2, 5a, 5c)
  • 944: Reduces wages (lines 1, 4a, 4c)
  • W-2: Reduces wages (boxes 1, 3, 5)

 

Additionally, based on the tax tracking type you've chosen, QuickBooks automatically identifies the taxes most likely affected by this payroll item. You don't need to change the selections shown below:

 

  • Federal Unemployment
  • Federal Withholding
  • Medicare Company
  • Medicare Employee
  • Social Security Company
  • Social Security Employee
  • State-Withholding
  • State-Disability Employee
  • State-Employee Training Tax
  • Medicare Employee Tax

 

To modify the tax tracking type, follow these steps:

 

  1. Navigate to the Lists menu and choose Payroll Item List.
  2. Find the health insurance item name, then right-click on it.
  3. Click Edit Payroll Item and enter the required information.
  4. Select Next to continue entering additional necessary details.
  5. From the Tax Tracking Type dropdown, select Premium Only/125.
  6. After that, click Next three times and choose Finish.

 

 

 

You can also refer to this article to learn how to report the health insurance you provide or reimburse your employees on their W-2s: Report employer health insurance on W-2s.

 

I'll also include this article, which you may find useful for printing W-2s if you provide paper copies to your employees, maintain your records, or send a W-3 to your accountant: Print your W-2 and W-3 forms: Print your W-2 and W-3 forms.

 

Please know that I'm here to assist you with any questions regarding Premium 125, tax tracking types, or managing payroll forms in QuickBooks. Feel free to use the comment section for a prompt response.

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