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Report employer health insurance on W-2s

SOLVEDby QuickBooksQuickBooks Desktop Payroll123Updated 4 weeks ago

Learn how to report health insurance you offer or reimburse to your employees on their W-2s.

Our payroll services don’t automatically report employer-sponsored health insurance on W-2s. Depending on your payroll service, you may need to call us to have it added, or take extra steps when filing your W-2s.

Select your payroll service below to get started.

Note: Not sure which payroll service you have? Here's how to find your payroll service.

The steps to report health insurance on your W-2s depend on if you chose to have us pay and file your federal and state payroll taxes for you, or if you opted to pay and file them yourself. If you aren’t sure, check your automatic tax payments and form filing status first.

Step 1: Determine if you need to report health insurance

There are two different types of health insurance you may need to report on your W-2s:

Employer-sponsored health coverage
If you file 250 or more W-2s for the year, you’re required to report the health insurance you provide your employees on their W-2s. The IRS requires this as part of the Affordable Care Act started in 2012.

If you file less than 250 W-2s for the year, you’re not required to report the health insurance coverage on the W-2s. You may opt to do this.

Note: if you’re in Vermont, you're required to report health insurance on the W-2s for all employees.

Qualified Small Employer Health Reimbursement Arrangements (QSEHRA)
If you’re a small business with 50 or fewer employees, and you reimburse your employees for healthcare, you may also be required to report QSEHRA on your W-2s.

Step 2: Report health insurance

If you have automatic tax payments and filings turned on, you can add your health insurance amounts from December 2, 2022 through January 1, 2023.

If you have automatic tax payments and filings turned off, you can add your health insurance amounts starting December 2 until you file them with the government.

  1. Select Taxes, then select Payroll Taxes.
  2. Select Filings.
  3. Select 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 coverage you provide your employees.
    • Use Box 12FF for reimbursements you give your employees.
  7. Select Submit.

Step 1: Determine if you need to report health insurance

There are two different types of health insurance you may need to report on your W-2s:

Employer-sponsored health coverage
If you file 250 or more W-2s for the year, you’re required to report the health insurance you provide your employees on their W-2s. The IRS requires this as part of the Affordable Care Act started in 2012.

If you file less than 250 W-2s for the year, you’re not required to report the health insurance coverage on the W-2s. You may opt to do this.

Note: if you’re in Vermont, you're required to report health insurance on the W-2s for all employees.

Qualified Small Employer Health Reimbursement Arrangements (QSEHRA)
If you’re a small business with 50 or fewer employees, and you reimburse your employees for healthcare, you may also be required to report QSEHRA on your W-2s.

Step 2: Report health insurance

Contact us to have your health insurance reported on your W-2s.

Step 1: Determine if you need to report health insurance

There are two different types of health insurance you may need to report on your W-2s:

Employer-sponsored health coverage
If you file 250 or more W-2s for the year, you’re required to report the health insurance you provide your employees on their W-2s. The IRS requires this as part of the Affordable Care Act started in 2012.

If you file less than 250 W-2s for the year, you’re not required to report the health insurance coverage on the W-2s. You may opt to do this.

Note: if you’re in Vermont, you're required to report health insurance on the W-2s for all employees.

Qualified Small Employer Health Reimbursement Arrangements (QSEHRA)
If you’re a small business with 50 or fewer employees, and you reimburse your employees for healthcare, you may also be required to report QSEHRA on your W-2s.

Step 2: Report health insurance

You’ll need to create a Company Contribution payroll item to record the health insurance on your employee’s W-2s.

  1. Select Employees, then Manage Payroll Items, and then select New Payroll Item.
  2. Select Custom Setup, then select Next.
  3. Select Company Contribution, then select Next.
  4. Name the payroll item. For example, "Reportable Health Coverage Cost". Then select Next.
  5. Select the Liability account drop-down, and select Add new.
  6. Select Other Expense and create a new account name (for example, "Reportable Health Coverage"). Select Save & Close.
  7. Select the Expense account drop-down and select the account you just created. Select Next.
    Note: making the liability and expense accounts the same allows you to track your health care costs without impacting your financial reports. Select Yes on the warning.
  8. Select the tax tracking type drop-down, then select Health Coverage Cost.
  9. Select Next three times, then select Finish.

Step 1: Determine if you need to report health insurance

There are two different types of health insurance you may need to report on your W-2s:

Employer-sponsored health coverage
If you file 250 or more W-2s for the year, you’re required to report the health insurance you provide your employees on their W-2s. The IRS requires this as part of the Affordable Care Act started in 2012.

If you file less than 250 W-2s for the year, you’re not required to report the health insurance coverage on the W-2s. You may opt to do this.

Note: if you’re in Vermont, you're required to report health insurance on the W-2s for all employees.

Qualified Small Employer Health Reimbursement Arrangements (QSEHRA)
If you’re a small business with 50 or fewer employees, and you reimburse your employees for healthcare, you may also be required to report QSEHRA on your W-2s.

Step 2: Report health insurance

You’ll need to manually enter these amounts on your W-2s after you download them from the IRS website.

Have other questions about your W-2s?

Get answers to more of your W-2 questions.

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