Drake Accounting®: How do I report Employer-Sponsored Health Coverage on Form W-2?
According to the Form W-2 instructions:
"Reporting the cost of group health insurance coverage. You must report the cost of employer-sponsored health coverage in box 12 using code DD. However, transitional relief applies to certain employers and certain types of plans. For more information, see Box 12 - codes for Code DD - Cost of employer-sponsored health coverage." [of the W-2 instructions]
To report employer-sponsored health insurance coverage in DAS, set it up as a benefit at Employees > Deductions & Benefits > Benefits tab. Be sure to select:
- Not Taxed - Not Applied to Gross or Net Pay from the Taxing and Income Options droplist, and
- DD from the W-2 Box 12 droplist.