Employer-Sponsored Health Coverage Cost on W-2 Form

Q: I was wondering if the new changes for 2015 W-2 reporting will be in place? This is for adding EMPLOYER COST OF HEALTH INSURANCE to the W-2 with the code DD.

A: 
Yes, the system allows for manual updating of the “Employer-Sponsored Health Coverage Cost” in the Employee File, on the second screen, field #38 (see the screen display below).

     Approaches:

  1. You should prepare the records on a  spreadsheet and summarize the annual cost for each employee.
  2. Enter the information into the database. There are two ways to do this:
    1. Enter the code DD amount directly when creating the W-2 Information File for each employee. The system will update the DD amount back to Employee File field #38 (second screen) as well. This is a 2-in-1 job.
    2. Enter the code DD amount in the Employee File, field #38 (second screen) first. The amount will be applied to the W-2 Information File that you are creating for each employee. The concept is similar to code D (i.e., 401K) that was applied to the W-2 Information File.

I prefer method a since it saves time.



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