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TitleHealth Coverage User Guide - Intuit: small business, personal
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Health Coverage Reporting User Guide for QuickBooks 1 of 16
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Health Coverage Reporting User Guide for QuickBooks
The Patient Protection and Affordable Care Act (Pub L. No. 111-148) requires employers to
report the aggregate cost of coverage under an employer-sponsored group health plan on
employees’ Form W-2. This reporting is informational only, to show employees the value of
their healthcare benefits, and does not affect the employee’s tax liability. (That is, the value of
the employer contribution to health coverage continues to be excludible from an employee’s
income and is not taxable.) The IRS has since issued notices providing transitional relief by
making the reporting requirement optional for some employers.

How does this impact me?

For tax years 2013 to present: The IRS has not changed the transitional relief. The reporting
requirement is still optional for small employers. You are considered a small employer if you
filed fewer than 250 Forms W-2 for the previous tax year; for example, employers that filed
fewer than 250 Forms W-2 for 2014 are not required to report the cost of coverage on their
2015 Forms W-2.

What do I need to do in QuickBooks?

For employers who must report the cost of health coverage (those who filed 250 or more Forms
W-2 for the previous tax year) or who choose to report, this User Guide explains how to track
these costs in QuickBooks so that they automatically appear on Forms W-2.

To track health coverage costs by employee:

1. Be sure you’ve downloaded the latest Payroll Update (21601 or later).

2. Plan how you’ll manage the reporting requirement (choosing a calculation method,
calculating each covered employees’ portion of the total cost of health care coverage,
and deciding how to record these costs for each covered employee)

3. Set up a Company Contribution payroll item with a new tax-tracking type.

4. Record health care coverage costs per employee in one of three ways:

a. Automatically when you pay employees by attaching the new payroll item to each
employee record.

b. Manually when you pay employees by entering the payroll item for each
paycheck.

c. Manually by making liability adjustments.

5. File Forms W-2 (box 12, code DD).





Frequently Asked Questions









Last Updated: 12/17/15 (Revision History)


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Download the latest payroll update


In order to use the tax-tracking type to track the cost of employer-sponsored health
coverage so you can report it on employees’ Forms W-2, you need to have downloaded
the 21601 (or later) payroll tax table update.



To do this task:

1. From the Employees menu in QuickBooks, choose Get Payroll Updates.


2. Check the tax table version you are using. If it is lower than 21601, select

Download entire payroll update and click Update.




(Some of the graphics in this guide reflect earlier versions of QuickBooks; however, the instructions apply to
QuickBooks 2013, 2014, 2015, and 2016.)







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Record costs manually when you pay employees



If you don’t want to record health care costs for covered employees on every paycheck,
you can enter costs manually using the new payroll item on periodic payroll runs. For
example, suppose you pay your health care premiums quarterly and know the quarterly
per-employee reportable cost but don’t want to calculate the biweekly cost to record on
every paycheck. You could choose one payroll run each quarter for which you manually
enter the reportable cost for each covered employee as you prepare the payroll.

Caution: If you decide to record costs manually on a periodic basis, you have to
remember to do it for each period for every covered employee.

When you use this method to record health care costs, QuickBooks shows the health
care cost on the employee’s pay voucher or pay stub and reports these amounts on the
Transactions by Payroll Item report (from the Payroll Summary report). For Standard,
Enhanced, and Assisted Payroll, QuickBooks also supplies the total cost when you create
the employee’s Form W-2.



To do this task:

1. Be sure you have calculated the reportable cost for each covered employee for the
period.

2. Open the Payroll Center and, in the Pay Employees area, click Start Scheduled
Payroll (or Pay Employees, if you don’t have payroll schedules set up).

3. On the Enter Payroll Information window, complete the date and bank account
information and put a check mark next to the employees you plan to pay.

4. Click Open Paycheck Detail to display the paycheck details for the first selected
employee.

5. In the Other Payroll Items area under the Item Name column, click in the white
space and then choose the new payroll item (for example, Reportable Health Care
Costs). Under the Rate column, enter the reportable cost for that employee for the
period.



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6. Click Save & Next to move to the next employee’s paycheck detail, and repeat
steps 5 and 6 until you have recorded reportable costs for all covered employees.
When you have entered the information for the last employee, click Save & Close.

7. Click Continue and review the payroll information on the Review and Create
Paychecks page.

8. When you’re ready, click Create Paychecks.

9. On the Confirmation and Next Steps screen, click Print Paychecks or Print Pay
Stubs, as appropriate. If you have Assisted Payroll, be sure to click Send to send
your payroll information to the Assisted Payroll service.







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Q: What if I have QuickBooks 2012?

A: The 2015 Forms W-2 and W-3 will not be supported for QuickBooks 2012. Live
technical support and add-on business services, like payroll, are discontinued for
QuickBooks 2012 on May 31, 2015. (Your payroll services are valid only when you
are using a supported version of QuickBooks.) Learn more about upgrading to a
current version of QuickBooks at www.intuit.com/policy or visit
www.quickbooks.com.)


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Health Coverage Reporting User Guide for QuickBooks 16 of 16
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Revision h istory

Date Revision Details

12/14/11 Original document

01/09/12 Updated IRS Notice number and link to latest IRS information
(Notice 2012- 9)

03/16/12 Added video links, clarified use of new tax tracking type with a new
payroll item , updated IRS Notice 2012 -9 link , and added link to IRS
chart showing coverages that must be reported and those that are
optional under transitional relief.

03/29/12 Corrected link to Intuit support article.

09/24/12 Updated steps in “Attach payroll item to employee records” to
reflect user interface changes in QuickBooks 2013.

12/12/12 Updated information on W -2 filing.

3/ 8/13 Updated information for tax year 2013.

3/ 5/14 Updated information for tax year 2014 .

12/17/15 Updated information for tax year 2015 and later.





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