Federal Law now requires that employers report the value of their employer-provided benefits, including
To begin the process, first, set up the employer paid portion of the health care premium. Using the
Next, set up the employee paid portion of the health care premium. This can be done by setting up a deduction code. You can also access Payroll Deduction Setup window under the setup section of the Payroll center page. Like the benefit setup, when creating the new code (or modifying the old code), enter the W-2 Box and Label as shown below. You can then choose to roll this change down to all employees already using the code.
These new Benefits and Decustions settings will take effect at the time you enter them. All amounts collected by the codes for the entire year you then generate W-2s for will be in this box and label. This feature allows you to enter the code just before creating the year-end wage file and generating W-2s, or at any time before. There is no need to calculate values prior to implementing these benefits and deductions.
When running W-2s, the amounts will be in the correct box, as specified above. The employee in the example below had $592.32 in employer paid health insurance premiums (benefit code). She also had $875.40 in employee paid health insurance premiums for the year. As you can see on the Edit W-2 Special Information window, Dynamics GP has added the two amounts together since they had the same box and label from the Benefits and Deductions detup windows (above).
With Dynamics GP's Payroll and Human Resources modules, it is easy to be in full compliance with Federal laws regarding the tracking and valuation of both the employer-paid and employee-paid contributions to the health care benefits received by your employees.
By TMC, your Southern California Dynamics GP Partner