Healthcare Benefit Compliance with Dynamics GP

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Federal Law now requires that employers report the value of their employer-provided benefits, including health care plans.  This requirement includes both the premium portion paid by the employer (Benefit), as well as contributions of the employee (Deduction).  Compliance with the requirement can easily be accomplished with Dynamics GP, using the Human Resources and Payroll modules.  tracking the values of both employer and employee contributions will require your benefits (health insurance) to be set up as a two items; one Benefit for the employer-paid portion; and a Deduction for the employee-paid contributions.

 To begin the process, first, set up the employer paid portion of the health care premium.  Using the Human Resources module, the first step in your company procedure will be to have the benefit set up first.  (See the illustration below)  After that, the steps fort creating the benefit follow the normal payroll setup for any benefit offered to your remployees.  Access the Payroll Benefit Setup window from the Setup section of the Payroll center page.  When creating the new code (or modifying the old code), be sure to enter the W-2 Box and W-2 Label as shown below.  You can then choose to roll this change down to all employees already using the code.

HR Benefit Setup window

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.

W-2 Deduction Setup Window
W-2 Deduction Setup Window

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).

W-2 Special Information window

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

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1 thought on “Healthcare Benefit Compliance with Dynamics GP”

  1. What if the above was never setup for 2013, how could I get the benefit amounts into employees files for 2013 to show up on there 2013 W-2’s. I will have around 400 W-2’s for 2013, most have medical benefits.

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