How Do I List Employee Health Insurance?

The Affordable Care Act requires employers to report the cost of coverage under an employer-sponsored group health plan on an employee's Form W-2, Wage and Tax Statement, in

Box 12

, using Code DD.

Does Box 1 on W-2 include health insurance?

You'll need to review your paycheck stub to determine when you pay for health insurance. Also,

if you have pre-tax amounts withheld from your paycheck for your insurance, the amount on your W-2, Box 1 won't include the cost of your health insurance

.

What goes in box 12 dd on W-2?

Box 12 amounts with the code DD signify

the total cost of what you and your employer paid for your employer-sponsored health coverage plan

. Code DD amounts are for informational purposes only—they don't affect the numbers in your tax return.

How do I account for employee benefits?

Journal Entries. When recording your employees' benefits in your payroll or general ledger,

list the amounts you withheld from their paychecks for benefits under the respective accounts as credits

. When recording wages paid, include fringe benefits paid to your employees, as a debit.

How do I record an employee paid health insurance in QuickBooks online?

1. Click Employees at the top menu bar and choose Payroll Taxes and Liabilities.
2. Tap Adjust Payroll Liabilities.
3. Enter the Date and Effective Date.
4. Under Adjustment is for, choose Company.
5. Select the Health Insurance item and enter the Amount.
6. Tick Accounts Affected and then OK.
7. Hit OK.

What is Box 14 on the W-2 for?

Box 14:

Your employer may report additional tax information

here. If any amounts are reported in Box 14, they should include a brief description of what they're for. For example, union dues, employer-paid tuition assistance or after-tax contributions to a retirement plan may be reported here.

What is 12a on my W-2?

The lines labeled 12a, 12b, 12c, and 12d (sometimes listed as 12a-d) on your W-2 are just

line labels

, not codes. Don't enter these line labels. For example, if you see “D” on line 12a, enter “D” in TurboTax, not “a”. And if line 12a is blank, don't enter anything.

What is Box 13 on a W-2?

Form W-2, Box 13

a qualified pension, profit-sharing, or stock-bonus plan

under Internal Revenue Code Section 401(a) (including a 401(k) plan).

What is the difference between Box 1 and Box 3 on my W-2?

The numbers in Box 1 and Box 2 help determine an employee's tax refund or liability. Most benefits that are exempt from federal income tax are not exempt from Social Security tax.

Box 3 reports how much money an employee earned that was subject to Social Security taxes during the year

.

Does Box 12 dd include employee and employer contributions?

It is included in Box 12

in order to provide comparable consumer information on the cost of health care coverage. In general, the amount reported will include the portion paid by the employer as well as the portion paid by the employee. It will not include the amount of any salary reduction contributions.

Why is Box 1 and Box 16 different on my W-2?

Some employees may see a difference between Box 1 Federal Wages and Box 16 State Wages

due to the value of certain pre-tax transportation benefits

.

Is employee portion of health insurance taxable?

Employer-paid premiums for health insurance are exempt from federal income and payroll taxes. Additionally, the portion of premiums employees pay is

typically excluded from taxable income

.

Do I have to report Box 12 W on my tax return?

If you have an amount reported in box 12 of your W-2 (Code W) for employer contributions to your health savings account (including contributions through a cafeteria plan), then

you will need to complete IRS Form 8889 Health Savings Account

.

Is code DD on W-2 deductible?

The amount shown on your W-2, Box 12, using Code DD, represents the of the cost of pre-tax employer-sponsored health coverage, and is for your information only. The amount reported with Code DD is not taxable, but

neither can it be claimed as a tax deduction (medical expense) by an individual taxpayer

.

What type of expense is employee benefits?

You can generally deduct the cost of providing employee compensation and benefits as a

business expense

. If you have employees, you are undoubtedly aware that you can claim a business expense deduction for the wages and salaries that you pay them.

What is included in employee benefits expense?

Examples are

pension, gratuity, post-employment medical benefit

, etc. Contribution and benefit plans can be varied like State plans, Multi-Employer plans or Insured plans and they require separate disclosures in the financial statement.

How do I record payroll remittance?

How do I categorize health insurance in QuickBooks?

1. Go to the Transactions menu.
2. Find the healthcare expense, or select Add transaction and enter it manually.
3. Select Business for the type.
4. Select the link in the Category column.

How do I record an employee portion of health insurance in QuickBooks?

1. Go to the employee's profile.
2. Select on the employee and go to section 5, click + Add deduction link.
3. Select these options from the drop-down: …
4. Enter the provider and the amounts for Employee and Company-paid fields.
5. Select Pre-tax insurance premium.
6. Click OK.

How do I record health insurance in QuickBooks?

1. Click the Gear icon.
2. Select Healthcare, then enter your info and answer the questions about your health insurance situation.
3. Select the Health Savings Account tab.
4. Answer the questions about your health insurance situation.
5. When you're done, select Save.

Do I need to report Box 14?

Generally, the amount in Box 14 is for informational purposes only; however,

some employers use Box 14 to report amounts that should be entered elsewhere on your return

.

How do I file box 14 on my taxes?

Employers can put just about anything in box 14; it's a catch-all for items that don't have their own dedicated box on the W-2. In TurboTax,

enter the description from your W-2's box 14 on the first field in the row. Enter the dollar amount and select the correct tax category that goes with that description

.

How much was the 3rd stimulus check?

Most families received

$1,400 per person

, including all dependents claimed on their tax return. Typically, this means a single person with no dependents received $1,400, while married filers with two dependents received $5,600. Qualifying dependents expanded.

What is W-2 Box 12b?

The W-2 box 12 codes are: A – Uncollected Social Security tax or Railroad Retirement Tax Act (RRTA) tax on tips. Include this tax on Form 1040 Schedule 2, line 13. B –

Uncollected Medicare tax on tips

. Include this tax on Form 1040 Schedule 2, line 13.

What do boxes on W-2 mean?

The W-2 boxes and W-2 codes

show the taxable wages

, you've earned and any taxes paid through withholding.

What is 12a 12b and 12c on W-2?

Your W-2 has four

Box 12 lines

, labeled 12a, 12b, 12c, and 12d. These lower-case letters are just line labels and have no meaning. Also, Box 12 usually has “See instructions for box 12” or “See instrs for box 12”. Please ignore – that's intended for your payroll department.