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http://blog.ipagj.com/2010/08/new-employer-form-w%E2%80%902-health-insurance-reporting-requirements/
Does anyone know if and when GP2010 will release an add-on to address the changes to the W-2 health insurance reporting requirements? All companies are required to comply to the new reporting requirements by Feb of 2011. Any information is greatly appreciated. Thanks.
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Thank you for the Accolades! I love it!
One of the big problems with the 2011 reporting is that how to compute the amount to put on the W-2 had not yet been decided. Also, there was simply not enough time for employers to respond.
There are many gray areas in the computation. While it's pretty well accepted that the COBRA rules (minus the admin fee) will be followed, some employers provide more health benefits to employees than fall under COBRA. Of course, if all you have are insurance premiums, the computation is pretty straightforward (thank goodness!)
As far as where to put it on the 2011 W-2 from is proposed to be box 12 using code DD. The draft of the 2011 W-2 can be found here:
I think it's a good idea to start the process of modifying our systems and procedures to be prepared come 2012. After all, this is what we are supposed to be doing during this 'optional' period. I would not actually report it on the 2011 W-2, but we need to be able to.
Kind regards,
Leslie
Leslie, you rock!!!
Have you heard about any alternative approaches to account for this? I'm not sure anything else is required. Setting up the Benefit seems logical. If the client's can do it for 2011 I'd still encourage it so they can establish their procedure and not worry if the numbers are off this year. I don't see this requirement as onerous - helps employers convey total comp picture to employees.
Here is the link to the IRS ruling.
The one requirement that concerns me is reporting of the employer paid health insurance premiums required on form W-2 for 2011 payrolls. I've seen nothing from Microsoft regarding this and this is now time critical, as the first 2011 payrolls are two weeks away.
I am recommending clients establish Benefit codes in GP to accumulate these figures on a pay-period basis. Whereas employees have payroll Deduction codes to track their premiums we could use a Benefit code to track employer paid premiums. This needs to be done to accumulate the premiums for each payroll run.
I think this is optimal and could satisfy the reporting requirement in lieu of any Microsoft solution. I don't see an add-on required for this.
MV,
What is your approach to the customization? I hope you have not invested a lot of time in it yet.
Other than the format of the new Form W-2 not being available, what number to put in the box is subject to a mystery calculation right now. To determine the value of the health insurance coverage, an employer will have to calculate the premiums under the COBRA continuation coverage rules (secion 4980 B (f) (4) of the Internal Revenue Code and associated regulations).
Also, the new law includes reporting requirements on benefits that have not needed to be valued for COBRA purposes. The IRS is still working on what that calculation should look like. If you have any information on how this calculation should be done, I would love to know what you think. Seriously, I'm not trying to be flip here.
Kind regards,
Leslie
Hi,
We have received a similar request from our client, working on the custom solution approcah to address this. Please drop an email to learn more.
MV
Lam,
I do not have any information, but I can tell you I have many clients who are waiting for this. One problem is that I do not think the IRS has issued the W-2 form yet that provides the necessary reporting. So, it's difficult for any of the software vendors to support the new non-existent form.
Kind regards,
Leslie
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