The Affordable Care Act requires employers to report the cost of coverage under an employer-sponsored group health plan. Many customers will need a method to update their W-2′s for 2012 with this data as it is often collected or compiled outside of payroll.

If you have, will receive, or will compile this cost of coverage information and want to import this data into either Sage Abra Suite or Sage HRMS we can help. Delphia Consulting has developed a data template for collecting the cost of coverage amounts and associated programs that will use these templates to import the values to be included on your W-2′s.

For Sage Abra Suite customers this data will be imported directly to the W-2 Box 12 with the DD code. For Sage HRMS customers this same data will be converted and imported as a Transaction History record which will result in the correct W-2 data for Box 12.

The new reporting requirement is for information purposes only to inform the employees of the cost of their health care coverage. It does not cause excludable employer-sponsored health care coverage to become taxable.

Coverage does not include:

  • Long term care coverage
  • Coverage under a separate plan for vision or dental
  • Automobile medical payment insurance
  • Credit-only insurance
  • Liability insurance or as a supplement to liability insurance
  • Coverage for only accident or disability income
  • Worker’s comp of similar coverage
  • Coverage for specific disease
  • Coverage for hospital indemnity or fixed indemnity

Visit these IRS resources for more information: