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jennifer6
January 3, 2019
Question

We have a deduction/contribution payroll item in QB Online under the category "Health Insurance". Will this contribution track to box 12 of the W-2 with the code DD?

  • January 3, 2019
  • 3 replies
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Original commenter did not share additional details

3 replies

RenjolynC
RenjolynC
January 3, 2019

Hi jennifer6,

 

The contribution will not automatically populate on box 12 with code DD in the W-2 form. You'll have to manually report the health coverage by following these steps:

  1. On the left panel, click Taxes.
  2. Choose Payroll Tax.
  3. Under Form, click the Annual Forms link.
  4. Click the W-2, Copies B,C & 2 link.
  5. On the Printable Employee Copies: Form W-2 page, click the go here link next to If you're required to report Health Coverage on Form W-2.
  6. Enter the total amount paid in 2018 by both the employer and the employee.
  7. Click Continue.

You can also check this article for more information: Employer-Sponsored Health Coverage W-2 entry.

 

Please let me know if you have any additional questions. Thanks. 

    N
    NatalieC
    January 14, 2019
    @RenjolynC wrote:

    Hi jennifer6,

     

    The contribution will not automatically populate on box 12 with code DD in the W-2 form. You'll have to manually report the health coverage by following these steps:

    1. On the left panel, click Taxes.
    2. Choose Payroll Tax.
    3. Under Form, click the Annual Forms link.
    4. Click the W-2, Copies B,C & 2 link.
    5. On the Printable Employee Copies: Form W-2 page, click the go here link next to If you're required to report Health Coverage on Form W-2.
    6. Enter the total amount paid in 2018 by both the employer and the employee.
    7. Click Continue.

    You can also check this article for more information: Employer-Sponsored Health Coverage W-2 entry.

     

    Please let me know if you have any additional questions. Thanks. 

    I have QB Desktop.  Do I have to manually enter the health insurance contributions on the W-2, Box 12 DD?

    Angelyn_T
    Angelyn_T
    January 15, 2019

    Hello there, @NatalieC.

     

    Allow me to join the thread and help share information on how enter health insurance contributions on the W-2 Form, box 12 with the DD code.

     

    You may need to create a payroll item and select Health Coverage Cost for the Tax Tracking Type so that the item will be reported on the employee's Form W-2 in box 12, with the code DD.

     

    To create an item:

    1. Select Lists at the top menu bar.
    2. Select Payroll Item List.
    3. Click on the drop-down arrow beside Payroll Item and select New.
    4. Select Custom Setup under Select setup method, then click Next.
    5. Select Company Contribution under Payroll item type and click Next.
    6. Enter the item name under Name used in paychecks and payroll reports, click Next.
    7. Select the agency for company-paid liability, click Next.
    8. Select Health Coverage Cost under Tax Tracking Type.
    9. Click Next until you'll reach Finish.

    Next, create a payroll and add the item created under Other Payroll Items.

     

    The payroll item will now automatically reflect on box 12 in the W-2 Form with the DD code.

     

    If you don't have the payroll item setup previously, you may need to create a liability adjustment and select the item created.

    1. Go to Employees at the top menu bar.
    2. Select Payroll Taxes and Liabilities.
    3. Click on Adjust Payroll Liabilities.
    4. Add the date.
    5. Select Employee and add the name of your employee.
    6. Add the item created with the amount under Item Name in the Taxes and Liabilities window.
    7. Click OK.

    That would do it. Let us know if you have any other questions by adding a comment below, we're always here to help. Have a great day ahead!

      L
      Ladyorganizer
      January 31, 2019

      What about W-3 box 12?  How do I get total on W2 to reflect?

      HELP please

      IamjuViel
      IamjuViel
      January 31, 2019

      Hello there, @Ladyorganizer.

       

      Allow me to share some details on how your W3 information populates in QuickBooks.

       

      Depending on the version of QuickBooks you’re using, there are specific steps to make sure your Employer-Sponsored Health insurance is reported accurately. 

       

      For starters, W3 is the Transmittal of Wage and Tax Statement forms for the Social Security Administration (SSA). This serves as a summary of all the W2’s you prepared.

       

      As mentioned by my colleague, @RenjolynC, if you’re using QuickBooks Online there would be a need for you to update your Health Coverage information manually while preparing your W2.  Once updated, it will automatically reflect on your W3.

       

      While, if you’re using QuickBooks Desktop, you must create a payroll item for your Health Insurance coverage. Kindly follow the step-by-step instructions provided by my colleague, @Angelyn_T..

       

      On the other hand, if you have created a payroll item for your Health Insurance and none were reflecting on your W2 Box 12 DD, let’s review how your payroll item is set up.

       

      Here’s how to run payroll checkup.

      1. Go to Employees.
      2. Choose My Payroll Service.
      3. Select Run Payroll Checkup.

      Once checked, you can open your Payroll Summary Report and compare the data on it with what you have in your W2 form.

       

      If there’s a need to correct only one or two paychecks, you can delete and recreate the said paycheck and create payroll adjustment for it. However, if it involves correcting all the paychecks of your employees, I’d recommend contacting our Payroll Support Team. A payroll agent would be able to further check on it via secured remote access session.

       

      Here’s how to contact us:

      1. Vendors: https://help.quickbooks.intuit.com/en_US/contact.
      2. Choose your QuickBooks Product.
      3. Click Payroll.
      4. Choose your type of Payroll Subscription.
      5. Select Payroll.
      6. Click on the View Contact Info button to see the support number.

      Don’t hesitate to click the Reply button if you have other questions about preparing your W2 and W3 tax forms. I’m always here to lend a hand.

      JenoP
      JenoP
      January 22, 2020

      Let me repost the link for you, Bookkeeper11. 

       

      The support article can be accessed here: https://quickbooks.intuit.com/learn-support/en-us/insurance-and-medical-benefits/quickbooks-desktop-payroll-reporting-employer-sponsored-health/00/369429.

       

      Also, scroll-down all the way to the bottom to see Code DD if you're selecting it manually through the Form W2. Then, click Yes in the pop-up window that's asking if you want to override it. 

       

      Another way of adding it manually is through a payroll adjustment. Just make sure that you're using the correct tax tracking type for the health coverage so it will reported in the correct box with the correct code.

       

      Sharing these articles with you for additional reference:

       

      I'd be delighted to join the thread again in case you need more help with your tax forms. 

       

       

      A
      AGCorp
      January 26, 2020

      Hi JenoP,

       

      I also have a similar question as others in the thread. The article you linked in your post indicates that the employee pre-tax contributions for health insurance also need to be reported in W2 Box-12 DD. Given that, how do we add the employee portion to the W2? As others have indicated, the Box 12 -DD does have the employer contribution (Based on the Health Coverage Cost" tracking type).

       

      Thanks in advance

      AG

      JessT
      JessT
      January 27, 2020

      Hi AGCorp!

       

      I'm taking care of your question since JenoP is already out of the office.

       

      The Health Coverage Cost tax tracking type will actually show the DD code in box 12 of the employee's W-2. The other option is to override by selecting the DD code from the form itself, as explained by Jeno above. However, the first option is what we always recommend for correct reporting.

       

       

      Let me know if you have additional questions about your employee's W-2 form.

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